Cyber Monday Sale! 50% Off All Access

Yelp Continues to Defend Against Claims of Review Manipulation Some business owners are expressing anger and confusion over the site's system for filtering reviews.

By Jason Fell

Social review site Yelp has a big problem: Angry small-business owners. This week, Yelp published a fiery blog post defending itself, yet again, against claims that it extorts money from small-business owners. Some outspoken business owners and several media reports have accused Yelp of manipulating reviews and ratings for pages of companies that refuse pay Yelp for advertising.

"Let me be clear: This claim is not -- and has never been -- true," wrote Vince Sollitto, vice president of corporate communications at Yelp.

Managing a business page on Yelp can be a blessing or a nightmare for business owners. A page full of five-star reviews can help drive business. But negative reviews can kill business, and the process of trying to convince Yelp to remove fake reviews can be exhausting.

The problem is twofold. The algorithm Yelp uses to determine which reviews will be displayed on a business's page can sometimes filter legitimate, positive reviews out while highlighting negative ones instead. Lawsuits from business owners have alleged that Yelp will only remove those bad reviews in exchange for buying advertising on the site.

Related: When Bad Online Reviews Cost Business

Yelp has denied these allegations, pointing out that the legal complaints have all been dismissed due to lack of evidence.

"In either case -- if Yelp is guilty of recommendation manipulation or if businesses are simply seeing the natural trend of recommendations come and go -- it's Yelp who has created this situation, and they are the ones who need to fix any misconceptions," says Brian Blau, a research director for consumer technology and markets for New York City-based tech research group Gartner Inc.

For business owners, one big issue is that many don't understand Yelp's filtering system. Presumably to guard its proprietary technology from competitors and users who'd try to "game the system," Yelp has not publicly revealed specific details about how the algorithm works.

"Ironically, it's this mysterious black box that instills distrust in companies that in turn begin to believe Yelp is out to get them," says David Gerzof Richard, a social media and marketing professor at Emerson College in Boston and president of public relations and social media firm BIGfish. If business owners that don't understand the process continue to see bad reviews, justified or not, the allegations will continue, he says.

"Because Yelp keeps their recommendation filter algorithm secret the public may never know Yelp's true intentions," Blau says. "Until Yelp removes any perception of bias or conflict of interest, businesses will continue to be caught up in a real or perceived tough spot when they start to see negative reviews on their Yelp page."

Related: Got a Bad Yelp Review? Here's What to Do

Jason Fell

Entrepreneur Staff

VP, Native Content

Jason Fell is the VP of Native Content, managing the Entrepreneur Partner Studio, which creates dynamic and compelling content for our partners. He previously served as Entrepreneur.com's managing editor and as the technology editor prior to that.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

'This Company Has Been My Life': Intel CEO Retires, Reportedly Forced Out

Intel CEO Pat Gelsinger has led the company since February 2021 and said his departure is "bittersweet."

Fundraising

They Turned Down an Early Pay Day to Maintain Control of Their Business. And Then Went on to Raise $190 Million.

Jason Yeh, co-founder and General Partner of Patron, explains the early-stage venture firm's creation and future outlook.

Business News

'I Stand By My Decisions': A CEO Is Going Viral For Firing Almost All of the Company's Employees — Here's Why

The Musicians Club CEO Baldvin Oddsson fired 99 workers at once over Slack for missing a morning meeting. But there's a catch.

Real Estate

Why Real Estate Should Be a Key Part of Your Wealth-Building Strategy in 2025 and Beyond

Real estate remains a strong choice for building wealth in 2025 and beyond, from its ability to generate passive income to offering long-term appreciation and acting as a hedge against inflation.

Marketing

How to Beat the Post-Holiday Sales Slump and Crush Your Q1 Goals

Overcome the post-holiday sales slump and keep the momentum strong with these key tips.

Franchise

You Can Start These 10 Franchises for $10,000 or Less

Many budget-friendly franchise opportunities are in industries with high demand, such as home services, cleaning or mobile businesses.