Yelp.com Accused of
Extortion by California Veterinary Hospital
Feb. 25 (Bloomberg) -- Yelp Inc., the operator
of a Web
site where consumers read and write reviews of
local businesses,
was accused of extortion by a Long Beach,
California, veterinary
hospital.
Cats
and Dogs Animal Hospital Inc. said in a complaint
filed Feb. 23 in Santa Ana, California, that Yelp sales
representatives offered to hide negative reviews of
the hospital
or place them lower on its listing page so fewer
people would
read them in exchange for Cats and Dogs buying a
$300-a-month
advertising subscription.
The
hospital accuses closely held Yelp of violations of
Californias unfair competition law and seeks to
represent other
businesses in a class-action suit. Beck said dozens of
businesses have contacted him with similar stories,
including
realtors in Texas, a baker in Chicago and a
veterinarian in New
York.
