Sunday, September 14, 2014

Why You Shouldn’t Use Yelp

                In a time when much of our lives revolves around access to the Internet, our online profiles are hugely important. This is especially true for many small businesses who depend on positive user reviews and comments from their customers.  There are plethora of services that have been created to help businesses with good reviews be found by potential new customers.  One of these companies, Yelp, has become a go-to website for thousands of people to find reviews and recommendations for small businesses around the world.  Over time, however, Yelp has become a morally corrupt company that you, as a consumer, shouldn’t trust as an honest source of reviews.
                Founded in 2004, Yelp has over 138 million unique users per month, 79,900 business accounts, and over 61 million reviews[1].  Businesses take advantage of the wide user base by publishing deals, release news, and interacting with their customers.  In addition, Yelp provides them with a paid advertising platform to help get their name to new customers.
                Under normal circumstances, the website sounds like a fantastic tool to find new stores and restaurant that you and your friends could visit.  On the contrary, Yelp has become an extortion agency, constantly looming over small businesses that are struggling to stay afloat.  Their process for earning new advertising revenue is as follows: A representative initiates contact with some business with a profile on Yelp.  The representative then offers the business owner a deal to publish ads.  At this point, the owner will choose whether or not to take the offer, and then go on with their day.  Sounds ok, right?  It was for a while, unless the owner chose not to advertise through Yelp.  Sometime in the weeks after they deny the offer, Yelp begins altering what can be seen on the businesses profile.  They begin hiding positive reviews and ratings in favor of displaying only negative, seemingly in hopes of pressuring the owner into buying advertising space (It should be noted that restaurant owners have no control of their profile – anyone can create a page for a business).
                One would hope that these cases are isolated and simply the work of immoral Yelp salesmen.  However, a ruling last week[2] stated that these actions were not legally “extortion” because Yelp did not write the negative reviews and that there was not enough proof that the deliberate hiding of positive reviews contributed to economic loss.  The ruling means that Yelp can continue to manipulate rating of businesses until they sign advertising deals.
                This is a very dangerous precedent in an age where our online profiles are almost more important than our physical ones.  Finding new stores and restaurants to visit has become an online activity.  You can see from Yelp’s user base that millions of people log on to find the best rated spots in their area.  Websites like Yelp contribute greatly to the economic success or failure of small businesses.  If users are fed misleading information about the quality of a restaurant, that owner will lose those customers.  The only thing they can do about it is pay the advertising representatives and hope that their customers see the positive reviews they deserve.
                In this age of information, we expect to find people in our communities who share honest information about the places around us.  Companies like Yelp take advantage of that, betraying our trust and threatening the livelihoods of small business owners so that they can sell advertisements.  The deception they cause have dire consequences for the people that they affect.  As users, we should avoid these platforms in favor of neutral companies that support small business instead of blackmail them.

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