yelp is getting sued for Extortion and Slander

Two law firms filed a class-action lawsuit on Tuesday against Yelp, the Web site that lets users post reviews and recommendations for small businesses and restaurants. The lawsuit, which was filed in federal court in Los Angeles, alleges unfair business practices and accuses Yelp of running an “extortion scheme.”

The suit claims that Yelp’s employees “call businesses demanding monthly payments, in the guise of ‘advertising contracts,’ in exchange for removing or modifying negative reviews appearing on the Web site.”

The suit was filed on behalf of a veterinary hospital in Long Beach, Calif., who asked Yelp to remove what it called a “false and defamatory review” from its site. The lawsuit says Yelp refused and instead demanded “roughly $300 per month” in exchange for Yelp hiding or completely removing the review in question. The filing of the suit was first reported by TechCrunch.

Vince Sollitto, Yelp’s vice president of communications, would not comment but provided this statement:

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