Yelp! at Your Own Risk

What is Yelp?

Yelp, Inc. is an American company that operates an “online urban guide” and business review site. The company’s website began as an email service for exchanging local business recommendations and later introduced social networking features, discounts, and mobile applications.[i] The company’s website contains a discussion forum and other social networking features. It requires reviewers to register and encourages them to create a user profile. It offers “praise and attention” to user reviewers plus special status and social events for its most popular, prolific and “elite” members.[ii]

Simple enough, right? So what’s all the fuss about?

It has become increasingly apparent that writing Yelp reviews may land you in some hot water, which begs the question “Why would writing a negative review get me sued?” The site asks for users to write honest, first-hand accounts of what their experience was like. Yet, when that honest review turns out to be negative/critical, some business owners may not take it so lightly. In the last week or so there have been at least two lawsuits dealing with Yelp reviews, which actually bookend the spectrum of potential outcomes arising from disgruntled reviews. On one end of the spectrum is a review that stated a contractor damaged and stole the reviewer’s property.[iii] The jury came back with a guilty verdict for defamation.[iv] On the other end of the spectrum was a review of a local dentist, who attempted to sue for defamation, but his claim was dismissed referencing California’s Anti-SLAPP Law.[v]

Ok, so the Anti-SLAPP Laws will protect me then?

Not necessarily. California provides a special motion to strike strategic lawsuits against public participation (SLAPPs), which is intended to put a quick end to nonmeritorious lawsuits designed to suppress speech on a matter of public concern.[vi] Public reviews of businesses, health care, restaurants and any other type of service provider, have been around since the first customer was served. Services like Yelp have made the dissemination of these reviews readily available to anyone willing to read them. One would think that every state would have an Anti-SLAPP statute protecting the public, but that is not the case, as 21 states have not enacted an Anti-SLAPP law.[vii] One of those states, Virginia, was home to the first review I mentioned where the defendant was found guilty of defamation after being sued by her contractor. Would an Anti-SLAPP statute have helped her? Should every state have a statute similar to California? It’s tough to say, but one could easily make the argument that Anti-SLAPP laws unnecessarily expand our First Amendment Rights.


[i] Yelp, Inc., wikipedia.org, http://en.wikipedia.org/wiki/Yelp,_Inc (last visited February 8, 2014).

[ii] Id.

[iii] Perez v. Dietz Development LLC, Va. Cir. Ct., CL 2012-16249, jury verdict 1/31/14.

[iv] Id.

[v] Rahbar v. Batoon, Cal. Ct. App., No. A136463, unpublished 1/31/14.

[vi] 23 HLR 221 (Issue No. 6, 02/06/14).

[vii] Public Participation Project, Anti-Slapp.org, http://www.anti-slapp.org/your-states-free-speech-protection/ (last visited February 8, 2014).

Anonymous Yelp reviews not hearsay.

A Florida Federal District Court judge ruled that reviews posted on Yelp, the social media site that invites people to review local businesses,  potentially illustrated evidence of “customer confusion,” an element of trademark infringement.  An article appearing in Bloomberg Social Media Law and Policy Report highlighted the case, which concerns a challenge by You Fit, Inc. a national gym chain against a defendants who chose to name their Florida gym, Fit U.   You Fit sought to introduce two Yelp postings that explained consumer confusion.  One such posting began “I am soo confused.”  Defendants in the case argued that the reviews were hearsay and therefore inadmissible.  The court, however, disagreed and concluded that the posters’ declarations were admissible since they demonstrated “the then existing mental state of the declarents who posted the comments.”

What do we mean when we say social media?

The Dayton Business Journal recently published the list of the top ten most visited social media websites. The list was compiled based on total number of visits.  No big surprise with Facebook, YouTube and Twitter in the top three spots.  Interesting to me was that Pintrest ranked fourth and that two relatively new sites, MeetMe and Tagged, scored pretty high up there, bumping Yelp at the same time.  Nothing much legal about a list of sites, but I think it interesting to have a sense of just what we are speaking of when we say “social media.”

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