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Billion Dollar Bully (2019)
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[music playing] [reporter] Tonight, some local businesses are yelling "Help!" after getting targeted on Yelp. A lot of business owners say what Yelp is really doing is extorting them for advertising money. One bad review can really, like, destroy your business, you can lose thousands of dollars. Consumer investigative reporter, Harry Sandler, wanted to speak with Yelp about its top reviewer right here in Atlanta. And as it turns out, that reviewer is actually a paid Yelp employee. [reporter] Yelp would only give us an on-camera interview if we would agree to give the story a positive spin. We don't work that way. A Yelp spokesperson says we are being unfair. Is Yelp good or evil? Let's take a look and see what the research has to say about the debate. [David Balto] Over 2,000 complaints were filed by businesses that their rankings were diminished because they refused to advertise with Yelp. My name's Adam Fisher, I own Computers WTF. I manage AAA Appliance Service Center. We're Gentle Giant Moving Company. BCR-Propridge LLC. Pizzeria in Nashville Tennessee. I own Belle Roche Estate Jewelry, and I've been extorted by Yelp. And I have been extorted by Yelp and Yelpers. I was harassed by Yelp. I'm being exploited by Yelp. Extorted by Yelp. -Extorted and harassed... -By Yelp. We have been extorted by Yelp. [Charlie Rose] Jeremy Stoppelman is here, he is co-founder and CEO of Yelp. It is a website and mobile app dedicated to user reviews. Since its IPO in 2012, Yelp stock price has soared. It now has a market capitalization of $3.2 billion. I'm pleased to have Jeremy Stoppelman at this table for the first time. Welcome. -Thanks for having me. -Oh, boy, you, uh... Let's... I don't know where to start. Tell me what Yelp does, that's where we can start. Uh, one way to look at it is it's just word-of-mouth, amplified. You know, we set out to create the new Yellow Pages, a better way for finding local businesses. -And so, just like Wikipedia, it's open to all commerce. -Right. Anyone can come onto the site, write a review of their favorite local business, and all of that local knowledge can then be searched over. And so, you can find just about any business that you want. And, you know, here in the States, just about any city, and increasingly throughout the world, you can find the best local businesses by turning to Yelp. I use Yelp. [woman] My friends and I will get in a circle and talk about it from the Yelp review, and then we'll choose where we go. We usually try and find a restaurant based on Yelp reviews. Looking up food and places and stuff like that. I go straight to... First of all, the stars. If it has, like, two stars, most likely I won't go to it. -Exactly. Exactly. -Two stars. Like, whoa. I always use Yelp to get any kind of service. I started at Yelp in March of 2011. There was some kind of appeal, I just had to know what was going on in there. Some kind of allure and romance to working at a big company like that, it seemed very exciting. There was a feeling that you had to be exceptional to work there. There was a feeling you had to be really smart and talented. [Stoppelman] We've got this wonderful feature for all of our top salespeople. So if you're a top salesperson for the month, you get to go have an incredible photo made. Uh, there's this place in the Mission that specializes in, like, quinceanera photography and, uh... So we send our top sales rep over to that studio and then they come up with a costume and a theme and an idea of their own. That is some really good incentive to become a top salesperson, is to get something like this. Everyone wants to be on this wall, for sure. [Valentine] Sales floor, it's like... Each team has a couple of pods, and it does feel kind of like, you know, you're on the rowing team or something, where you're definitely aware of, like, "How's that team doing?" And there's even a board, you know, all the teams and their number. Each team has a board and each rep has their number up. So there's complete transparency, the whole time, of how everybody's doing. And so you're naturally going to want to show success. [Amy Lane] It was somewhere I would go to get phone numbers and addresses, and business information, so I thought it kind of worked. Just like the Yellow Pages, and maybe it was set up by the city or something, but then, it's not. It's a private corporation that has a business model and their business model affects everybody. Whether you want to be on Yelp or whether you don't want to be on Yelp, whether people know you're on Yelp or not, you're gonna be on there. Yelp always controls the narrative. [indistinct chatter] My name is Danny Teran and I am the owner-operator of The Wheelhouse Brooklyn. I did not put myself on Yelp. One of the users and people who came into our restaurant created an account for us and started our account off with a nice five-star review for their first experience. From then on, it was new and it was fresh and people were really enjoying theirselves and coming in here and leaving us positive reviews and we got all the way up to about 35 five-star reviews. [Gabriel Vitol] I used Yelp as a consumer on and off for ten years, when I wanted to check out a new restaurant or see a new place. But I was never hardcore, like, elite Yelp user or anything like that. As a consumer, if I saw a negative Yelp review, it would absolutely make me think twice about using those services or buying that product. I came to California in 2012 to start a restaurant and I sacrificed so much and I left a lot behind at home. And I was the youngest woman in San Diego to have a restaurant and run it alone. This was the front patio of my restaurant. So I had a huge glass window... And I was just glad that I was able to come here and start a business and I was really proud of myself. I never imagined Yelp would be the reason that I would close my business. There's no accountability for jobs being lost. There's no accountability for first-time businesses who start up and take out a huge loan and have everything crushed. [Alexander G. Chamandy] Really, what got me interested in Yelp in general is just having a mix of experiences, starting off with lots of positive feedback from customers. We started to hear from these sales people in Yelp and they'd call us several times a week and we'd, uh, basically be given a pitch that, "Hey, you can spend anywhere between $300, $500 a month. It'll improve your visibility. You'll get all of this traffic." And I would politely decline. Uh, just basically say, "Look, we're a home-based business. We're of modest means and we cannot afford that in our budget." [Teran] So a sales representative from Yelp reached out to me about three months into being a business. What they were explaining was we're getting X amount of clicks on our Yelp page daily and that we should be, kind of, paying for every single one of those clicks. Yelp would call me every couple of days and they'd try and sell me these ridiculous advertising packages. And they would keep me on the phone for 40 minutes or so, it was impossible to get these guys off the phone. [Teran] So I listened to her pitch and after a week or so, hearing her out, it seemed to be as if it would be like $500 or $600 a month. I let her know it's out of my budget. It's not something we can do right now. And she was very persistent and almost to a... Like a harassing point where she just did not stop calling me and e-mailing me and calling me and e-mailing me. Telling me reasons why we need that service. And realistically, three months into the business, it wasn't in our budget at the moment. My name is Davide Cerretini and I am one of the chef-owners of Botto Bistro in Richmond, California. Yelp, it started, like, I think it was 2006. We'd jump on the wagon and, you know, we embraced their idea like everybody else. Along those years, from 2006 to 2015, many things have changed. Many things happened. It's a different story from what it was before or what we expected it to be. Yelp started to harass us around 2012. And I mean harass us. We were talking about seven or eight, nine calls a week. And there is no way to deny it because Yelp can go back and look at their record, then they see that it's true. I pay them $270 a month to shut the fuck up. Okay, on behalf of Anton who just got a deal, I'm ringing the bell for him. I feel like I'm taking something from you. -[Anton speaking indistinctly] -[man laughing] All right. All right. Here we go. This is what it sounds like. -[bell dinging] -[clapping] -[all cheering] -Yeah! [chuckling] Yelp is impossible to contact, so they call you when they have something to sell you. [Teran] It wasn't till after our conversation and me denying their service that everything happened to my account. [reporter] A busy time at the post of Yelp, the latest hot market debut. The consumer review website came to market late Thursday at a higher than anticipated price of $15 a share. The share price climbed as high as $26 a share before backing off that opening high. It was... It was a great IPO, I think. Everybody wins in that situation. Investors were happy. Employees were excited. The day of IPO came and it was this big, like, wow, you know, and celebration and... Then, after that, I felt my experience was, maybe, a dark cloud passed over the land. And going forward, it did feel a lot more like our intentions are different now and we're answering to different people. You know, stockholders. And, um, it's a different... It's a game changer once you go IPO. Yeah, it's definitely "Now, we're in the capitalist world." [Chamandy] Every time we'd get those calls, I would get more and more nervous. That when the phone was ringing and it was a 415 area code, it was likely Yelp. That this was gonna be a call that might harm my business's reputation if I don't say the right words. [Teran] It got to a point where I said to her, "Stop. I can't do this. I'm sorry." You know, "Leave me alone," in a sense. The day after I created my profile, I started getting hounded by sales people. They just called every single day making me all kinds of promises. Yelp sales people called me approximately three to five times a week. Until I finally gave in. That feeling of winning is really, uh, satisfying in some kind of way. You know, that you won somehow and you get to ring this gong on the floor and get to be famous for a second. [woman] Each time a Yelp user views your business page, it's an opportunity to gain a new customer, client or patient for your business. [Lane] Local businesses, small businesses, should have the right to be able to say, "I don't want to be on here." And there is no... There is no ability for them to do that. [Teran] I think it's definitely unfair that businesses cannot be removed from Yelp. Even at our darkest point, where all our reviews were being deleted, you know, I would ask them. I would say... I was like, "Can we just delete our account? I mean, can we just get rid of this?" And they would tell me that there's nothing to do. Your page is there forever. What I want, what every other business wants, give me the option to walk out from your list, and I will. If I can call them up right now and say take us off, I would take us off Yelp. 100%. Someone in Yelp is taking every business they can find, and any business that they think is out there, and putting it in one place. And then, imposing restrictions on how you represent your own business. [woman] Do you ever look at the filtered reviews? Filtered reviews? The... The what? I'm not aware of the filtering system. No, I've never heard of that. [chuckles] Are those the bad reviews? I've read some of the filtered reviews before but I didn't realize that they were, um, filtered out by Yelp for a particular reason. [man] Let's say you wanna check out a new restaurant in town. Your foodie friend has been there. The gentleman who lives next door who only goes out to eat once a year has been there and that new guy across the street that you just met has been there. So you ask them all what they thought. And you're probably gonna trust one of those opinions more than the others. Because no matter how nice the gentleman is, he only goes out to eat once a year. And the new guy, well, you don't really know anything about him yet. Yelp understands that just as your neighbor's restaurant opinions may not be as useful as your foodie friend's, not all reviews are created equal. Which is exactly why we recommend some reviews and not others. Reviews that Yelp doesn't recommend can still be seen via a link on the bottom of each business' profile page. But they don't factor into the business' overall star rating. I was really interested to look at the reviews that were filtered and the reviews that weren't filtered, because it just seemed like a really interesting comparison to me to see which reviews were getting prioritized over the ones that were being filtered. And the discrepancy was quite staggering. I think the first thing I found was in the content guidelines. They lay out all of these bullet points for how you're supposed to be on Yelp. So, "Colorful language and imagery is fine, but there's no need for threats, harassment, lewdness, hate speech, or other displays of bigotry." That's great. That's exactly what I want to hear if everyone is forced to have this review page. I don't want to read things that are bigoted or hate speech. And then I started looking at the actual reviews and they did not live up to the content guidelines that Yelp had set forward. For instance, uh, this was one review that I found. [reading] That sounds like... What would Yelp call that? That would be, uh... "No need for threats, harassment, lewdness, hate speech, and other displays of bigotry." Well, then the next day after this guy wrote the review, so I'm thinking, you know, "Maybe someone from Yelp hasn't seen this, maybe this is just one that slipped through the net." The community manager for Yelp said, "Can't wait to check out all those killer reviews you're cooking up, Jim." [mumbles] That's not really a review. Saying that you walk into a bar that's full of ugly chicks who won't sleep with you is really not, uh... It's not really a review of the establishment. I'm not sure what it is. I have one from the 9/11 Memorial, which is up and which is on the page. Hasn't been filtered. Hasn't been taken down. [reading] "If you want to see the effects of 9/11, just look at the pile of rubble next to the museum." And this was a review that was filtered for the 9/11 Memorial. "As a New Yorker who saw 9/11 firsthand, it's beautiful to see what they've done to help remember those who were lost by creating this memorial. You close your eyes and you feel different emotions, you feel peace. Beautiful, and a must-see for anyone visiting New York." Having a Yelp for Auschwitz seems to be in serious poor taste. I think it just shouldn't be there at all, really. I mean, who leaves a review of one of the worst sites? They haven't got the Cambodian death fields yet but I'm surprised. I feel like it's one thing to review a restaurant and to review a bar and a place of business. But to allow people to say stuff about memorials... It just doesn't seem right and it doesn't seem right that they have this content guidelines where it's like nothing offensive, no hate speech. Who is enforcing these guidelines? Because I can't really see any enforcement on that. I see a lot of nasty reviews and almost pitting the consumer against the business. If you're going to filter reviews, that's fine, it's your website. But you're not explaining your criteria for filtering them. And worse yet, you're putting out some content guidelines and you're not adhering to them. [indistinct chatter] [Cerretini] After a couple of months, we started receiving very aggressive phone calls from a guy. So aggressive that I actually told him a few times to go fuck himself. A Yelp representative reached out and we refused their offer to market on their website and after doing so, within three to five days, we had three good reviews disappear and one bad review appear. The sales representative was calling me daily. It wasn't till after our conversation, and me denying their service, that our Yelp page got spammed with 15 of the same reviews stating the same exact thing. You can call it coincidence, you know, uh... A corporation like that that is, you know, accused of extortion from every corner of the country should not have that coincidence happen in the first place. So what happened after not even a day, suddenly, you see three or four bad reviews appear and some of the good ones disappear. They take your good reviews that are legitimate and they filter them, and they put them in this section at the bottom that nobody looks at. It doesn't come up on Google and it doesn't affect the star rating. [Ronn Owens] The claim that, you know, I was asked to advertise with Yelp. I said no, and all of a sudden I went from four stars to one. How do you react? [Sollitto] Uh, we hear it all the time. [Owens] I know you do. [Sollitto] And unfortunately, it's not a true statement as far as what we do. One of the ways business owners think that this happens is that they get a call from Yelp saying, "Hey, you have a decent reputation on Yelp. You should think about advertising, so more people can see you." And they say, "No, thanks," and they hang up the phone. And they look at Yelp and go, "Gosh, I do have a reputation on Yelp. I should go get all my friends and family members to start writing reviews." And so, within 24 hours of getting that phone call, they suddenly solicit, you know, dozens of five-star reviews that then end up getting filtered out the next day because our software can't recommend or trust them. My family has a history in home improvement. And so, I started Allied Outdoor Solutions in 2009. And now we're one of the larger residential construction companies in the state. We originally contacted Yelp because we saw many of our reviews being filtered out. And at that time, I believe we didn't have any, quote-unquote, positive reviews that were unfiltered. The only things that were showing were one-star reviews. Uh, and it was only a couple, but it only takes a couple to have the average be one star. We just contacted Yelp trying to see why our real reviews from actual customers were being filtered out and not affecting our score in any way. [over phone] The only way to improve my rating on Yelp was to advertise. He said if you talk to your customers and you can't get them to change their rating to a positive from negative, then advertising is your option. We had a one-star review and we reached out to this customer, and he had never talked to us about his experience. So we reached out and we said, "Hey, we never talked to you. We didn't realize you had a bad experience." And so, he explained why and what the problem was and, fortunately, that was a problem we could fix. And so, we went out, we fixed the problem, made him a happy customer. He updated his Yelp review from a one star to a four star. It was populated in our unfiltered reviews as a one star and when he upgraded it to a four star, it, within a few days, had been filtered out. So, it was pretty telling when we have a one-star review that Yelp believes is a valid review from a valid customer. We go to that customer, we make things right because there is a way that we can. He upgrades it to a four-star review. Within a few days, it's no longer showing up on our profile. That was kind of when I read the handwriting on the wall, if you will. We have no problems once a customer calls us and we come out because then they see our company. They hear our company's story. They see pictures of our work. I don't believe that we've ever lost a job over a Yelp review when that customer met with us. But there are countless number of people that didn't call us because of our not so great Yelp rating. [man] Currently, about 75% of all reviews are recommended. We try not to highlight reviews written by users we don't know much about or those that might be fakes or unhelpful rants or raves. Of our 21 reviews, only seven of them are not filtered, so 33% are not filtered and two-thirds of our reviews are filtered out. [man] It's also important to note that Yelp treats advertisers and non-advertisers exactly the same. Our recommendation software is entirely automated. Which means the same objective standards are applied to every business and every review to ensure no one gets preferential treatment. [Vitol] A month prior to my six-month contract running out, I sent them the notice that I wanted it to end. As they require, otherwise it'll keep... They'll keep charging you month by month. That same week, I started noticing my five-star reviews dropping. I also started noticing that any new five-star reviews I got would stay up on my page not even a day. By the end of the day, they would just drop into the non-recommended section. It was really incredible how precise it was. Recently, I had a customer come in and had a great experience. Her dog was a lot of fun to have here and she gave us a five-star review. And I was thrilled. You know, I was thinking I was getting my five-star rating back, and same day that review dropped. All of her other reviews are considered recommended under the other businesses' profiles. So I was curious. I contacted this customer and just asked her, "By the way, is this review showing up when you log in to Yelp? Is it showing up as a review that is recommended?" And she sent me a screenshot of it and it absolutely shows that it's a recommended review when she logs in to her profile. I feel that Yelp continually masquerades as a public service, like, "This is for the public. You can get, like, a fair and balanced opinion." But, in essence, you're segregating people. You have the elite on the top. You have everybody else in the middle. And then you have the outcasts at the bottom. But you're not telling us what your criteria for segregating people are, you're just randomly doing it. And that raises questions for me. [upbeat rock music playing] Congratulations and welcome to the Yelp Elite Squad. Click the shiny badge on your profile and it'll take you to a private calendar that only Elites can see. I have researched as much as I can about elite members, and the process is shrouded in mystery. It's pretty much like joining the league of assassins or something, to become a Yelp Elite. That's how open it is. To apply for an elite membership, doesn't really say. How they select their Yelp Elite, doesn't really say. It says they... They'll know it when they see it. And they're looking for a je ne sais quoi. The Elite Yelpers have a huge amount of power. It seems like they're more like interns and their position to go to all these really extravagant parties where they're treated like celebrities and they, kind of, walk into restaurants and be like, "I'm an elite." And, you know, everyone's supposed to bow down and give them lots of free stuff. But why are these people being given so much power? [Susan Reynolds] Some of these Elite Yelpers have left 5,000 reviews. I will write, you know, how I feel about the food and be 100% honest about it. But that isn't the case with Yelpers because they are taking all these freebies. I'm in the restaurant business, I don't think I've been in 500 restaurants in all my life. You know, there are people here that are 21 years old, and in two years, they wrote a review for 500 businesses. Let me ask you this, how is it fucking possible? I mean, if you're going to work, and you have a family, and you have time to have a little sex, you're not gonna... You're not gonna have time to write all those reviews. What it means to be a Yelp Elite, is that you, every now and again, will have the opportunity to go to... Um, they're called Elite Tastings. So, there's like a little, like, appetizers and stuff like that, all the way on up to really fancy tastings at, like, Michelin star rated restaurants. Those ones are more rare, but they happen. We actually bring these people together uh, every few weeks for parties that we call... We have this Yelp Elite Squad and we bring them together, and they get to meet each other. And it's working professionals, just like you and me. [Renee] You get to meet the chef. They give you appetizers, their entrees, various other things that they really want you to try, along with drinks and so on. So, this could be something where a restaurant may be wanting to premiere a new menu. Or I think it could be like, blossoming business and they want to, sort of spread the word. And then, sometimes, it really is just a treat for the Elites. And that rhymes, but... They hold more weight than someone who's written, say, 20 reviews. The interesting thing is that I find just as many inaccuracies and a lack of knowledge about the food they're writing about, in the Elite Yelpers. A Yelp review is like gold 'cause if you get a five-star Yelp Elite, it's there forever. They can give me 20 stars on Yelp and I will poop on it. And they do nothing all day except write these reviews. How these Yelp Elites have all this time on their hands to write these unpaid, prejudiced reviews on any whim that pops into their head... "Oh, the sauce was too garlicky. I don't like that. One star." Like, "I'll just ruin any small business." I can't. I can't... I want a company that's a mature adult who takes accountability for their actions, and takes accountability for the actions of their Elite crew, who Yelp themselves describe as a pack of wild animals, in a leaked email. [Stolfi-Tow] The problem with the Yelp Elite, is the reviewers are just very naive to how small businesses are, and can be very arrogant. They're starting to wield this power, as well. Hi. Two of us for lunch, please. Yes, right away. Oh, and, uh, I just wanted to mention that my wife and I are Yelp reviewers, so, uh, your best table, please. Oh, jeez! You guys, too, huh? Okay, um... I'll get you set up right over here, okay? [Cartman] Mmm-hmm! Hmm, this place seems nice. I guess we'll see. I guess we'll see, won't we? Oh, God! Now everyone thinks they're a food critic. What's this vindictiveness that Yelpers have? These one-star, like, "Ooh, I'm gonna destroy you." It's just such anti-social behavior. Once potential online reviews start to be used for leverage, for a discount on a project or something like that, then, you know, I think that's not the way even Yelp would have intended for their reviews to be used. My name is Ayesha Kiani and I owned a restaurant in New York with my mother. One of the things that I found out was how easy it is to buy reviews. I wanted media to pick this up that the reviews can be bought easily. I created an ad for Craigslist. I would get at least about 50 to 70 requests each time I posted the ad. A guy named Nelson Wu e-mailed and he said, "Hi, I'm interested in taking up your offer for writing a review. I use Yelp all the time, I'm an Elite, and could use some easy money." And I said, "How much will you charge?" And he said, "I'll be willing to do it for $50." A lot of the initial requests that came from, were from Yelp Elites. Some were very picky and very demanding. So they would say, "Oh, you know, I would have a meal, and I would also write your review. And then my per-hour rate is $50." [lively piano music playing] I own a piano shop. We are a full-service piano shop that does retail as well as wholesale and then, also, repair. [playing melancholy music] When we moved into this location in 2007, there were some issues. Next door to us is a tiny little ski shop. When they opened for business, there was no parking for any of our customers. So I complained to the landlord. And the landlord said, "Well, you're right. It's sort of gotten out of hand. How many spaces do you need?" Because my shop operates by appointment, and we usually only have one customer at a time. I said, "Really, all I need is one." So he said, "Well, that's more than reasonable. We'll dedicate one spot to you." We put up this big obelisk that says, "Piano store only. If you park here, well, you'll be towed." Still, a lot of people going into the ski shop would park there anyway, and not care. I complained again to the landlord. He said, "Okay, well, let's start towing them and see what happens." The first four people that got towed wrote a negative Yelp review. -[keyboard clacking] -[Gerald] In finality, I would say my experience at Applebee's was sublime and my treatment near that of a gladiator most decorated. But the street parking wasn't that great. Two-and-a-half stars. Yes. I didn't think that was fair. So, I called, and the girl I spoke to said, "Yeah, you know, I'm sorry. Freedom of the press. They can say anything. You know, we can't take it off. Or if it was a false thing, our algorithm would've caught it. So, you know, I can't help you." The next day, at ten o'clock in the morning I got a call from their advertising department saying, "Would you like to advertise with Yelp?" [playing lively music] I said to the girl, "Hey, why should I advertise with you when people who had parking were never in my shop, are writing nasty things about us?" She said, "Well, Mr. Kassman, don't worry. If you spend $400 a month with us, we can manage your reviews for you." And I said, "What do you mean?" She said, "We can help you with it. Don't worry. Just $400 a month and we can really make sure that your online reputation is absolutely fine." And I said not only no, "Hell, no." -[woman] Hi, Mr. Martinez. -Hello, hello. [woman] Is that knee getting better? -Yes, ma'am. -[woman] Good. [Dawn King] We had a former employee leave a fake Yelp message, um, as a retaliation for her being terminated. "I am a former patient of Dr. King, and I had a in-office surgery..." Their grammar, not mine. "...here, one year ago. Worst of all, she gave me an infection in my IV line, and I ended up in the emergency room, in serious condition. Dr. King did not inform me of the reason why I was sick. Her and the front-desk lady, Cindy, are AA members. I will never go back to this office, they nearly killed me." Just because the grammar and syntax had her fingerprints all over it, we knew who it was. This person has zero friends, one review. This was the first review that had no pictures, but... And one star. So it was allowed to be put on our page. I sent an email to feedback@yelp.com. Oddly, that afternoon I received a call from someone named Terry at Yelp. Um, I thought it was regarding the review, but it was regarding advertising. [Rossmann] We fix Apple products, primarily laptops. My business focuses on the products that other businesses and Apple don't want to fix. First sales call that I got, they did what they usually do, which is flatter you for what you're presently doing, and then try to talk about the benefits. And this just went on and on and on. And eventually, I just said, "Listen, I have a friend who pays almost $2,000 a month for your advertising and he has not gotten increased business due to Yelp." Then I get an email. It says, "I don't understand why you think Yelp isn't helping your friend's business. Here are his back-end stats." So because I claimed to be friends with somebody, you now see fit to send me all their personal statistics, so I can know how many deals they sold. I could see how many views he had, I could see how many calls to action he had. It's not information that I should be able to see. So, I uploaded a video about it. Just in case you can't see, it says, "Hey, Louis, here is the business Sunny has seen from us since he began to advertise. I am a little confused to why you think this isn't working for him. Please let me know when you can speak for a few minutes about this. Best, Erica." When you give away confidential customer information, why would I ever feel inclined to be your client? I upload that video and a few days later she is fired. I had no idea that this woman was fired until I received a phone call. [man over phone] I wanna congratulate you. You put a little stuff on the Internet last night about that Yelp. You ruined a 23-year-old's life. You got her fired. You know what happens to people that are shitbags like you? Bad karma. -[Rossmann] "Bad karma"? -[man] You get paid... Bad karma. God will pay you back, you piece of shit. -[Rossmann] Coal for Christmas is fine. -[line disconnects] I thought it was a joke that's why I said "Coal for Christmas is fine." And that's when I decided, let me Google this phone number and that's when I realized that that person works for a law firm called Sperber Denenberg & Kahan, PC. And I said, "Oh, you've got to be kidding me!" I really wasn't expecting Yelp stuff to go this far. So, then I did a second video. The name of that salesperson that was contacting me, I believe, was Erica Sperber. I wind up getting these calls, calling me a shitbag, and, "God is gonna get you back," and blah, blah, blah, from members of that person's family. And they were actually calling me from their work telephone. After that video is when I realized I had a negative review on my page. The fake review was left by somebody who said that we took their laptop, we didn't have the part to fix it, we gave it back to them in pieces, far worse than it was, and that was that. The first fishy part of this was that we have 600 parts for that specific machine. The machine that was mentioned is... You literally are tripping, walking through the store because I bought 600 of that part. Second thing that was fishy was that your profile says that you're in, I believe, Chicago, which is very, very far away from New York. So I looked this user up on Yelp and I see that they're friends with Erica Sperber. This is my Yelp salesperson. This is Jordan K. This is Erica's friend. This is the person that left the bad review at my local business. So, what happened here is simple. Uh, I told the Yelp salesperson I don't wanna pay for advertising. I told them why I didn't wanna pay for advertising. I hung up, and when they refused to stop contacting me, I posted a video about it. That person decided to tell their friends, that are Yelp Eliters, "Hey, you should leave bogus bad reviews on this guy's page." And then bogus bad reviews were left on my page. That is extortion. Once we went IPO, so much changed so fast. The company was expanding so quickly, globally. I was, you know, sensitive to the stress, and I ended up getting shingles a couple times, I couldn't get rid of it. There was an increased awareness of the money being the most important thing, instead of the values being the most important thing. Instead of the local business owners being the most important thing. [Rossmann] Yelp endorses this type of culture. It's, you know, this boiler room sales environment with a lot of young people who have a low base pay, who are really encouraged to get results or get out. And what do you think they're going to do? Yelp's management clearly doesn't believe that the buck stops with them, because what they are doing is they're saying, "Well, that person was acting independently. That's not our policy and, you know, we fired them. So, there." And no, that's not fixing anything. Erica Sperber is not the problem, she was just following a company culture. She worked there for several years, she was young, in her early 20s, probably one of her first experiences in sales. And that's the company culture she worked in. It's the 30, and the 40, and the 50-year-olds, and the higher-ups in the company that are hiring these people, that should realize it's their responsibility to influence the company culture so people don't do that. They're not fixing anything. They're avoiding liability. [reporter 1] Recently, Yelp has been on the war path, cracking down on small businesses who offer incentives in exchange for Yelp reviews. [reporter 2] They display the evidence for all to see, a kind of scarlet letter of the Internet age. You know, this is an ongoing cat-and-mouse game. People are always gonna try to game the system. [reporter 2] A very powerful system. Yelp gets more than 71 million visitors a month. [Sollitto] This is not acceptable behavior. And frankly, it's not just unethical, but it's probably illegal. [Teran] So a few days after telling a sales representative I don't want to use their service, our Yelp page got spammed with 15 of the same reviews, stating the same exact thing. We had great steak and we had the best secret sauce. And we don't carry a steak, and we don't have a thing called secret sauce. I reached out to our sales representative. And rather than the algorithm detecting that as spam, they saw it as if the owner or someone from the business was putting up those reviews. A couple of weeks after that spam hit our account, they put up a large pop-up saying that someone from the business could be artificially inflating reviews. We identified a number of businesses that we had caught red-handed in this activity. And we put up a big, you know, a very large alert on their page to let consumers know that something was awry. Of course, you know, we're building a review filter, so it's taking off this content in general, anyway. But we wanted to make the statement out there for consumers that they could know that this business owner might have not been acting in their best interest, and they might want to patronize other businesses. And on top of that, you know, we wanted them to see for themselves what exactly we had found, so we can be as transparent about it as possible. Now they're naming and shaming businesses who do that, which is really ridiculous. I mean, you're a multi-million, publicly traded company. What are you doing, naming and shaming anybody? That's playground antics, like, grow up. Like, honestly. [laughing] It feels like it's being operated by a two-year-old child having a temper tantrum, sometimes. To top it off, the 15 reviews that were spam got hidden in the unrecommended. So, when people would see the consumer alert that came up on our page, they don't understand it. Because they don't see the 15 reviews that got spammed. People were asking me, "Why do you have this consumer block on your page?" I would wake up every morning, just hopeless and in a dark place. Because there is nothing you can do and that's how they make you feel. I would call the representatives that I could from Yelp, because those were the only numbers I would have. Once it got to that point where I needed help, they basically just shunned me. They told me that there was no one to talk to here. They said, "You're on your own. You can email the tech services that they have on the Yelp page." Which I did, consistently. He told me that only Yelpers were the reviews that, if written, wouldn't be filtered because a number of the negative reviews was the only review they had written. And so, obviously someone went on to Yelp, created an account just to write a negative review about my business. So, if they're writing a negative review about my business, and it's their only review ever, it didn't get filtered out. But if we had customers that were really happy and we told them, "Hey, you're really happy. You know how you can help us with your really happy self? Go write a review on Yelp because most of the reviews that we have on there that are showing up aren't positive." But when those people wrote their first review about our business and it was positive, it got filtered out within a day. I had made up my mind that I was going to advertise with them, but they had two different programs. They basically explained that I could try to manage it myself, and probably waste a lot of money in the process as I was figuring it out. Or, you know, sign up with them for six months, spend a little bit more, but have a professional team of experts, advertising experts, do it for me. Um, to me, that sounded like a great deal, you know? To have, like, a whole team of ad execs, like, working on my... My profile or my campaign. I've spoken to sales reps. And they reached out to me, and I played... I just wanted to kinda see what their sales pitch is. They don't know much about what they're selling. They really don't. They don't know the distinction between clicks and impressions. As a marketer, my job is to watch out for my client's businesses. I want them to grow, that's how we win. Let's take a look at this chart. Our client bought 1,100 impressions per month for 486 bucks per month. Between July 1st and July 6th, they delivered 1%. Well, 1% of 1,100 is 11. So, in six days, they got 11 impressions. Now, remember, impressions are just, "Hey, Yelp showed our ad." July 28, they delivered 47% of the promised 1,100 impressions. That is just three days left. They haven't hit half of what was promised. Red flags are going off. I'm thinking, "How are they going to deliver the rest of those impressions in the next three days?" By the 30th, they jump to 89% and it's a miracle! By the 31st, they cram everything in. [Vitol] They manage the impressions in a way to either speed up the clicks or slow down the clicks, so that it would last approximately three weeks. We always met our budget, their algorithm makes sure that you spend every penny of your budget. Regardless of the amount that I was paying per click, they always managed to get every single last dollar out of that budget. But it always lasted exactly three weeks. It never went over three weeks, it never went under three weeks, and that was something they never explained to me. This is where I got really annoyed on behalf of my client. 'Cause what this means is, in two days, it delivered 43%, which is 473 impressions. That's 236.5 impressions per day. One-point-eight, and it jumped to 236.5. That's a factor of ten right there. That's ridiculous. It's horrible, because what this is telling me is, all they care about is, "I wanna deliver these impressions. I don't care how, I don't care to whom, I don't care where." [Vitol] I asked them, "How is this done? Like, how specific can you narrow down the customer base? Because my customer base would be within a half-mile of me. Is that something you can do? Is that a demographic you can do?" And they said, "Absolutely. We can make sure that viewers within a half a mile or a mile of you can find your business whenever they do a search." And it would also appear on "local businesses" as well. They were very specific in their promises, but once I signed up with them, their answers were vague. All of a sudden, it became... A lot less specific, let's just say. I had ads not only in this area, but in Manhattan, Queens, Westchester, New Jersey... Nobody is going to wake up in the morning, and take their dog for day care across state lines or even across from Manhattan to Queens or Brooklyn. No. I got exactly zero increased business from advertising on Yelp. [Fong] Ad one and two, that's a good, high quality location for ads. As soon as somebody clicks on there, they don't have to scroll anywhere. As you scroll down the page, there will be lower quality ad positions. Keep going down, keep going... Boom. Right here. These two ads, lower quality. Because not everybody scrolls down the page. Keep scrolling down, keep scrolling down, keep going, keep going, keep going, look at this. There are two more ads down here. Gutter ads. Few people ever see these two ads. And yet, guess what? They still count as impressions. Whether people see them or not, it doesn't matter. They're still impressions. My suspicion is my client's getting garbage impressions. Meaning their ad's really not doing anything. They're paying for garbage. It's just so Yelp can make their quota and continue charging my client their monthly fee. I'm not okay with that, and you, as a business owner, shouldn't be, I think. Many of the bad reviews that we've seen come on and be featured prominently on our page, like, within the top five reviews, would be after we've had some kind of "no sale" with one of the high-pressure salespeople that calls us. It seemed like a lot of the time the ads that would be placed would be outside of your key demographic. So I'm in Arlington, Virginia, I have a computer services business and yet my ad might be featured 100 miles away in a non-related category, say plumbing or baby clothing or something like that. And that led me to believe that this was not a good investment for my company. You're paying an exorbitant cost for very little visibility. [Roger McManus] Once they see what they get for their money, they realize it wasn't necessarily a good deal. The salespeople say, "You're gonna get 1,500 impressions." Now, the problem is that business people who are in the business of doing pizzas or dentistry or auto repair, or whatever, are not sophisticated buyers of advertising. So when they hear the number 1,500, they think they're gonna get 1,500 new customers. That's not even remotely close. I cannot say that we pay and we have better rating. "Nothing changed, everything's cool, didn't work for us." So we end up with the... We end up the contract, we say we're not gonna renew it, and we finish. The problem starts when they start to call you again after a couple of months. And, "You wanna do advertising with us?" And, "Why you stop?" And everything... My suggestion is, like, never do advertising with Yelp because the problem is not when you do advertising or when you don't do it, the problem is when you do it and then you stop. Now, uh, you are in their target, you can't get out. [Sollitto] But I can guarantee you that, uh, no one is required to buy advertising on Yelp. [Owens] Well, yeah, and that is the genesis of the extortion idea, that if you buy, all of a sudden you get the good reviews, you don't buy, you get the bad reviews. [Sollitto] That is the accusation-- [Owens] But how can every single person who makes that comment be wrong? [Sollitto] They are. It's pretty simple. There's three things I could tell you. Every single claim to that effect has been dismissed by courts five times. Uh, it's been investigated by the FTC twice, and closed. And frankly, there's a Harvard Business School study that did an academic study, that found that our software algorithm treats advertisers and non-advertiser reviews exactly the same. I think they're clearly misinterpreting the significance of the FTC closing their investigation. There are many reasons why an investigation is closed and it does not mean that they've received a clean bill of health. Over 2,000 complaints were filed by businesses that their rankings were diminished because they refused to advertise with Yelp. When I was the policy director of the FTC, I used to be in charge of the complaint intake unit. And I know what's a lot of complaints, and 2,000 complaints is an astronomical number of complaints. Usually, in most matters, you're talking about five, ten complaints. This was a real groundswell of concern by businesses about the way Yelp was running its business. [Sollitto] It's been investigated by the FTC twice, and closed. So, I've killed the thing dead six different ways from Sunday. The closing of an investigation does not mean that a company has received a clean bill of health. The FTC actually brings a relatively small number of cases. Maybe something like 15 to 20 a year. Maybe they saw a law violation there, but said that they don't have enough information to go to court and prosecute Yelp. This might be an area where the FTC is looking for, perhaps, the perfect case. So, even though Yelp's conduct could harm businesses and could be anti-competitive, they could still choose not to bring that case. There have certainly been many cases in which the FTC has failed to take action, which I thought that enforcement of action was appropriate. I find it really difficult to believe that Yelp didn't know about the investigation until they read about it in the press. Then the staff believes that there's a problem in the market, they contact the parties as soon as possible. When the Google investigation was going on, they tried to be somewhat transparent about the algorithm. I don't think Yelp's doing that. I think that's a suggestion that there's problematic conduct there. Where there's smoke, there's fire. Is there a concern on your part that there is a perception even that there are unethical practices going on? Well, we're not here out of fear. We're here out of facts, and making sure that they transcend this conversation. Um, dismissing the FTC, dismissing five federal judges who all found no wrongdoing. Dismissing an exhaustive Harvard Business School study. Though dismissing all of that seems a little weird, when all of it has very exhaustively debunked the claims. [inaudible] I looked over the Harvard Business study, and, in fact, I also looked at a previous study done by one of the same co-authors, also concerning Yelp. It's merely saying that there are some aspects of filtering that are predictable on the basis of the economic position of the Boston restaurant that's involved. But it's a limited study. It's only restaurants. It's only in Boston. It's only at a certain point in time. To argue that such a study debunks anything is to jump to far more of a conclusion than is really warranted from the amount of data, and the breadth, and the findings even, of such a study. It's a working paper at the moment. A working paper has not yet really been reviewed by peers, whereas a journal article is something that has been reviewed by peers, and gotten their seal of approval. The focus was on reputation. They hypothesized that restaurants that were in greater need of reputation would have greater incentives to create fraudulent reviews. More or less, that's what they found, as well. That chain restaurants, for example, had very few reviews that were filtered out, whereas restaurants that were one-person operations and had very few reviews, or bad reviews, were much more likely to have many reviews that were filtered out. The authors don't actually know whether they're fraudulent. They just know that they're filtered by Yelp. So your research shows whether you advertise or not has no bearing on how your reviews are filtered. What we're able to say is, something I would say is slightly less strong. There could be some very complicated process through which this happens. But there's so little transparency into what goes into these filters. And they said that they didn't have any access to the algorithm that Yelp uses. Yelp makes the algorithm difficult to reverse-engineer, for fairly obvious reasons, so not only did they not have access to it, but they had no real means of guessing as to what the algorithm, in fact, was. [Sollitto] Frankly, there's a Harvard Business School study that did an academic study that found that our software algorithm treats advertisers and non-advertiser reviews exactly the same. The study doesn't say anything like that. It doesn't really even look at who advertises and who doesn't advertise. And, moreover, it really can't make a judgement as to whether any of the filters are fraudulent or not. It has to just take Yelp's word for it. In fact, the study notes that there are almost certainly errors in the filtering, both false positives, reviews that were perfectly reasonable and legitimate that were filtered, and fraudulent reviews that made it through the system. But they can't tell. There are alternatives that are quite the opposite of debunking this, that are also completely consistent with the findings of the authors. [Ramzi Abadou] There are various investigations into Yelp, and have been. The Levitt case, which a lot of people know about. There's another securities fraud class action that's pending, here in the Northern district of California, called Curry v. Yelp. The allegations against Yelp had to do with extortion. Every one of the clients had been threatened with harm if they didn't pay money. Cases were filed in Chicago and LA, in Florida, and they all got consolidated in San Francisco. So I ended up with all the cases. This is not a smoking gun case. This is about a company who, they admit, forced people to pay money at the threat of harm. Now, that's extortion. If the mafia had done what Yelp is doing, they'd be thriving in every county, in every jurisdiction in the United States, by doing it over the Internet. The Ninth Circuit said, "Under California law, you can't win this case." The California Supreme Court has already ruled that this kind of conduct is extortion. [Abadou] Much has been made for the Levitt v. Yelp case. The Levitt case brought claims against Yelp for civil extortion. Civil extortion claims are very, very difficult to bring. It's important to really look behind the veil, and read the decisions, as opposed to just saying, "Levitt v. Yelp was dismissed, which means we did nothing wrong." That's certainly one way to look at it. But when you read the decision, there are certain striking things, which is really the court's sympathy for these small business owners. "We emphasize that we are not holding that no cause of action exists that would cover conduct such as that alleged, if adequately pled." It's another way of the court saying, "There's something here, it's not civil extortion. It may be breach of contract, it may be a misrepresentation claim, but there's something here." Now, the court didn't have to say that. But the court does mention its sympathy for the plaintiff's complaint. It just said, "You brought a cause of action that is extremely difficult to bring. Because you have to demonstrate wrongful misconduct." In the Levitt case, Yelp was represented by a very big, powerful law firm, called Gibson, Dunn & Crutcher. The chairperson, Edith Ramirez, of the FTC, was a former attorney of Gibson, Dunn & Crutcher. I'm not saying that anything untoward happened, but certainly the public raises an eyebrow, justifiably, when they see the cozy relationships between federal regulators, like the FTC, uh, and the private defense bar. [Owens] You're seeing more and more of these stupid people who somehow get a bad rating on Yelp, and decide they're gonna sue the person that actually wrote the rating. How does Yelp deal with something like that? [Sollitto] Well, we try to help our consumers who do end up on the wrong end of these lawsuits. Um, I think many small businesses kind of look for anything they can do, and, unfortunately, trying to sue your customers is not the best approach. Consumers do have free speech rights to express themselves and their opinions. My name is Chris Brody, President of Crescendo Designs, located in Southampton, New York. We were hired by Matt Apfel, who is married to Jackie Reses, to, uh, install... a control system in their house. Did some audio, some TV, and, uh, speakers throughout. We put the system in. They really had no problems. Later on, um... With no cause of concern, or no call to us of a problem, I noticed a review on Yelp, that, um, was a one-star review for our company. Yelp had to reveal to us who the reviewer was, and it turned out to be Jackie Reses, who was married to Matt Apfel. [Reses on phone] [Brody on phone] Hi, Jackie. [playing classical music] [Kassman] In 2010, somebody posted something that I felt was slander, on Yelp, and so, I sued in small claims court, to have the particular terminology removed from the review. I subpoenaed records for all of the one-star reviews between a certain day, because then his identity would have been revealed. So they, of course, rejected that, and wrote to the court and said, "No, you know, we won't comply with the subpoena." And, further, they locked me out of my Yelp account. I can't respond to any review that's on Yelp. I can't edit our hours. I can't say we're on vacation. I can't do anything. I can't access it in any way, shape or form. And I'm sure Yelp's response to that would be, "Well, people shouldn't have to, you know, endanger their privacy to leave a review." Yeah, they should. If you're putting someone's job on the line, if you're putting someone's reputation on the line, you should have accountability at that. It shouldn't be a free-for-all. It shouldn't be like, "I can write whatever I want and you're never gonna know it's me, ha-ha!" Even though I'm locked out of my account, and I can't respond to reviews, they still called me to ask me if I would advertise with them. Hey, good morning. This is Jocelyn over here at Yelp. I'm calling in regards to your Yelp needs. I would love to talk to the owner, in terms of the activity that's been going on in your current success. So go ahead... Go ahead and give me a call back. I'm excited to chat with you. I've used Yelp reviews. I've contributed any number of Yelp reviews. I'm a certifie... Registered Yelp user. And up until my experience with you, Russell, I trusted Yelp. It did not occur to me that anybody would be manipulating that to lead someone to think that, you know, the actual tide of public opinion said something other than what was really the case. I sat down and typed a really long review talking about the care that you took, and I so appreciated it. It's not abusive. It's not... You didn't pay me to do it. I was a genuine customer, and I was offended. [chuckles] I felt like somebody had questioned my credibility. I started calling law firms up in the city, because there are a bunch of them that take class-action suits, and I started saying, "This has got to be wrong." And one lawyer said, "Well, they are going to hide behind the immunity provided to online review providers, under the Communications Decency Act." [McManus] The Communications Decency Act was actually passed in 1995. When Congress protected Internet service providers through Section 230 of the CDA, they meant to protect people who were just passing information through. In other words, like Prodigy or... currently, like Verizon or Time Warner, they can't know what's going through their pipeline, and Congress very reasonably said, "You can't be responsible for that." What Congress meant was to protect people who were just sending things through a pipeline. What's happened now is that people like Yelp, and other service providers, have been redefined not by Congress, but by the courts, as being Internet service providers. People who are access providers... are simply people who allow people to get online. Those who moderate the content of their sites have more responsibility. The courts are not making that distinction, and that's the challenge CDA presents for people today. False speech is protected by CDA as the law is currently interpreted. They made such an enemy of their businesses. Instead of saying, "Hey, we're hearing you. We understand you're having problems," they created a problem with businesses trying to protect themselves and then punish the businesses for doing it. In the Nielsen Report, they say that 41% of the people are more likely to leave a negative review. So we have to ask people to leave positive reviews. If we don't ask them to leave positive reviews, they're just gonna come on and complain. In the real world, before Yelp, we had comment cards on tables. We had surveys, we would send newsletters out and ask, "Please let us know what we're doing right or wrong." And I think the misconception with Yelp is that they feel, "We just don't want any negative reviews." That's not true. Businesses will tell you, "We don't mind the negative reviews. We want to hear what we're doing wrong." What we don't like is that that's all that's there. [Abadou] The company went public to much hype and fanfare in 2012. Insiders between 2013 and 2014 at the company, including the CEO, sold $81 million worth of stock, at prices as high as $100. I think the stock is currently trading at $45. So this is a company, that, for whatever reason, is struggling right now. And rather than embracing people who criticize the company, perhaps justifiably, and engaging in a dialogue with them, what they do is they take their victories in court, which I view as very limited, and say, "See, we haven't done and we're not doing anything wrong." One of the problems, I think, with what Yelp is doing is the way they criticize people who criticize Yelp. Calling people who criticize the company, "fringe commentators," that's specifically from Aaron Schur, the head of litigation. I don't think that's fair. I don't think it's constructive. And I think it's a mistake to call small business owners who are trying to make a living, despite Yelp's influence, "fringe commentators." -[barking] -[Vitol] I'm really curious what percentage of Yelp's revenues came from small businesses. I mean, if they're willing to treat us so poorly, maybe we didn't represent a significant amount of revenue for them, and I looked up their public company, I looked up their financials, 85% of their revenues come from small businesses. Fifty-three percent of their total expenses, yearly, are spent on sales people, specifically to target the small business segment. They're a sales company. They're a marketing company. They're not a review company. They're just out to make sales. [Teran] What I decided to do to take orders into my own hand, I created a blog to let people know what was happening to our Yelp page. Where you can insert the name of your restaurant on your Yelp page, I would delete that, and insert it with the website. People would read it, 'cause people who would come into the restaurant later in the week would say, "Hey, I saw what happened to your page. It's really a shame." A writer from Fortune.com decided to write an article about what was going on with Yelp, and use my blog on her write-up that she did for the magazine. It made me feel good that my voice was being heard, because, at that point, no one was listening to me. And I decided to use that as leverage towards my sales representative from Yelp, and let them know like, "Hey, listen, you guys have done nothing for me. You guys let me suffer here for a while now, and nothing's being done. It's time for me to do something if you guys are not gonna help." Legit, three days after posting that I was on Fortune.com, everything was gone from my account. After four or five months of this being on my page, the alert wasn't there anymore. Our account was clean again. Emergency! I would like a table, inside the area with all the little plastic balls please, and make it snappy, I'm a food critic for Yelp. That does it! I've had enough! All you Yelp reviewers get the hell out of here! I don't care what happens to my business. I ain't kissing your asses no more! -[chair scraping] -Go on. Every Yelper, get the [bleep] out of here! Whistlin' Willy, he stand up to the Yelpers! We don't have to kiss their asses anymore! Look, everybody doing the same! [laughs] It's over! It's over! Hey, Skeeter, you hear the news? It's a miracle. It's a miracle! [Cerretini] What I did is start a percent off for one-star review, for the only reason, to screw them. There was no other reason to do it. I'd much rather to pay my customer, it's gonna cost me more than $300 a month, but I much rather to give my customer a discount, to give them the middle finger, than be forced to pay a protection fee to them. We could not even imagine the success that had the campaign of the one-star review. We got the attention of the media. We went in Time magazine, USA Today, Important people in Italy, France, Spain, Qatar, the response was great. We got 2,300 reviews in just a few days. The success was unbelievable. Well, I gave the middle finger to them, and I got one star only, and increased the business for 40%. [reporter] Business is booming. They racked up eight pages of new reviews in less than 48 hours, most of them one-star ratings with snarky or positive comments, ranging from, "My food arrived before I wanted it," to, "Love the campaign," and, "You earned a new customer." [Lane] There has to be some accountability for what you're gonna put on Yelp, and what you're not gonna put on Yelp. It seems to be there's some secret mystical algorithm that's on, like, Dr. Moreau's island in the middle of nowhere, and they're the only ones who know about it, but it's totally legit. Well, that's not working, and if it means that you have to hire people to sit down and read reviews that people flag as offensive or whatever, there's obviously some kind of inherent failure in the way that it's set up, and it would be responsible for them to really understand the impact that their reviews have on people, on businesses, on consumers, because consumers have changed the way that they approach restaurants since Yelp. And, yes, it's good that there's somewhere we can go, and we can say that, you know, "The service was really rude, I found a cockroach in my food, this is really bad." But at the same time, if you give people so much of a sense of entitlement, there's gonna be abuse. And it's your responsibility, you created the monster, you need to contain the monster. I think the biggest thing that Yelp could do is to issue a formal public apology basically saying, "Look, guys, we messed up. We didn't necessarily create the product that we had hoped to, we're gonna go back to the drawing board and we're gonna start adding some validation." So that when someone comes in and does business with a company, and they're ecstatic or they're aggravated, they can go and validate that that was a legitimate transaction and post their feedback. Without that, I feel like Yelp is misleading the public, because they're saying, "These are real reviews by real people," but on the other hand, on the back end, they don't require you to have a real identity, a transaction, or have ever gone to that business establishment. Yelp, right now, operates as an advertising company and not a review company, and if they shifted gears into a review company, I think that would be... Priority number one is making sure we actually have reviews. Real reviews by real people. It's like Yelp has created a fire, and they're selling the water to put it out. Thousands, and I mean it, thousands of businesses, they reach out to us, through e-mail, through phone call, uh, it's unbelievable what I heard from people. Not many people can do what we do. You need the right attitude, you need the right customers, and you need to be established for many years. Yelp knows that. All you have to do is get the right champion in Congress to be able to carry it through and do the right thing. That's where the law can be changed, very slightly, very incrementally, it doesn't have to be cataclysmic, it doesn't have to go to the Supreme Court. Just take this law, look back and see where Congress intended it to be. Protecting the pipeline, not the people who are at the other end of that pipeline, and then manipulating it to make a profit. The importance of this film is to build awareness that it's happening. And if it hasn't happened to you yet, it may. It's up to you to decide. You wanna be Botto Bistro, or you wanna be a coward that pay their protection fee? [Vitol] If every small business in America decided to boycott Yelp tomorrow... it might get their attention. [Cerretini] We became a voice for the people that, actually, until now, they didn't have it. 'Cause nobody listen to the business. Nobody. We are glad that we did our part to open their eyes. Nobody like to see a $10 billion corporation controlling this little guy. Here, we have ten tables. We are hard-working people. And our intention is not to pay a penny for a better rating. If tomorrow, hundreds of business, they start to do what we do, Yelp will last two days, because they have no power over you. Excuse me... We have questions for you. We could have lunch. Oh, fabulous. [woman 1] Vince, could you answer a few questions? [woman 2] I don't think he wants to talk to us. [man] There's a guy recording us right there. -[woman] There is? -[man] Through that door. [woman] Yeah, it's through the door to the left. Excuse me, do you guys work for Yelp? Hi, excuse me. Do you work for Yelp? Uh, yeah. -Would you mind answering a couple of questions? -No, I can't. Sorry. Hi, do you guys work for Yelp? Uh... -Hi, I see you work for Yelp. -Yeah. Would you mind answering a few questions? -Uh, sure. -Oh, awesome. -Thank you. -Oh. -What do you do for Yelp? -I can't talk. -Okay. -Thank you. Thanks. So, around the corner, you see him telling people to go away. We'd love to have the chance to speak with Yelp? Uh, if you guys would be willing to answer some questions regarding the claims made by business owners. Yeah, I don't think anyone's gonna come down and talk to anybody today. Okay, could you talk to us? -No, I can't. I can't do that, sorry. -Why is that? -Huh? -Why not? Because it's not my job. What is your job? You're not just a door holder, are you? [man] Yes. |
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