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Yelp Founder Says "No Extortion — Just a Misunderstood Algorithm"

Early last year, a story in the East Bay Express reported that review site Yelp's ad sales force was using hardball tactics that amount to extortion — essentially, suggesting that negative reviews would remain prominent on the Yelp page for a particular restaurant or other business, unless the business bought advertising through Yelp, in which case Yelp could "do something" about the negative reviews. In a recent interview with the New York Times (the questions seem rather softball, but they do address this issue), Yelp co-founder Jeremy Stoppelman says it just isn't so, and blames unhappiness by business owners with the review site on the site's "automated and algorithmic" review-filtering system, which he describes as "counterintuitive." Stoppelman also says that Yelp's advertising salesmen have no connection to that filtering system, which doesn't quite answer the question of whether the salesmen claimed to be able to influence the reviews displayed, as some business owners allege. Updated 22:09 GMT by timothy: As reader AKMask points out below (now corrected above), that's the East Bay Express, rather than the East Bay Examiner.

21 of 120 comments (clear)

  1. A Misunderstanding? by WrongSizeGlass · · Score: 4, Insightful

    Sure it is ... the businesses they were extorting misunderstood that their voluntary participation was optional.

    Advances in technology, such as our precious intertubes, will always bring advances in criminal activity. I hope no one hears them yelp as they go out of business when their next round of venture capital begging fails miserably. If they want to deal on business' reputations they'll need one of their own.

    1. Re:A Misunderstanding? by WrongSizeGlass · · Score: 4, Insightful

      The co-founder of Yelpy McScumbags denies they were acting illegally? What else would you expect him to say, "Yes, we were committing extortion, but we needed to generate more advertising, but hard work & ethical business practices just weren't getting us as much revenue as we wanted"?

      Read the original stories about Yelp's tactics and practices. I can only hope they end up with both civil judgements and criminal convictions.

  2. new lie, same as the old lie by Anonymous Coward · · Score: 5, Interesting

    liars just won't fucking quit

    you quit yelp, all your reviews disappear, hows that for magic

  3. Re:Sham by mellon · · Score: 3, Insightful

    You might want to reconsider that. My wife and I use Yelp on the iPhone as one of our primary sources of information on how to get stuff we need when we're on the road. If you're not in Yelp, you're probably missing a lot of walk-in opportunities. If you're doing well on local advertising and reputation, great, but if you'd like to have more new customers, Yelp is actually a good way to make it happen.

    The problem with services like Yelp is getting good information out of them--unfortunately, the main motivation people have for writing reviews on the web is that they are pissed off, and so that tends to work against any place that ever has a pissed off customer, which is pretty much every place. So we tend to look for patterns in the bad reviews to see what they tell us, and also patterns in the good reviews to make sure they're not fake. It's worked out pretty well for us.

  4. Re:Sham by DogDude · · Score: 5, Insightful

    I'm betting that most people who are looking for reviews online are just going to use Google. It's free and ubiquitous.

    Regardless, online reviews are pretty pointless. They're anonymous and easily gamed by anybody on the planet. They're about as reliable as bathroom stall graffiti.

    --
    I don't respond to AC's.
  5. This is not news. by crhylove · · Score: 5, Informative

    Yelp has been bullshit for some time. It's a neat idea, but they've censored several of my negative reviews which were all factual.

    As such, Yelp holds no value.

    --
    I hold very few opinions. I hold information based on observation and fact. If you wish to disagree, please use facts.
  6. Hey, it's New York by Jawn98685 · · Score: 5, Funny

    It's not "extortion". That's such an ugly word. Clearly, there has been a misunderstanding. Yelp is merely offering "protection". You know, 'cause if youse don' have protection, t'ings coul' happen. You know, "t'ings". Maybe somebody trips and falls. Maybe a bun warmer overheats and there's a fire. Maybe people decide the food sucks and write about it. Like a whole lot'a people. You know?

  7. Re:Let's say it again, all together now by WrongSizeGlass · · Score: 3, Funny

    Blackmail is not extortion.

    Maybe so, but they are both sides of the same coin ... and we'd appreciate it very much if you'd give that coin to us .

  8. I almost believe him by jim_v2000 · · Score: 5, Insightful

    Salespeople are the biggest fuck-ups you'll ever work with. They always make all kinds of bullshit claims about a product that you, if you the technician, will get to correct and thus take the wrath of the customer. I worked in a tech support call center a few years ago and I'd always get two or three calls each day where the customer would complain that the sales person told him that the program did X and Y, but he couldn't make it do X and Y. I would then inform him that he was misinformed and the program really did not do X and Y, and then I'd sit through a barrage of abuse directed at the company.

    --
    Don't take life so seriously. No one makes it out alive.
  9. Stoppelman doesn't get it by sweatyboatman · · Score: 5, Interesting

    My first reaction on hearing about the lawsuits against Yelp was to lump it in with the idea of suing Google because you don't like your search position. But the more I read from the Yelp side of this, the shadier their practices seem. And this article, while pretty fluffy, did nothing to improve Yelp's standing in my eyes.

    In fact, it made me think that beyond everything else, Yelp just doesn't get it. Stoppelman sure doesn't:

    When a consumer encounters a business’s page, the reviews they’re seeing aren’t necessarily every review that’s been written about the business. It’s a selection of those reviews. It ensures that the consumer sees generally useful, trustworthy information that gives them a good idea of what to expect when they patronize that business.

    So they have an "algorithm" that randomly and seemingly arbitrarily changes what reviews are visible on a business's page. Great, I am sure there are plenty of other sites that follow a similar approach. But there's nothing in there about any kind of system to ensure that their "algorithm" isn't abusive. There's no mention of oversight, nor of feedback. It'd be interesting to hear a general outline of how this "algorithm" does its thing.

    Of course, he follows up with this:

    The more that we explain about the algorithm, the less effective it becomes.

    Which makes it sound like either the "algorithm" isn't all that complicated or they don't exactly know how the algorithm works and they fired the guy who wrote it. On second thought, this just makes it sounds like they're making the whole "algorithm" thing up. Maybe "the algorithm" is twenty interns sitting in the basement sifting through reviews about coffee houses and dry cleaners.

    Any way I think about it, I cannot imagine using their service or trusting the reviews I read on Yelp.

    --
    It breaks my pluginses, my precious!
    1. Re:Stoppelman doesn't get it by droopycom · · Score: 3, Informative

      Of course, he follows up with this:

      The more that we explain about the algorithm, the less effective it becomes.

      Doesn't Google does the same thing with their pagerank algorithm ?

      When people know too much about the algorithm, they can game it.

      Same reason why credit scoring company wont release their algorithms... Well, they might have further economic motives for that, but still if I knew exactly how the algorithm for my credit score worked, I could certainly dramatically improve my credit without doing anything that actually show I'm credit worthy...

    2. Re:Stoppelman doesn't get it by 10101001+10101001 · · Score: 5, Insightful

      When people know too much about the algorithm, they can game it.

      Same reason why credit scoring company wont release their algorithms... Well, they might have further economic motives for that, but still if I knew exactly how the algorithm for my credit score worked, I could certainly dramatically improve my credit without doing anything that actually show I'm credit worthy...

      The fundamental problem is that such algorithms are based on taking a small bit of information and extrapolating a result from it. It's fundamentally the reason why benchmarks are often both gamed and a very bad way of actually understanding the products being measured. The answer to the problem has consistently been shown to be not to withhold information about the way a benchmark is made, since invariably people will find a way to reverse engineer the algorithm and game it anyways; the answer is to further refine the benchmark to take more and more samples until the point that even if the benchmark is incomplete at measuring things, anything that tried to game the benchmark would still be very close to meeting what the benchmark is meant to represent.

      AFAIK, that's primarily what Google has done with the page ranking algorithm. If Yelp is really worried about having a good review system, they should focus less on trying to hide how their algorithm works and more on improving their algorithm to guarantee it works. In the end, they'll remain ahead of any competitors so long as they can maintain a consistent lead on quality through such efforts. Any other mindset really is based in a belief that one has some sort of monopoly that can't be replaced. It's one of the reasons why complacent middle management, which is primarily a byproduct of large corporations, kills most corporate monopolies.

      --
      Eurohacker European paranoia, gun rights, and h
  10. Re:New maximum by Anonymous Coward · · Score: 3, Funny

    You're currently rated "Troll". Write to me to get your point across more effectively. How does +6 "Awesome" sound? Send email to: lockinsubscriptions@cmdrtacoretirementfundslushdotfund now!

  11. Thin Skins by fm6 · · Score: 3, Interesting

    I can't be bothered to dig up the link, but there was a story about a restaurant in San Francisco that was so mad at Yelp they had all their employees wear satirical shirts. I looked up that restaurant's Yelp page, and discovered a large number of extremely positive reviews and the usual comments by people who hate everything. All in all, Yelp is a big driver of business for these people. Some people just go ballistic at the slightest hint of criticism.

    One thing that does bug me about Yelp is the way people suddenly develop enthusiasms for businesses of limited merit. Three or four times I've gone out for lunch based on Yelp reviews and been a little puzzled as to what all the fuss was about. One was a Halal restaurant that serves OK food, but is a little on the pricey side for what they serve. (Following religious law in food preparation drives up the overhead a bit.) Needless to say, the staff are a little confused by this sudden influx of non-Muslim customers!

  12. Re:Sham by Hatta · · Score: 5, Insightful

    Regardless, online reviews are pretty pointless. They're anonymous and easily gamed by anybody on the planet. They're about as reliable as bathroom stall graffiti.

    Do you have a better option for someone just passing through who just wants a nice place to eat? The only alternative I'm aware of is the back of the phone book. With online reviews, I can check a few sites and mostly figure out whether it's the kind of place I'm going to like. Back of the phonebook is a total crapshoot.

    --
    Give me Classic Slashdot or give me death!
  13. He's lying by Anonymous Coward · · Score: 5, Interesting

    He's not even bending the truth. Yelp is a scam for business owners. The sales people can and do influence the ratings directly. I've personally seen this with my business's reviews and have talked to Yelp sales people.

    I had 5, 5 star reviews, got a 6th review with 4 stars, amazingly about a week after that review, I got a call from a Yelp sales person saying that he's taken care of that review and if I'd like that to continue that it would cost me $300/month (their lowest cost plan). That payment would also keep my competitor's information from being displayed on my page when visited.

    I blew them off yet again and that 4 star review showed back up.

    I like the concept, but Yelp would only be useful if it wasn't a company trying to generate revenue for themselves standing behind it. A "community based" review system will only work if

    1) people can't post anonymously or if they can then negative or positive anonymous reviews don't hold much weight

    2) there is a review system in place to dispute slanderous claims.

    3) there isn't a company behind the system trying to make a buck off of selling advertising.

    and probably a 1/2 dozen or more other things in place. Nothing is perfect, but Yelp is useless if you want honest reviews about a business and that business happens to be a paying customer of Yelp.

  14. Re:Experience shows that they most likely don't... by cduffy · · Score: 3, Informative

    Weeks later, the review is still up, along with other similarly low-rated reviews.

    Maybe, or maybe not; Yelp's filter always shows reviews to their authors, even if hiding them from everyone else.

  15. Highway robbery by yerktoader · · Score: 5, Informative

    I know a gent from Vietnam who runs a small restaurant. Super nice dude. He directly and flatly stated Yelp told him they would make the negative reviews prominent and fake more if he didn't cough up the dough. He could be lying, but what would he gain by telling a random customer?

    Fuck Yelp and it's snobby yuppie fans.

  16. Re:Sham by lul_wat · · Score: 4, Insightful

    I walk up to a local person and ask them what they would recommend. If it doesn't sound appealing then I ask the next local. It's not rocket science but it might be a bit of a leap. Most people are happy to tell you as you've asked their opinion on something and it boosts their ego to think they are a subject matter expert (which they are in this case as you know flat zero about the local food)

    --
    Divide a cake by zero. Is it still a cake?
  17. the algorithm by sohp · · Score: 4, Funny

    looks something like this:


    if (business_has_paid_for_ad) {
        review_minimum_threshold = 5;
    } else {
        review_minimum_threshold = -1;
    }

  18. He's not lying by Anonymous Coward · · Score: 4, Interesting

    Hi. I'm an engineer at Yelp. I know for a fact that salespeople cannot influence reviews in any way. They have no access to the internal Yelp administration pages; they use a separate Salesforce site for doing their work. In fact, they are not even allowed to post reviews to the site.

    Obviously I did not hear the conversation you had with the Yelp salesperson, but it would be VERY surprising if they suggested they could influence your reviews. Every new Yelp advertiser gets an orientation call within days of signing up for advertising. As part of this call the advertiser's account manager goes over the fact that advertising does not influences reviews in any way. If a salesperson were suggesting that they could influence reviews, the account manager would find out during this call and that salesperson would be fired. See this blog post for more information: http://officialblog.yelp.com/2010/03/additional-thoughts-on-last-weeks-lawsuit-or-how-a-conspiracy-theory-is-born-.html

    As to your other points:
    1) The entire purpose of the review filter is to make untrusted reviews hold less weight: http://officialblog.yelp.com/2010/03/yelp-review-filter-explained.html
    2) You can respond both privately and publicly to reviews of your business: http://www.yelp.com/business/review_response
    3) I think that we can make a useful site and use advertising revenue to pay for our meals. At least Google has managed this feat, so it is not impossible.

    We try really hard to make Yelp a useful/funny/cool site that balances the needs of both business owners and consumers. We definitely don't always make everyone happy, but we are always listening to feedback and trying to make things better.