Class-Action Lawsuit Filed Against Yelp

A class-action lawsuit was filed against Yelp by two firms in Los Angeles federal court yesterday. The lawsuit alleges unfair business practices against the San Francisco-based user-generated review site, and, in particular, that the company “runs an extortion scheme in which the company’s employees call businesses demanding monthly payments, in the guise of ‘advertising contracts,’ in exchange for removing or modifying negative reviews appearing on the website,” according to the official press release.

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