BA-206
Current Event
Reviews and the fight over Free Speech vs. Fairness
Tort:
Defamation
(An all-encompassing term that covers any statement that hurts someone’s reputation.)
Libel
(Defamation written and published.)
Parties Involved:
Yelp Inc. is a multi-international company based website that operates a “online urban guide” and
business review site.
Online urban guide:
“Yelp Inc. operates as an online local guide that connects people primarily with boutiques,
mechanics, restaurants, and dentists. The company’s local advertising services include free
online business account that enables businesses to view business trends, use the revenue
estimator tool, message customers, update information, and offer Yelp deals and gift
certificates; enhanced listing solution, which eliminates search advertising from the businesses’
profile pages and allows to incorporate a video clip or photo slide show on the pages; search
and other ads services; and call to action, a feature that allows businesses to promote various
transaction. It also offers brand advertising solutions, such as traditional display advertising
comprising graphic and text display advertisements on company’s Website and mobile
applications; and brand sponsorships for various national brands from automobile, financial
services, logistics, consumer goods, and health and fitness industries comprising traditional
display advertising. In addition, the company provides Yelp platform, which allows consumers to
transact directly; online reservation services in restaurants and nightlife venues; Yelp deals, a
product that allows local business owners to create promotional discounted deals for products
and services; and gift certificates products for local business owners to sell full-price gift
certificates directly to customers.” [7]
Hadeed Carpet Cleaning Inc. is an in home & office cleaning service that specializes in carpet cleaning.
Company is based out of Alexandria, Virginia. Average customer service is 35,000.
Complaint:
Hadeed Carpet Cleaning Inc. claims they have been a victim of a defamation campaign of negative Yelp
reviews that resulted in the loss of 30% of sales in 2012. Their usual clientele services declined from
29,000 to 20,000, and a loss in revenue of 12 million dollars in 2011 to 9.5million dollars in 2012. In
addition, laying off 80 workers and downsizing vehicle fleet by six trucks.[2]
Hadeed Carpet Cleaning Inc. claims that a comparison of the negative reviews to customer service
details (dates, locations, and times) and receipts show discrepancies and indicate that there are at a
minimum of seven reviews that are fraudulent and the company claims that these reviews are
potentially placed by competitors. One specific review is an out of state posting where service is not
even provided.
Additionally, Hadeed Carpet Cleaning Inc. claims that Yelp Inc. contacted Mr. Hadeed and offered
advertising in which was declined. Since the declined offer the negative reviews had started posting on
the Yelp Inc. website.
Reply:
