Yelp has filed a lawsuit against a California based law firm called McMillan Group. McMillan allegedly wrote phony positive reviews about themselves.
In 2010, McMillan Group received a negative rating that said ?Would never recommend. Didn?t abide by their own agreement. Communication was very poor.? Shortly after that review was posted, the firm received many positive reviews and Yelp believes that many of them were the firm’s own employees. Yelp said that this kind of behavior threatens the integrity of their organization and their own existence.
Yelp cites four misdeeds in the lawsuit, which includes breach of contract, intentional interference with contractual relations, and two counts of California’s false advertising statutes. The breach of contract cites their terms of services, which says that there is a prohibition of submitting fake reviews.
Why did Yelp single out McMillan as one of the businesses to go after? Perhaps it could be because the McMillan Group previously sued Yelp. The McMillan Group claimed that they were coerced into entering an advertisement contract to receive favorable reviews on Yelp. The firm won an award of $2,700, but Yelp was able to successfully argue that McMillan’s case was covered by an arbitration clause in the terms of services. Even if this is not the reason why Yelp decided to go after McMillan, the law firm certainly raised a flag by filing that lawsuit again Yelp.