LOS ANGELES—For the second time in less than two weeks, a California small business owner has sued Yelp! Inc., claiming that the company’s online review site, Yelp.com, manipulates positive and negative reviews in order to coerce businesses to sign up for expensive advertising packages (LaPausky v. Yelp! Inc.).
Christine LaPausky, owner of Imperial Beach, Calif.-based D’ames Day Spa, alleged in her complaint that after she refused a Yelp representative’s “cajoling” to purchase advertisement on Yelp.com, positive reviews of her day spa business disappeared from the site.
LaPaulsky’s complaint was almost identical to a proposed class action filed against ...
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