Guess Who’s Getting Some Pretty Awful Reviews: User Review Sites

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The trustworthiness of Yelp, Angie’s List, and other “unbiased” ratings services is called into question in a new study by Consumer Reports. And the consumer advocacy publication is hardly the only one taking issue with user-review sites lately.

By now, it’s universally accepted that online reviews can have a big impact on the success (or failure) of a business. According to one 2013 survey, 9 in 10 consumers said their buying decisions have been influenced by online reviews. A much-cited Harvard Business School study indicated that a one-star rating increase for a restaurant listed on Yelp translated to a bump in revenues of 5% to 9%.

Certainly, consumers rely on online reviews to help them make decisions about where to spend their money. But to what degree should we trust these reviews?

A new study by Consumer Reports tries to answer that question, taking a close look at a half-dozen online ratings and review services, including well-known sites like Yelp and Angie’s List, as well as smaller players such as Porch. The gist calls into question the validity and trustworthiness of all of these user-review sites. “Unsettling surprises came fast and frequently,” the report states.

(MORE: Alleged Fake Online Review Spammers Get Taken to Court)

Angie’s List, which only allows its two million paying subscribers to see (and write) local business reviews, is criticized due to its practice of allowing businesses with a B rating or better to pay to get their listing placed at the top of search results. “We think that the ability of A- and B-rated companies to buy their way to the top of the default search results skews the results,” CR researchers write. “Angie’s List misleads consumers by prominently promising that “businesses don’t pay” and that it’s a consumer-driven service supported by membership fees. But almost 70 percent of the company’s revenues come from advertising purchased by the service providers being rated.”

Google+ Local’s ratings are called into question because businesses can reach out to customers who’ve posted bad reviews and beg, bribe, make amends, or otherwise convince the aggrieved to change or delete the original opinion. “This can skew the ratings positively,” CR states “because assuaged customers can always delete their previously negative reviews.”

Then there’s Yelp, the granddaddy of user-review services that boasts 42 million reviews of local businesses collected over the years, and 108 million monthly unique visitors just in the first quarter of 2013. “Some data reveal that user reviews skew toward the positive,” CR says of Yelp. “Researchers at the University of Texas at Dallas and California State University, Long Beach, found that people who rented movies online were five times more likely to post a positive review than a negative one. And 66 percent of Yelp’s reviews for the first quarter of 2013 were four or five stars.”

While such data may be worrisome from the perspective of consumers seeking the unabashed, brutally honest truth, many local business owners have been complaining about Yelp for the opposite reason: They say Yelp’s filter system, which sanctions reviews deemed bogus or untrustworthy to a section away from the main results, sometimes winds up filtering out good reviews while keeping fraudulent one-star ratings.

(MORE: Why You Shouldn’t Trust Positive Online Reviews — Or Negative Ones for That Matter)

Over the summer, Yelp hosted town hall-style meetings with business owners, some of whom have been frustrated that what they claim are authentic customers reviews were filtered out, “leading to suspicions that they were being withheld because the owners didn’t advertise with Yelp,” as the Los Angeles Times put it.

“They told me if I want to have the good reviews on the top when you open the Yelp page,” one restaurant owner, frustrated with his business’s middling three-star rating on Yelp, said at a town hall meeting in Sacramento. “I’ve got to advertise it.”

It’s this perception of Yelp that has led to Yelp-bashing sites like Yelp-Sucks.com and this past summer’s Yelp manifesto on Buzzfeed, which explored whether the company is a blackmailing bully or merely understood.

Yelp says it’s most definitely the latter. The company never reveals exactly how the filter works because such information could be used by interested parties trying to game the system. (Lots try to do so, as seen in the user-review scandal unearthed in July, in which spammers were busted creating thousands of fake anonymous accounts in order to boost car dealership ratings.) Yelp maintains filtering occurs automatically based on objective data, and it’s never tied to advertising. “The first layer of this filter is trying to suppress any spammy, shill, malicious reviews that it can identify,” Yelp’s Morgan Remmers explained at the town meeting in Los Angeles. “The second layer that it’s evaluating is the user’s engagement with our site. So we’re showcasing the most helpful, reliable reviews.”

(MORE: Fact-Checking the Crowds)

Nonetheless, there are those who give Yelp and the “Yelpers” writing reviews exceptionally poor ratings. The most prominent is the Travel Channel’s Andrew Zimmern, who declared last year, “Yelp essentially gives a tremendous forum for a bunch of uninformed morons to take down restaurants.”

The fact that some people are so up in arms about Yelp and its business and review practices is itself a sign that the site is extremely powerful and influential. No one’s feathers would be ruffled if the site’s reviews didn’t have a big impact in the marketplace.

If the entrepreneur/angel investor/networking guru Peter Shankman is right, however, Yelp won’t be influential for long. Over the summer, Shankman posited that Yelp will be out of business within 24 months, because by then, people will realize they shouldn’t trust anonymous reviews from people they don’t know. He even put $5,000 on the line, saying he’d give that amount to charity if Yelp was still in business by August 2015. “We don’t rely on strangers to tell us what to do anymore,” he wrote on his blog, pointing out that increasingly, we can gather opinions from Facebook friends and others in our network—those who we know are real people, and have some reason to trust. “A business model that allows anyone to review, at any time, with no structure or background is a flawed model. There’s no reason for me to trust anyone I don’t know. It’s the INTERNET, for the love of God. Why should I?”

(MORE: The ‘Douche Card’? Now There’s an Official Way to Threaten Businesses with Bad Online Reviews)

The easy answer is that while only a fool would trust the opinion of a single stranger, millions of people are apt to trust the collective opinion of hundreds, or thousands, of strangers. Crowdsourcing has quickly become second nature, helping the masses use the masses to help decide which hotel to book, which movie to rent, and which restaurant to hit for dinner. Will this always be so? Probably. But if a smarter, more trustworthy form of crowdsourcing becomes readily and widely available, it would be easy to imagine consumers filtering out the opinions of total strangers.

12 comments
AnneSmith
AnneSmith

I am agreed with the writer. Most of the other review web sites are doing same. There must have some legal binding for stopping this misinformation and misguiding people.

rayhanripon
rayhanripon

thanks for sharing your ideas. 


Linkwiper may also make a solution for these. 




JennyWeston
JennyWeston

Who do you trust?  Friends? Strangers? Columnists?  ... "other"?       What is the agenda?  Yours? The business? Yelp et al's?     What is missing in my mind is a clear what-for-what.        I don't have an issue with people having an agenda - I have a big issue when they try to pretend that they are not driven by their agenda.  Jenny Weston. 

jaded44
jaded44

interesting and informative site.

SamGus
SamGus

Yelp is an extortionist in the true sense of the word. If you pay to advertise with them, they will post the positive reviews.  If you don't they will post the negative reviews of which most are anonymous and probably posted by them to coerce you to advertise with them.  The positive ones are usually "filtered" on the bottom of the page and not posted. Their excuse for not posting the positive reviews is lame. The very next day a salesman calls to try to sell you membership.  It is such an obvious coincidence every time, it is almost laughable.  YELP...You have been had.  We all know your Mafia tactics.  We can't wait till your site is shut down.

GTOJudge
GTOJudge

I verify what "brokererin" states about Angie's List, as I've talked to contractors about their business practices.  But there's more negative info that Consumer Reports and this Time author didn't uncover.  It's called their Complaint Resolution Process.  It's unethical.  If you review and rate a business member as a "C" or lower, AL contacts you to encourage the help of their case managers to resolve disputes.  It's a devil's bargain.  Because if they resolve the dispute to your satisfaction, they remove the negative review from the business's listing!  That's the deal.  And then AL asks you if you wish to rewrite the review, but it must be a "B" or "A."  Bear in mind that AL's advertising policy is to allow ads and coupons only from businesses that maintain an A or B rating.  So when you see all the businesses with A ratings, your skepticism is justified.  If that is what you intend, a heavy-handed shakedown of a business, then ok, it saves legal costs.  But if you wish to warn fellow consumers of your bad experience, then don't take it and seek other means of resolution. 

brokererin
brokererin

It's about time Angie's List and others get some negative reviews. My husband is a general contractor and has advertised on AL. Their ads are so misleading- "no one can pay to be on Angie's List."  Ummm,,,ya, they can...and they do- to the tune of about $520/month for basic advertising. And they've begun offering "Big Deal Coupons" to try and compete with Groupons, but on bigger ticket items like bathroom and kitchen remodels. Customers don't realize how much AL takes off those coupon deals for advertising- try 33% of whatever you paid for that coupon goes straight to Angie! And to boot, they are in complete violation of contract laws by taking full payment upfront for $5k, $10k coupons and then handing the contractor's share over even if work hasn't started. Contract laws allow $1k deposit and then progress payments once work starts. They will claim they're not acting as a general contractor subcontracting out to the contractors, but in reality, their actions say they are. They are creating huge liabilities for all parties involved in these deals. When consumers have an issue with the work being completed who do they complain to so they can stop work? If they hired the contractor directly they would work directly with the contractor to stop work, stop payments, negotiate settlements and disputes, etc.  With AL placing themselves as a middleman the consumer asks AL for refunds, which they usually always give without consulting contractor and then just deduct money from contractor's credit card/bank account. This harms contractor and skews who AL actually is working for and what their role really is. What's even better is their account managers call and harass contractors on their Big Deal about why they're not selling more coupons because all they want is their 33% cut of the coupons.  I'd warn everyone out there to stay away from AL! She's a waste of consumer money and consumers are not their concern- advertising dollars are! Absolute sham of a company!!

SteveAustin2
SteveAustin2

Lucian K Aldritch's Personal Chef Service

The following is the review of a customer who was delighted with our service

"Thank you so much for a fantastic meal on Saturday and please pass on thanks to Pascal for being such an excellent wine waiter, photographer, etc etc. He has such a bubbly personality and was so attentive it was a pleasure to have him with us for the afternoon.Thank you does not really cover how grateful I am. Every one commented on how good the food was and the size of the pear tart is still a talking point.
I could not have imagined it to be any better than it was and I realise how hard both of you worked.I have already passed your contact details to some friends and I would not hesitate to call on you again for another function.

Should you need a referral, I would be happy to speak to potential customers for you.

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DanielABernath
DanielABernath

Judges in California and Oregon have stated that Yelp is like the "Mafia" and "Organized Crime".  Judge Henry Kantor in Oregon said that Yelp's business model is "offensive".

The judge believes that the Oregon Attorney General has an investigation pending regarding Yelp's treatment of businesses and that Yelp's business model is "problematic."


FOOTNOTE:  Judge Henry Kanton, Oregon Circuit Court, Portland  October, 7, 2013 at 10:56



“ I’ve been watching and paying attention to what both Mr. Bernath said and actually other things out that I’ve read out what’s going on with Yelp   and the way its handing businesses it has business with.  I find it offensive, I know there are class actions pending…it would not shock me at all if actually Mr. Bernath gets some relief for the way yelp is conducting its business model.  I think (Yelp’s ethics are)  its highly problematic

If Oregon attorney general office has not initiated something I suspect they will.  I don’t thinks this is any shock.  Yelp knows this in a more sophisticated way then I do. In fact I believe there may be something pending.  And I think down the line Yelp has to change or its going to look like what Mr. Bernath describes it; organized crime.”

jake3_14
jake3_14

My hunch about the number of FB friends that any one person can rely on to guide their restaurant choices people is 25 or less — a very small data sample to begin with.  Out of those 25, the number one can get a trusted opinion on for any one business is probably half that, at most.  For specialty businesses that a person uses only occasionally, such as auto repair shops, event planners, etc., the number of FB friends one can get a trusted opinion from is probably 1 or 2. How else, other than gathering large numbers of strangers' reviews, are you going to evaluate a business you've never dealt with?