Presentation1

Yelp Fights for the Right to Complain Anonymously

Yelp Fights for the Right to Complain Anonymously

May 20, 2015

Yelp Fights for the Right to Complain Anonymously

By: Ifrah Law

 

In e-commerce, user reviews can make or break a business.  Review sites such as Yelp are a double edged sword for merchants and service providers: on one hand satisfied customers can generate buzz about the company and bring in new customers, and on the other hand dissatisfied customers can use it as a very public platform to air their grievances and discourage new business.

Review sites such as Yelp maintain policies protecting users’ anonymity, a major source of frustration among business owners.  By remaining anonymous, users can make potentially defamatory statements and leave the businesses with little recourse to hold the individuals accountable. A recent ruling by the Virginia Supreme Court has demonstrated the long and tortured road that businesses must take to challenge the anonymity of these unnamed users.

In 2012 a small Virginia company, Hadeed Carpet Cleaning Inc., brought suit against unnamed Doe defendants for allegedly defamatory statements published about Hadeed on the Yelp review website. According to Hadeed, a number of negative reviews did not match up to records of the company’s existing customers, and therefore the company suspected that the false statements were published by individuals who had never used the company’s services.  The Circuit Court for the City of Alexandria, Virginia, issued a subpoena to Yelp requiring it to provide identifying information about the anonymous users.  Yelp refused to comply, and the Circuit Court held Yelp in contempt.

Yelp appealed, arguing that the court’s order violated the First Amendment by forcing the company to identify the anonymous users. In January 2014 the Court of Appeals upheld the Circuit Court’s order, applying a six-prong procedure Virginia’s “unmasking statute,” which provides that the court may issue a subpoena to unveil the identity of an individual speaking anonymously over the internet where (1) notice of the subpoena was served on the anonymous speaker through his internet service provider, (2) the plaintiff has a legitimate, good faith basis to contend that communications may be tortious or illegal, (3) other efforts to identify the speaker have been fruitless, (4) the identity of the communicator is important, (5) there is no pending motion challenging the viability of the lawsuit, and (6) the entity to whom the subpoena is addressed is likely to have responsive information.

The Court of Appeals noted that Hadeed had followed the proper procedure in requesting the subpoena. The court found that the company’s evidence that the reviews did not match customer records was sufficient to establish they were not published by actual customers of the company, and were therefore likely to be false.

Yelp appealed the Circuit Court decision to Virginia’s Supreme Court.  Last month, the Virginia Supreme Court issued an anticlimactic ruling dismissing the case on jurisdictional grounds, stating that the case should have been brought in California where Yelp is headquartered and where the responsive records are located.

If Hadeed chooses to resume the case in California, if will face a somewhat higher burden in obtaining the names of the users.  Notably, Virginia is the only state in the country to have enacted an unmasking statute.  In most states, the courts will no issue a subpoena until the plaintiff has established a prima facie case for defamation—significantly more than the “legitimate, good faith basis” used in Virginia.

Ifrah Law

Ifrah Law

Ifrah Law is a passionate team of experts that understands the importance of listening to and addressing specific concerns of clients – when facing the heat of a federal investigation or the ire of a business competitor. Experience in complex cases related to online gambling and sports betting, internet marking and advertising, and white collar litigation.

Related Practice(s)
Other Posts
How Thick is the Blanket? – Preemptive Pardons as a Presidential Power
White-Collar Crimes |
Dec 6, 2024

How Thick is the Blanket? – Preemptive Pardons as a Presidential Power

By: James Trusty
Temporary relief from compliance obligations under the Corporate Transparency Act
FTC Beat |
Dec 5, 2024

Temporary relief from compliance obligations under the Corporate Transparency Act

By: Steven Eichorn
Will Free Speech Become Expensive for Big Tech?
Dec 2, 2024

Will Free Speech Become Expensive for Big Tech?

By: James Trusty
Dolce Vita Ruling a Win for Cookies and Pixels Alike
Nov 21, 2024

Dolce Vita Ruling a Win for Cookies and Pixels Alike

By: Robert Ward

Subscribe to Ifrah Law’s Insights