Yelp Will Label Businesses Accused Of Racist Behavior

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Yelp announced a new initiative on Thursday to label businesses that users have reported for racist behavior.

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A screenshot of the new alert.

Yelp/Screenshot by NPR.

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Yelp/Screenshot by NPR.

A screenshot of the new alert.

Yelp/Screenshot by NPR.

If more reviews are coming in than usual, the company may put up a less prominent «public attention notice, warning the business «may be receiving an influx of reviews as a result of increased attention.

«Our team of moderators will investigate and temporarily disable content as we place an alert on the business’s page to warn users that some of these reviews may not be based on first-hand experiences, the Yelp spokesperson said.

«After we’ve seen activity dramatically decrease or stop, we will then clean up the page so that only first-hand consumer experiences are reflected.

The company said it placed more than 450 of the public attention alerts on business pages either accused of or the target of racist behavior from the end of May to September.

Consumers are also increasingly voicing support for Black-owned businesses.

The number of reviews mentioning Black-owned businesses increased by more than 617% this summer compared to last summer, the company said. Reviews mentioning women-owned businesses more than doubled during the same period.

Yelp only allows first-hand reviews — not ones spurred by online attention or media reports — which the company has had trouble with in the past.

In 2019, the review site removed at least 3,000 reviews that were either politically motivated or influenced by celebrities.

This year, Yelp reports a 133% increase in the number of «media-fueled incidents compared to the same period last year.

This isn’t Yelp’s first foray into tackling social issues with new features. In 2017, it allowed customers to find businesses that had gender-neutral bathrooms.

For companies, a bad rating can make a big difference.

Back in 2011, a Harvard Business researcher found on average, a one-star increase can mean up to a 9% increase in revenue.

Marketing software company Brightlocal surveyed more than 1,000 consumers and 82% reported using online reviews when looking for businesses. Those without 5 stars risk losing 12% of their customers, according to the study.

«Increasingly, consumers across the U.S. are voting with their dollars by supporting businesses that align with their values, Yelp said Thursday. «As always, we continue to evaluate how we can best use our platform to build a better, more equitable and inclusive environment.