Yelp operates on a star rating system where users rate various companies and have the option to write a personal review of the business or service they received.
The appeals court ruled that the star rating system relies on users’ input and is therefore not created by the company. Under the 1996 Communications Decency Act, Yelp isn’t liable for content it receives from its users because it provides a “neutral tool” with which third parties can post online material, according to the article.
Douglas Kimzey, the owner of a Washington state locksmith company, filed a libel lawsuit against Yelp in 2011. Mr. Kimzey claimed the negative review he received on Yelp was actually for another company. He claimed Yelp transferred it to his business in order to force him to advertise with the website. Mr. Kimzey also claimed that the one-star review on the website caused him to lose 95 percent of his business, according to the article.
The appeals court said there were no facts to support Mr. Kimzey’s claim that Yelp fabricated the content under the identity of a third party. The court also dismissed the claim that Yelp should be held liable for distributing content to search engines. Distributing content, the court said, is not the same as creating it, according to the article.
Mr. Kimzey said he plans to appeal the decision.
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