Online reviews hurting your business?

Mikey P

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Contractor sues Virginia woman for $750,000 after she wrote scathing Yelp review



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Suing: Christopher Dietz says his construction business has lost $300,000 over the negative review on Yelp

Better think twice before you slam a business with a bad review on Yelp - one Virginia woman is being sued for it.
Jane Perez was slapped with a $750,000 lawsuit by Dietz Development after she publicly logged complaints about construction work the building contractor performed on her home.

In her write-ups on the popular business review sites Yelp and Angie's List, Perez accused the company of damaging her house, trespassing and stealing jewelry.

'Bottom line,' she wrote on Angie's List. 'Do not put yourself through this nightmare of a contractor.'
Perez is only the latest online critic to find herself in court over negative comments post online.

In 2009, a San Francisco man was sued by a chiropractor after he posted a Yelp review accusing the business of over-charging him. That suit was settled out of court.

A Chicago plastic surgeon sued three women in 2010 after they wrote online accusations that he gave them disfigured and misshapen breasts after surgery.
In September, a Pilates studio in Virginia sued two Yelp reviewers who complained that the business smelled like mildew and that the staff was unfriendly.





Free speech advocates say businesses are increasingly resorting to legal action to retaliate against negative reviews of their businesses.

Christopher Dietz, the owner of Dietz Development, said he had no choice but to file the lawsuit after he lost $300,00 when customers fled his business over the review, reportsThe Washington Post.
'The impact has been awful,' Dietz said. 'There is no one to protect businesses when people slam their name.'
He said he is not suing because of the negative review per se - he's suing because the allegations Perez made are false.

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Review: Perez posted a negative review on the popular site Yelp, as well as Angie's List, another business review site

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Allegations: Perez claims her townhouse in Falls Church, Virginia, (pictured) was damaged by the work Dietz did

REVIEWER BEWARE: BUSINESSES SUING OVER NEGATIVE WRITE-UPS

Jane Perez isn't the only Yelp reviewer to be sued after writing bad things about a business online. Free speech advocates say such cases are on the rise.


  • Christopher Norberg was sued in 2009 by San Francisco chiropractor Steven Biegel after Norberg wrote a Yelp review claiming he was overcharged for treatment following a car crash. Norberg and Biegel later settled the matter out of court
  • In 2010, Chicago plastic surgeon Dr Jay Pensler sued three women for $100,00 each after they posted scathing reviews on Yelp about his practice. One woman said he had given her 'Frankenstein breasts' in surgery.
  • September, the owners of Fuse Pilates in Washington, D.C., filed a lawsuit against two anonymous Yelp reviewers. One said the studio smelled like mildew, the other complained that the staff was rude.


'If it's negative and true, that's fair. If it's negative and not true, that's unfair,' he told WJLA-TV in Washington, DC.

Perez, a retired captain in the military, said she never thought she could be sued over something as common as a Yelp review.
'I don’t want to see what happened to me happen to anyone else,' Perez said.
She stands by her reviews, The Post says, and maintains that what she posted was truthful.
A judge in Fairfax partially sided with Dietz this week - allowing the lawsuit to proceed and ordering Perez to remove the parts of her Angie's List review that alleged Dietz Development employees stole jewelry.

Her lawyer says Perez's right to free speech and her right to express her opinion should trump Dietz's business interests.

'You should always have a right to free speech. She should be able to describe her experience with the contractor...she definitely told the truth,' her attorney said.
The stakes in the world of online reviews are increasingly high.

Yelp is primarily known for restaurant reviews, but it has branched out to include listings and customer evaluations for businesses of all kinds.

It has become a review powerhouse, with 84million visitors a month and 33million reviews.

A 2011 Harvard University study suggested that for each star a restaurant received on from reviewers on the site, the restaurant owners could expect a 5 to 7percent jump in revenue.

'NIGHTMARE CONTRACTOR': THE REVIEW THAT LED TO A $750K LAWSUIT

This is the text of Perez's original review posted on Angie's List in August 2012.

Overall: F
Price: F
Quality: F
Responsiveness: F
Punctuality: F
Professionalism: F
Description Of Work: Dietz Development was to perform: painting, refinish floors, electrical, plumbing and handyman work. I was instead left with damage to my home and work that had to be reaccomplished for thousands more than originally estimated.

Member comments: My home was damaged' the "work" had to be re-accomplished; and Dietz tried to sue me for "monies due for his "work." I won in summary judgement (meaning that his case had no merit). Despite his claims, Dietz was/is not licensed to perform work in the state of VA. Further, he invoiced me for work not even performed and also sued me for work not even performed. Today (six months later) he just showed up at my door and '"wanted to talk to me." I said that I "didn't want to talk to him," closed the door , and called the police. (The police said his reason was that he had a "lien on my house"; however this "lien" was made null and void the day I won the case according to the court.) This is after filing my first ever police report when I found my jewelry missing and Dietz was the only one with a key. Bottom line do not put yourself through this nightmare of a contractor.









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Shane Deubell

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Yes, i have one of those some wacko from the other board wrote and it stuck. Tried everything to get rid it, Of course all the positive ones disappeared.

Definitely has hurt.
 

Mikey P

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a member there left you a bad review?

YOU?

are you an asshole over there? lol...


that's a ban-able offense here.

What did Rob do about it?
 

floorguy

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have had no reviews....

to some extent that has hurt....but people ask why not....

1. only been online for less then a year

2. Google has made it a PITA...then I turn around and ask them to leave me one :hopeless:

have received a few emails back telling me what a pain it is, and they are sorry they didnt leave one....

i have one i just did....she is a friend so she will leave it.....she almost called me to reschedule, when she moved her furniture...said she wanted to clean it before i got there to clean :lol: She was embarrassed....wasnt to bad...you could tell where the dogs laid bad....also the traffic in the liv was pretty beat.....but it was great carpet and popped right back....

in fact it was only 2 rooms....she asked how much....$75....WHAT NO, you need more....ok I charge $100 min but i took off $25 for friends...

no no...$100 plus how much:shifty:......uhhh just $100...she gave $120

nice to have friends like that :headbang:


anyway Moral.....Google has made it a pain....and I am not on any of the others....
 

Mikey P

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What other review sites are popular out there Doug?


I have received well over 100k in new jobs off of Yelp this year


make it happen!
 

randy

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The contractor here in Fairfax has not won the case, however it was incredibly stupid for the reviewer to allege that a contractor's staff member stole jewelery.The fact that he doesn't posses a class A contractors licence as required under state law is however a criminal offense so he opened a can of worms. Posting unprovable accusations of theft is defamation against an individual. Posting that they did lousy work, over charged, that the gym smelled and staff were rude isn't liable. Google Beaverton Grace Bible Church verse Julie Ann to read what happened when a church sued ex-members for posting bad google reviews, and what the pastor thought was defamation. The church lost the anti-slap lawsuit (legislation that varies by state designed to punish lawsuits brought to impinge on the exercise of your 1st amendment right) Personally I think a certain equipment maker in our industry is going to get a very hard and expensive lesson in what is liable and what is not. We might just get to make some case law in this industry, imagine that.

Every case I have researched so far of a business sueing over poor reviews has ultimatly failed. Several won at the lower level but were lost on appeal. ALL Opinion is protected, there is no such thing as defamation of a business or product only of individuals. It has to be false statements, the plaintiff must prove the statements were knowingly false and prove actual itemized damages (not speculations of loss). Almost impossible to win these cases, ultimately the business owner spends a bunch of money making themselves look infantile and guilty. In the case of the church I mentioned, the case stopped with the filing of the anti-slap lawsuit filed by the defendants. The church that started the whole case was ordered to pay the defendants legal fees of over $60,000. Last I talked with the defendant, the church had paid $19,000 and were looking to borrow the rest to settle with the group of defendants. Pretty interesting case to watch.

Another example of this sort of thing was when a group of millionaire cattle men sued OPRAH for a show where a lot of disputed information about consuming beef was aired. Oprah said she was done with hamburgers and the price of beef dropped something like 68% the next day. The state were the litigation occurred even had laws prohibiting false statements about food industry products. That was ruled unconstitutional, a violation of Oprahs 1st amendment rights and the cattlemen had to fork over millions to Oprah's legal team and their own counsel. The price of beef took a long time to recover, that cost them millions also.

Bottom Line: happy customers don't post negative reviews and file lawsuits. Take care of your customers, make customer service a priority and avoid the court room. It cost more than most think, the results are never perfect and even when you win YOU LOOSE. A story that would disappear in a couple of days continues for months or even years as soon as you litigate.
 
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Shane Deubell

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a member there left you a bad review?

YOU?

are you an asshole over there? lol...


that's a ban-able offense here.

What did Rob do about it?

The guy is long gone, some scammer i chased away. Remember his screen name though in case he pops up again.

Something with the internet and newbies brings those kinds of people out in droves.
 

rhyde

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I wounder what kind of effect this will have on the contractors business, this isn't exactly good PR.

Most of our business is word of mouth and direct referral I can recall 1 customer from yelp in the last 5 years. Some of you may remember; Mr. O'conell's (spongo bongo) put a vague, baseless warning on the front page of his site about me as well as removing me from his "trusted resource list" not only did it not hurt my business I actually picked up a dealer in California as a result of it and this year has been our best... it's funny how things workout sometimes.
 

randy

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Thanks Mike, I closed on a couple of businesses (one out of bankruptcy and one that was smart enough to sell before running out of cash). So I have been very busy replacing some staff and rewriting the employee manual for a daycare center. Fortunately I retained the very experienced assistant manager and some staff but its definitely a turnaround situation. Also grabbed a new truck worth about $25,000 for $11,200 at a court ordered liquidation auction, missed getting the whole business by about $3,200. The truck was my consolation prize but I was still sick at my stomach as a friend of mine went to a different auction and bought an Arby's for $225,000 Including the real estate. He said, well load up your friends in the truck and drive up for free lunch.

Im seriously thinking of attempting to get the new connections trade show moved there .

"Hi we are here for free lunch, these are my 3500 friends".
Of course this year it would have been 518 friends, LOL.

So far December has been slow in carpet cleaning here, I'm kind of thankful for that.
Hope all is well with all here.

Randy
 

randy

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I wounder what kind of effect this will have on the contractors business, this isn't exactly good PR.

Most of our business is word of mouth and direct referral I can recall 1 customer from yelp in the last 5 years. Some of you may remember; Mr. O'conell's (spongo bongo) put a vague, baseless warning on the front page of his site about me as well as removing me from his "trusted resource list" not only did it not hurt my business I actually picked up a dealer in California as a result of it and this year has been our best... it's funny how things workout sometimes.

That's because public criticism from that guy is extraordinarily valuable marketing. You should ask him to create a worst of the industry list and pay him $1,000 a month to be number 1 on the list. He is from this area and if you want to know the real deal with him call me.

This industry seems to crank out a flake a week in the guru wannabe category.
 

floorguy

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What other review sites are popular out there Doug?


I have received well over 100k in new jobs off of Yelp this year


make it happen!

I dont doubt it.....

The problem is I get lost on all the sign up shit....which do you pay for, which not...etc.....

So ideas...?
 

Mikey P

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well, lets start with what the house wives are using in your city to find services...


If you don't know start asking every woman and effeminate man you know.
 

Shane Deubell

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Interesting about yelp, definitely on my list with Angie's for next year.

Anyone try any others?
 

alazo1

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Yelp has been talked about alot lately. Mainly business owners that had great reviews, yelp solicited them for business and shortly after they declined their reviews got filtered. On some ocassions the business owners were flat out told that if they sign up that their negative reviews would go away. I was never told this when I've been solicited but if this talk keeps happening yelp will start loosing credibility.

Albert
 

Jeff Madsen

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Im glad to see that we can fire back in court.

I just don't see how "firing back" in court benefits us in the long-term. My business is relatively small and referral-based - I think it would kill us if word got out on the street that we had dragged one of our clients into court over a bad review. I'd rather give an extra quart of blood to an intransigent client and make the problem go away quietly at my expense than incur an even larger expense in litigation and lost reputation.
 

Steve Toburen

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Bottom Line: happy customers don't post negative reviews and file lawsuits. Take care of your customers, make customer service a priority and avoid the court room. It cost more than most think, the results are never perfect and even when you win YOU LOOSE. A story that would disappear in a couple of days continues for months or even years as soon as you litigate.
You big talking suit-happy boys oughta tattoo the above on your wrist.

Steve Toburen
www.SFS.JonDon.com

PS The key to avoiding bad reviews is to resolve the issue BEFORE the client bares your dirty laundry on the Internet. (Well, DUH!) So here is the problem- trigger happy, impulsive home owners running to the keyboard BEFORE they even give you a chance to solve the problem.

I sent out a QuickTIP a few weeks ago suggesting that instead of calling the customer the next day (which is an eternity online) you should call the office immediately after leaving the job and then the office (or any "neutral third party"- just not you!) should IMMEDIATELY call the customer:

"Hi, Mrs. Jones. This is Paula with Connoisseur and I just wanted to make sure you were delighted with Mike's work... He did WHAT to you?" :)

Anyway, this trick will head off 90% of these impulsive bad reviews BEFORE the client gets to the keyboard. Here is what we sent out in the QuickTIP email.
 

Royal Man

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Just a note: If you do have a client problem the words, "I understand" can work wonders.

Usually if I have a problem it is from a 3rd party and not the client themselves. Like a husband wondering why the bill was higher.
I had one a few weeks ago. That was very upset. Threatening all kinds of extream things.I lowered his anger on the phone, emphasized with him (I understand) and settled him down.

The next week he called to apologise and thank me for de-escalating things and my professionalism. He said I was right and that they will recommend me and use me in the future.

If I would of aproached the situation with a chip on my shoulder and matched his anger, instead of emphasizing with him (I understand). The situation would not of had the same result.
 
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Steve Toburen

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Just a note: If you do have a client problem the words, "I understand" can work wonders.

Usually if I have a problem it is from a 3rd party and not the client themselves. Like a husband wondering why the bill was higher.
I had one a few weeks ago. That way very upset. Threatening all kinds of extream things.I lowered his anger on the phone, emphasized with him (I understand) and settled him down.

The next week he called to apologise and thank me for de-escalating things and my professionalism. He said I was right and that they will recommend me and use me in the future.

If I would of aproached the situation with a chip on my shoulder and matched his anger, instead of emphasizing with him (I understand). The situation would not of had the same result.
Good points, Dave. (Just a quick editorial note- you want to say "empathizing"- NOT "emphasizing"!)

The "I understand" reply works really well with price hagglers too.

Steve Toburen
www.SFS.JonDon.com

PS My 3 step "Emotional Judo" complaint resolution goes like this with a screaming customer:

1) Show gratitude- "THANK YOU for letting me know about this."

2) Apologize- "I am so very sorry for this situation."

3) Take "ownership" of the problem- "I'm going to do everything possible to resolve this."


​Really works well over the phone or in person.
 

Connor

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PS My 3 step "Emotional Judo" complaint resolution goes like this with a screaming customer:

1) Show gratitude- "THANK YOU for letting me know about this."

2) Apologize- "I am so very sorry for this situation."

3) Take "ownership" of the problem- "I'm going to do everything possible to resolve this."


​Really works well over the phone or in person.

LOL

I've talked to folks who "apologize" the way you suggest, 99.99% of the time you can tell that they are just spouting off canned words and aren't sincere in the least.
 

Royal Man

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LOL

I've talked to folks who "apologize" the way you suggest, 99.99% of the time you can tell that they are just spouting off canned words and aren't sincere in the least.

I think that is part of the post. You have to be real. Be sincere and show real empathy for the client or it won't work.

Kind of like with sales. If you put the clients needs ahead of your own and sincerly care for the client.
You end up making more money at the end.

You can have everything in life you want, if you will just help other people get what they want”. Zig Ziglar
 

hogjowl

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Connor:

Thank you for your unique viewpoint. I apologize for thinking you are an idiot. It is my responsibility not to treat others by how they come across, but by how they actually are.

Either way, you're screwed ...
 

Connor

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Connor:

Thank you for your unique viewpoint. I apologize for thinking you are an idiot. It is my responsibility not to treat others by how they come across, but by how they actually are.

Either way, you're screwed ...


Although I appreciate your formal use of the colon in your address, please return the above correspondence to the address of your colon.



I'm out of your league, Chitlin.
 

Barry-QDCC

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Just a note: If you do have a client problem the words, "I understand" can work wonders.

Usually if I have a problem it is from a 3rd party and not the client themselves. Like a husband wondering why the bill was higher.
I had one a few weeks ago. That was very upset. Threatening all kinds of extream things.I lowered his anger on the phone, emphasized with him (I understand) and settled him down.

The next week he called to apologise and thank me for de-escalating things and my professionalism. He said I was right and that they will recommend me and use me in the future.

If I would of aproached the situation with a chip on my shoulder and matched his anger, instead of emphasizing with him (I understand). The situation would not of had the same result.

Let me guess what you told him that calmed him down and made him happy......"Sir, next time I'll charge you more." :stir:
 

idreadnought

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Unless you are actually doing very poor work or your a jerk most reviews will be good.

If you do get a negative one respond with thanking the customer for the feedback and apologizing. Not every review will be positive and negative reviews can be turned into positives by how you respond.

Now I will give you my best strategy to get reviews. Register a domain name such as Ratemcc.com and give that to people to review you. Point the domain directly to the site you want reviews on such as google. It is much easier than trying to walk them through the process of finding the site you want reviews and then finding your page.

Finally if you are an owner operator then ask for reviews when you find a cheerleader customer. If you have employees then pay them a tip when they get a good review.
 
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