Business

‘Yelp Extortion’: Man Threatens Restaurant With Negative Review Unless He’s Given $100 Gift Card

A man who told the owners of the Red Rabbit Kitchen and Bar in Sacramento, Calif., that he’d write a “scathing” review on Yelp unless they gave him a $100 gift card had his extortion scheme blown to bits when the store owners called his bluff.

This sort of thing is a lot more common than you’d think.* And it makes sense. Considering the fact that more and more people are are basing their purchasing and dining selections on online reviews, a particularly bad review could be the death knell for any establishment.

So is there any way for a business to defend itself from bogus online reviews? Not really.

Maybe that’s why some people are starting to realize that they can threaten business owners with bad reviews in hopes of scoring a payout.

Watch the CBS Sacramento news brief:

Earlier this month, the Red Rabbit Kitchen and Bar received a complaint from a customer who said the restaurant gave him food poisoning. The customer demanded a refund.

“We don’t do refunds but we’d be happy to refund your money in the form of a gift card from any restaurant in town,” Bar co-owner Sonny Mayugba said he told the customer.

However, the bar’s co-owner says the customer took it a step further.

“I’ll be doing a scathing review on you on Yelp,” he said the customer told him, “and I’ll report you to the health department. But if you give me a $100 gift card, then I won’t do it.”

“That’s flat-out extortion,” Sonny responded.

Again, is there any way for business owners to avoid this type of thing?

“Yelp says it allows users and business owners to flag reviews that violate their terms of service. And business owners are able to respond to any reviews that are posted about their company on the Yelp website, ” CBS Sacramento’s Ben Sosenko writes.

But while business owners are ultimately unable to do anything about what is said online, Sonny said owners still have to push back when they know they’re being taken for a ride.

He refused to give the alleged food poisoning victim anything.

“I hope this inspires other retail establishments and restaurants to push back on extortion,” he said.

(H/T: The Consumerist)

*When we waited tables, we saw this sort of thing happen all the time. Considering that sites like “Yelp” have only increased in popularity since we left the industry, we can’t imagine things have gotten any better.

Comments (31)

  • Yelp is a Four Letter Word
    Posted on July 11, 2012 at 8:44pm

    It’s sad that we live in a society where people have stopped using common sense for the most part. Has everyone forgot there are two sides to every story, and usually somewhere in the middle is the truth?

    I hate Yelp and Yelp Reviewers, especially the “Yelp Elite”. What a pile of you know what. Opinions are like ummm, you know, everyone has one. Unfortunately, most peoples opinions are jaded and over exagerated. For example, one little thing at a restaurant goes wrong (service a tad slow because they’re busy, maybe the steak came out medium rare instead of medium, etc) and the next thing you know, a stuck up Yelper with nothing better to do writes the place should be condemned.

    Then, take into considerations that Yelp has many allegations themselves about unfair business practices, and that just makes the matter worse.

    I wish people would read betwen the lines and use common sense when reading reviews from the public. Sure, if there are 100 reviews about a place, and 99 are bad….OK, the place probably sucks. If there are 100 reviews and 99 are all good, then the reviews mostly are probably fake or paid to be there. I would take a place with 70 good reviews and 30 bad reviews over the latter anyday.

    For more info about yelp and yelp problems, visit http://www.facebook.com/yelpisafraud

    Report Post »  
  • jcvillar
    Posted on May 30, 2012 at 10:49pm

    Stick with the ZAGAT guide.

    Report Post »  
  • MrObvious
    Posted on May 30, 2012 at 8:58pm

    Funny, I don’t generally read online reviews of establishments if frequent, nor do I know anyone that does. New ones maybe; but, the key to a restaurants’ success is primarily repeat business.

    Report Post »  
  • Master.Debater
    Posted on May 30, 2012 at 11:54am

    This guy was following the example of Obama’s shakedown of BP, although in that case it was an $8 billion gift card.

    Report Post » Master.Debater  
    • ICEDRAGONNITE
      Posted on May 30, 2012 at 3:14pm

      People have been doing what is expedient for years and this has made extortion a very viable game. Ins. Companies are the worst for doing what is expedient this eventually drive up costs.
      Do what is right not Expedient.

      Report Post » ICEDRAGONNITE  
  • spysea
    Posted on May 30, 2012 at 11:53am

    YELP.. to Yelp…”yelp/yelp/
    Noun:
    A short sharp cry, esp. of pain or alarm.

    Why would I want to hear that? ……. Yelp is for Lemmings

    Report Post » spysea  
  • Tickdog
    Posted on May 30, 2012 at 11:43am

    kick him in the nutts and see how he feels about it.

    Report Post » Tickdog  
  • goodpeeple
    Posted on May 30, 2012 at 10:35am

    This is a story heard far too often.

    We’ve created a new system that uses Facebook to remove the ability for losers like this to extort from businesses. It’s called http://goodpeeple.com and it leverages your network of friends to help you find businesses that you can trust.

    -James

    Report Post » goodpeeple  
    • johnjamison
      Posted on May 30, 2012 at 11:06am

      So why didn’t the owner take it to the next level and call the police extortion is a felony.

      Report Post »  
    • oneshiner
      Posted on May 30, 2012 at 11:17am

      Sick people, looking to skrew everyone for their personal gain. We need to see through all this stuff and stop it.

      Report Post »  
  • kat747
    Posted on May 30, 2012 at 10:12am

    Next time that happens to your restaurant, DEMAND a copy of the hospital or physician’s bill and
    it must have a diagnosis of “food poisoning” with proof of the exact food that caused the poisoning from a laboratory.
    If the accuser does not produce the proof, sue the accuser in court for extortion and blackmail.
    End of discussion.

    Report Post »  
  • SocialistSlayer
    Posted on May 30, 2012 at 9:47am

    As a small business owner I know only too well how unreasonable customers can hurt you through various outlets now days. Some customers are like Nazis trying to force you to give in to their demands and we have even experienced irate employees that take to Social Media to try and bring down your business. As a business owner I have taken a stand and stood fast in my policies. I can‘t respond to all the various forms of bashing because I don’t have time to scan all them. People need to realize we have to take a stand to stay in business.

    Report Post » SocialistSlayer  
  • Ron Staiger
    Posted on May 30, 2012 at 7:12am

    Everyone knows that positive reviews may be from the restaurant staff and owners while negative reviews may very well be from competition. Check your local health department listings of establishments that have violations and what exactly those violations are. Also. if you go into a restaurant and you smell even a very faint odor not unlike lockerroom sweat, turn around and walk out- there’s rat infestation.

    Report Post »  
  • Ron Staiger
    Posted on May 30, 2012 at 6:53am

    That‘s why it’s always a good idea to have a “Tony” you can count on when customers become extortionists or litigation is threatened. Amazing how quickly people change their minds when broken legs are imminent.

    Report Post »  
  • JACKTHETOAD
    Posted on May 30, 2012 at 6:17am

    Yelp? How about the Better Business Bureau? The BBB does basically the same thing for their ‘ratings’, and charges 300 bucks!

    Report Post » JACKTHETOAD  
  • MerryColin
    Posted on May 29, 2012 at 11:53pm

    Unbelievable. I don’t look to Yelp or any place online for reviews. I eat and do business locally and, if I get a lousy meal or service, I simply don’t return. How easy is that?

    Only time I got hot was when a tire store chinked my wheel mounting a tire. In “fixing” it, by putting on the spare rim, they chinked it again! When I called their HQ, they ordered me new wheels overnight at no cost. Guess what? Yep, they did it AGAIN to both new wheels. Come to find out the machine they used to remove the tire caused the problem with what appear to be fragile paint on my wheels. So whadda am i gonna do? I let it go and bought two new wheels at the dealer. End of story. It wasn’t worth the time or aggravation; the new wheels were cheaper than both!

    Report Post »  
  • HorseCrazy
    Posted on May 29, 2012 at 11:33pm

    you should see my property managment business ratings online…I have a ton of unhappy evicted no good drug addicts and drunks who have nothing better to do but type bad reviews online from the library with their free internet access after I boot their butts out on the street. good for me that owners looking for me to manage their buildings love to see that I am cheap with the repairs and fast to evict for no payment. feel sorry for small businesses in the service industry who have to deal with these idiots.

    Report Post »  
  • TXPilot
    Posted on May 29, 2012 at 11:09pm

    Isn’t this story based on a Family Guy episode, where Peter obtains a “free gas for a year” card, by threatening to sue a convenience store for sexual harassment?….yes, I had too much free time on my hands that night…:D

    Report Post » TXPilot  
  • ChiefGeorge
    Posted on May 29, 2012 at 9:51pm

    Sierra Hotel for standing your ground!

    The sad state of affairs in this nation never ceases to amaze and perplex me. We have sunk looooww from the heights when you wouldn’t dare even complain in public let alone to the store manager or owner. You would just vote with your pocket book and never return to the establishment. Like the time the owner of a tire shop charged me for a new valve stem on a tire/rim I brought in as a flat tire. We found out later it was the valve stem that failed which caused the catastophic failure while driving. He said this valve stem had been replaced but it was the same old one in the rim. I put the tire on the car and the next day it was flat again. I found the tire stem was dirty and no way could it have been new as charged from the tire change plus it had a nick in it and this was leaking air. I took it back to him, made a fuss about it in front of his customers and he literally came out from behind the counter to threaten me. I didn’t back down because he was in the wrong, his workers lied about changing the valve stem but charged me for a new one. However he did offer a free oil change for my trouble. Too late, trust is broken. It’s the little things like this that cause you never to frequent the business again. His loss, because I had several cars at the time and was looking for a trustworthy place to do business with over and over again.

    Report Post » ChiefGeorge  
    • sacwoodpusher
      Posted on May 30, 2012 at 2:25am

      I took a lawn mower tire to Elk Grove Radial Tire. I ran over a star thistle. They fixed it for free.

      I repaid the favor when my pickup truck needed new Michelins! Paid him back big time.

      Yelp, however, is good! I use it when the Chinese Restaurant inflates the restaurant bill by 2-3 dollars per person….for rice! Or the restaurant who charged me for water, because I don’t drink!

      Report Post »  
  • stix_n_stones
    Posted on May 29, 2012 at 9:38pm

    When will the customers be able to be reviewed like on eBay most people leaving reviews are morons. Opinions are like a!# holes everyone has one and they all stink.

    Report Post » stix_n_stones  
  • red_white_blue2
    Posted on May 29, 2012 at 9:14pm

    Just another mindless, greedy liberal. Tell him to shove it up his ass. Let him call the health department. I would say, “I’ve been expecting you”-to the inspector that might arrive, and then tell him or her the real truth. I wouldn’t worry about one idiot taking down my restaurant on Yelp.

    Report Post » red_white_blue2  
    • eric6161
      Posted on May 29, 2012 at 9:40pm

      I seldom ever leave a negative comment online about restaurants but I do enjoy leaving the positive ones. If everyone left good reviews when they truly enjoyed a restaurant it would drown out the extortionist reviews.

      Report Post »  
    • Bluzie
      Posted on May 30, 2012 at 6:27am

      Chances are even if this guy called the health dept. and they came in for an inspection, more than likely no matter how clean the guy keeps his restaurant they could find a violation.

      I agree that the guy was a scammer, but on another note lets look at the biz owner. The customer says he was poisoned by the food from this place and was looking for a cash refund. The owner says we give gift cards and not cash refund. Now had it been true that a restaurant’s food made me sick, there is no way on God’s green earth I would go back, and the owner knew this too. So giving a gift card is the same as telling the guy to pound sand. And if he was giving a gift card in the equal amount of what the guy spent on his meal then he’s screwing him again since food costs are a lot less than what the diner was charged.

      Report Post »  
  • Magyar
    Posted on May 29, 2012 at 9:02pm

    Bravo for standing your ground! If small business folks bow to this kind of intimidation–then the sky is the limit and there isn‘t anything they won’t demand—

    Once small business is destroyed, OWEbama will be one step closer to destroying the American Dream–He’s already working very hard from the top down….

    Report Post »  
  • Rayblue
    Posted on May 29, 2012 at 8:59pm

    Just charge $100 for the appetizer.
    And a million bucks for the entree’.

    Report Post » Rayblue  
  • marybethelizabeth
    Posted on May 29, 2012 at 8:58pm

    This story is a year old.

    What happened theblaze. Did you guys get stuck in the wayback machine?

    Report Post » marybethelizabeth  
    • Rayblue
      Posted on May 29, 2012 at 9:13pm

      What happened Maryratbreath. Did you get stuck in the behind ?

      Report Post » Rayblue  
    • randy
      Posted on May 29, 2012 at 9:21pm

      Yeah, and Obama has been president for almost 4 years, and yet he still blames Bush for all his problems?

      Good one RAYBLUE!

      Report Post » randy  
  • CatB
    Posted on May 29, 2012 at 8:50pm

    Well done .. don’t give into extortion and put the word out so people know .. again well Done!

    Report Post »  
    • edmundburk
      Posted on May 29, 2012 at 9:16pm

      This reminds me of a common ghetto trash trick of going to fast food places and calling the 1-800 #’s
      and filing bogus claims to get free food. These coporations take the complaints at face value and they don’t bother to follow up the store in question and the ghetto trash always gets a free meal and the store gets a black mark from corporate.

      Report Post » edmundburk  

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