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The case appears to mark the first time that a Yelp user was sued for defamation for posting a bad review. Some observers had warned that the lawsuit could scare consumers from posting negative reviews on sites like the fast-growing Yelp, which recently expanded into the U.K.
Norberg posted a brief statement on his Web site, standforspeech.com, which he launched to inform people about the lawsuit. "A misunderstanding between both parties led us to act out of hand," he wrote late Friday, after the case was resolved through mediation.
The site previously hosted a copy of lawsuit, brought in California state court by Steven Biegel, along with the original post. That material appeared to have been removed by the weekend.
Norberg's original review, written in November of 2007, complained of a billing matter. He said that he expected a bill for $125, but was instead sent a $500 bill. "He couldn't give me a straight answer as to why the jump in price," Norberg wrote. He also reported that he later found "a much better, honest chiropractor."
Biegel alleged in his lawsuit that the post defamed him by suggesting that he was dishonest.
In the statement posted late Friday, Norberg said he "should have remained open" to Biegel's concerns. "Both Dr. Biegel and I strongly believe in a person's right to express their opinions in a public forum," he wrote. "We both encourage the internet community to act responsibly." It wasn't clear whether Norberg also paid any monetary damages to Biegel.
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If a business requests feedback after a purchase and the customer reports a shipping issue, the company can take steps to resolve the problem, which creates a satisfied customer and dispels the need for negative feedback elsewhere. Right now, in an economy where reputation is essential, small businesses have the opportunity to harness the power of reviews and resolve any issues before consumers take their feedback elsewhere – and before a war of words turns into a court battle.
Should be an interesting story to follow.
That's one for the good guys!