A federal judge upheld one woman’s standing to sue Angie’s
List, a consumer-review site, for unfair business practices and breach
of contract. According to the judge, the woman brought a fair argument
for a potential class action lawsuit.
Janell Moore claims that Angie’s list failed to disclose information
about its advertising policies, specifically policies that allow customers
to influence the sites ratings by paying more.
According to Moore’s suit, Angie’s List entices local consumers
to pay for allegedly unfiltered business reviews. In reality, Moore alleged,
Angie’s List profits from influencing this information.
Moore began paying for Angie’s List services three years ago. Since
then, Angie’s List allegedly misled her with skewed rankings and
violated Federal Trade Commission specifications and Pennsylvania consumer laws.
In the suit, Moore points out that Angie’s List claims to be a “passive
conduit” for consumer reviews; its membership agreement even says
rankings are based on actual consumer experiences. In reality, service
providers can influence rankings by paying fees.
To read more about the suit,
Richard M. Golomb, Ruben Honik, David J. Stanoch, and Kenneth J. Grunfeld
of Golomb & Honik PC. represent Moore.