Ripoff Report

Ripoff Report

URL	http://www.ripoffreport.com/
Type of site	Consumer
Available language(s)	English
Created by	Ed Magedson
Current status	Online

Ripoff Report is a privately-owned and operated for-profit website with the stated purpose of giving consumers a voice in disputes with corporations and public figures. Aggrieved individuals are asked to submit their complaints, and those statements are posted online with the expectation that public exposure will apply pressure to the targeted businesses. The administrator of Ripoff Report, Ed Magedson, solicits these descriptions of alleged ripoffs and publishes those reports to attract the attention of the alleged offenders.

Background

The Ripoff Report has been described as "the National Enquirer antidote to the Better Business Bureau"^[1] with its aggressive headlines and eye-catching graphics, the website draws attention primarily by being engineered to appear among top rankings for web searches on the alleged offenders business and product names. Many users enjoy the opportunity to vent online and the site promotes the possibility that reports may generate media attention and/or legal action. The site claims to have helped consumers settle their disputes with the offending companies, and, given the high-profile nature of the Ripoff Report on several search engines, those claims carry some weight. However, some companies have sued or threatened to sue Magedson for defamation but Federal Law provides all websites an exemption from liability for the postings of others (see next paragraph). Defenders of the ripoffreport.com state that the site cannot differentiate between documented incidents of bad business practices and embellished or false claims posted.

One aspect of Ripoff Report that distinguishes it from similar sites is that in general, Reports are never taken down or removed. (See Criticism and lawsuits section below) The Ripoff Report and Magedson appear to be within their rights on this point since the Federal Communications Decency Act (CDA) creates an absolute legal "safe harbor" for websites and blogs where the content is posted by others. See CDA, Section 230 at 47 USC § 230. However, Ripoff Report employees do occasionally append "Editor's Suggestions" to Ripoff Reports written by others—the most common suggestions involve how to challenge a charge to the author's bank account or credit card. Though not required by the CDA, anyone who feels a Ripoff Report has not gotten the facts straight, or has otherwise mischaracterized a person's activities, can file a Rebuttal to the initial Report. Such Rebuttals are free but are published at Magedson's discretion.

Criticism and lawsuits

Ripoff Report's persistently refuses to allow companies to post replies unless they pay Ripoff Report a "consulting fee". As reported by Channel 7 news^[2], many companies view this as "electronic terrorism" meant to extort the money from legitimate companies. Ripoff Report supposedly allows to post anonymous complaints however at Magedson's discretion and doesn't allow to post any replies without making a payment to Ed Magedson. Rebuttals by the accused companies are only published after collecting a payment and only at Magedson's discretion.

Ripoff Report also allows individuals to post unconfirmed complaints and accusations against other individuals. Aggrieved individuals can submit their complaints against other individuals, and those statements are posted online with the expectation that public exposure will apply pressure to the targeted individual. Personal information is not redacted. The individual being accused usually has his or her full identity revealed while the poster remains anonymous. Ed Magedson said his staff only verifies the complainants' real names, which are kept confidential, and verifies that they have an actual email address. This practice has led to accusations of "willful negligence" by Magedson and Ripoff Report for "falling short of what a reasonable person would do to protect another individual from foreseeable risks of harm." It has been argued that these loose verification practices encourage false claims and slander.

Ripoff Report does not allow complaints about its own services.^{[citation needed]} However, there are a number of allegations^[who?] against Ed Magedson and the Ripoff Report which are easily found online.

This article contains weasel words, vague phrasing that often accompanies biased or unverifiable information. Such statements should be clarified or removed. (October 2009)

Several sites have been erected which attack Ripoff Report and Magedson. Also many allegations have been posted on Internet message boards, including allegations that Ripoff Report's search engine optimization tactics violate Google's terms of service.^[3]

^[3][4]

Corporate Advocacy and Remediation Program

At least one lawsuit alleges that Magedson manipulates information found on the Ripoff Report, and attempts to extort money from companies in exchange for removing (or editing) complaints posted. It also alleges that Magedson posts libelous statements about them if they do not comply. Magedson states that these claims are all false and are the result of reported people and businesses trying to show that he wrote some of the questioned content so that the Communications Decency Act's "safe harbor" provision does not apply. Most recently, in GW Equity v. Xcentric Ventures, LLC, a Texas district court dismissed all claims including one that the Advocacy Program was extortionate."^[5]

The Phoenix New Times explains that at least 30 companies now pay Magedson to comment on unfavorable reports on Ripoff Report. Ripoff Report offers the "Corporate Advocacy and Remediation Program."^[6] Businesses pay Magedson a fee, plus a monthly retainer. And in exchange, Magedson makes "EDitor's comments" next to complaints — pointing out that the company, as part of the program, has agreed to give a full refund to aggrieved consumers, that the number of complaints may not be out-of-line with the size of the company and pointing out any claims against the company he considers false. Magedson's litigation attorney, Maria Crimi Speth, states there is a sliding fee scale for interested businesses, depending on the number of complaints the businesses have on Ripoff Report and "many other factors," and that the price can be as low as a few hundred dollars per month. Court files documents and several business owners who spoke to the Phoenix New Times, state that joining the "Corporate Advocacy and Remediation Program" was offered for some businesses for more than $50,000, on top of a monthly retainer fee. Other businesses have documented solicitations of up to $250,000 to join the program. Critics argue how can Magedson accept payment from the same companies that he claims to be fighting, especially when he was once so critical of the Better Business Bureau for doing the same thing. Magedson claims the big difference is that he gets all the complaining consumers their money back—which is a pre-condition to entering the Program.^[7]

Lawsuits

Many companies have sued Rip-off Report or Magedson.^{[8][9][10][11]} At any given moment there are always lawsuits pending against Ripoff Report. None of these cases have ever gone to trial. Some have been settled, and in other cases Ripoff Report has failed to appear to defend itself. In such cases, a default judgment is entered against Ripoff Report. Some suits can be reviewed at Citizen Media Law Project.^[12]

Several people and businesses listed on Ripoff Report have allegedly hired the Defamation Action League, an organization run by William L. "Bill" Stanley (possibly a pseudonym), who is listed as one of the world's top 200 spammers,^[13] to attempt to make Magedson and his business partners remove specific reports. In return, Magedson filed a lawsuit under RICO. On June 21, 2007 a preliminary injunction was granted against DefamationAction.com and ComplaintRemover.com. Stanley and his associates were found liable for defamation and making death threats. Robert Russo, who claims not to be part of the Stanley group—but who does own ComplaintRemover.com, has filed an answer, defenses and a counter-suit in the case, which is in progress.^[14][15]

References

External links

• Rip-off Report
• Sullivan, Bob (January 6 2006). "Scam-fighting Web Sites". MSNBC.com. http://redtape.msnbc.com/2006/01/web_sites_i_wou.html. 
• Richardson, Vanessa (February 24 2006). "Rebates everywhere, but where's the money? Getting your cash back can be frustrating, but it can be done". MSNBC.msn.com. http://www.msnbc.msn.com/id/11497159/.