Short-seller Grizzly Research has accused review platform Trustpilot of operating a "mafia-style extortion racket" to boost its business. In a report, Grizzly claimed that Trustpilot creates unsolicited review profiles for businesses, which then attract highly negative reviews. This, the report alleges, prompts businesses to pay for subscription deals to "more actively manage" their reviews.
Grizzly Research further stated that paid-for profiles see their review scores magically increase, with industry experts allegedly referring to the scheme as the "Trustpilot Mafia." The short-seller suggested that Trustpilot has prioritized revenue over the integrity of reviews, leading to a potential depreciation of its brand value. It also claimed that genuine negative reviews are often challenged or removed for companies that pay Trustpilot, while fake positive reviews are allowed.
Trustpilot has vehemently denied these allegations, stating that the report is "selective, misleading and framed to support a predetermined narrative." The company asserted that the claims omit key context and publicly available facts, creating a false impression and demonstrating a lack of understanding of how Trustpilot operates. Following the accusations, Trustpilot's shares experienced a significant drop, with reports indicating a fall of up to 28%.