Local businesses have sued Yelp Inc. for its unfavorable way of selling advertisements.

The popular web service, which rates local businesses, has faced three cases wherein it has been accused of extorting money from businesses through advertisements, so that it rates them well.

However, the Chief Executive of Yelp, Jeremy Stoppelman has denied all the charges. He said that there is a misunderstanding about the rating system. This has led to the development of conflicts.

He even accused the lawyers and said that they are using this as an opportunity to earn money.

Talking about the rating system, Jeremy said that the company, in its five years of existence, has always used a filtering system to stop businesses from distorting their ratings.

He said that since the people are not fully aware of how this works, they always feel that some or the other kind of cheating goes on.

Meanwhile, this is not the first time that such an allegation has come up against Yelp. Last year, a newspaper came out with an article which said that Yelp had tried to hide negative ratings so that it can get more ads from the concerned companies.