Liitlerock, AK: Yahoo is facing a potential consumer fraud class action lawsuit over allegations Localworks, its new lead-generation platform, doesn't deliver on its promises.
Filed in federal court North Little Rock, AK, the lawsuit claims that in November plaintiffs Wilson & Haubert paid $90 for a three month enrollment in Localworks. Plaintiffs claim they were prompted to do so after Localworks revealed over 120 errors in listings by various online directories. "Relying on the representations made by defendant -- namely, that purchasing the services offered by Localworks would 'fix everything' -- plaintiff enrolled in Localworks,"the plaintiffs allege.
Plaintiffs claim that subsequent scans by Localworks showed that the directory errors remained unchanged. "Despite defendants' representations that the errors it identified had been corrected, and that plaintiff's business information was now included on the 40+ sites, enrollment in Localworks did not provide such benefits,"the lawsuit states.
The law firm states that as of late December, 2013, when it filed suit in the Northern District of California, the scan showed in excess of 87 errors in the company's listings on various directories. The lawsuit claims breach of contract and false advertising, among other charges.
Localworks, launched by Yahoo in 2012, is designed to increase visibility of small businesses by assisting them in getting listed on some 40 online directories. Yahoo touts the tool as being to assist companies generate leads and increase their visibility in search results, directories and map applications.
But Wilson & Haubert allege that the tool didn't work as advertised. "Defendant has consistently misrepresented the benefits of the Localworks program,"the lawsuit states. Plaintiffs are represented by themselves.
