Trustpilot Faces Accusations of Extortion as Shares Plunge

Shares in Trustpilot tumbled to a two-year low amid allegations of aggressive business practices from a US research firm, intensifying scrutiny on the British-Danish customer review platform. On Thursday, Trustpilot’s shares fell by 32 percent, marking their steepest single-day drop since floating on the London Stock Exchange in 2021 and wiping more than £200 million from its market valuation. Losses for the year have now mounted to nearly 60 percent.

Grizzly Research released a report accusing Trustpilot of deploying high-pressure tactics, likening its approach to “mafia-style extortion campaigns.” According to the firm, Trustpilot allegedly creates accounts for companies without their consent and restricts access to negative reviews unless they pay for a subscription, a tactic that Grizzly Research claims inflates ratings for paying clients. The report alleges that this model compels businesses to buy services in order to manage their reputations, undermining the integrity of the platform’s review system.

Trustpilot responded by rejecting the accusations, describing the report as “selective and misleading” and asserting that it omits key context and misrepresents their business model. Trustpilot maintained that its guiding principle is trust and that it enables businesses and customers to interact transparently.

The Grizzly Research report was compiled from interviews with current and former Trustpilot users, ex-employees, and industry experts. It alleges that paid profiles typically see their review scores rise significantly, a process critics argue erodes wider trust in online customer feedback. Grizzly Research disclosed a short position in Trustpilot shares, a strategy that profits from declines in share price, adding a layer of controversy regarding the timing and intent behind the allegations.

Founded in 2007, Trustpilot has become a prominent online review portal, with more than 1.4 million businesses—including many FTSE-listed companies—soliciting feedback from consumers. The company has promoted itself as a digital standard for customer service, with over 200,000 new reviews posted daily and many firms publicising their Trustpilot ratings to reassure customers.

Trustpilot counts some of the world’s leading investment groups among its largest shareholders, including Sunley House Capital Master, Capital Group, Vanguard, and BlackRock. Market observers are now watching the fallout closely as Trustpilot confronts allegations that strike at the heart of its business model and public trust in consumer review sites.