Why Trustpilot Lost £243M in One Day: The 'Mafia-Style' Extortion Allegations Explained

Trustpilot Group Plc experienced its worst single-day trading session in history on 4 December, after a short-seller accused the global review platform of operating what it described as a 'mafia-style extortion' scheme.

Shares in the London-listed company tumbled more than 30%, wiping approximately £243 million ($324 million) from its market value and sending the stock to a near two-year low of 131.2 pence, according to Bloomberg.

The dramatic decline followed a scathing report from activist short-seller Grizzly Research, which disclosed that it had taken a short position in Trustpilot while levelling serious allegations against the company's business practices.

What Grizzly Research Claims

The report alleges that Trustpilot systematically creates unsolicited profiles for businesses, allowing negative reviews to accumulate before pressuring those companies into purchasing premium subscriptions to 'more actively manage' their ratings.

According to Grizzly's analysis, businesses that refuse to pay often end up with ratings below 2 out of 5 stars, while paying subscribers see their ratings 'magically lift' to above 4 stars. The report claims industry insiders have dubbed this practice the 'Trustpilot Mafia'.

Further, Grizzly alleges that genuine negative reviews for paying companies are 'spuriously challenged or removed,' while obviously fake positive reviews are left untouched. The short-seller presented a statistical analysis which it claims demonstrates 'a concerning pattern of apparently falsified reviews' across both paying and non-paying profiles.

Why This Matters for Consumers and Small Businesses

For millions of consumers relying on Trustpilot reviews before making purchases, these allegations raise uncomfortable questions about whether the scores they see truly reflect authentic customer experiences—or simply reveal which businesses have paid for subscriptions.

Small business owners may find the claims especially troubling. Grizzly's report includes interviews with owners who discovered unexpectedly negative ratings on Trustpilot and felt pressured into subscribing to address the issue. Some described the sales tactics as reminiscent of 'a bad 1990s mob movie.'

The platform's prominence in Google search results amplifies these concerns. According to Grizzly, when consumers search for reviews of online services or shops, Trustpilot scores often appear as the first result, making low ratings potentially disastrous for businesses that refuse to subscribe.

Trustpilot's Defence

The Copenhagen-based company firmly rejected the allegations, dismissing the report as 'selective, misleading and framed to support a predetermined narrative.'

In a statement reported by Reuters, Trustpilot said the report 'omits key context and publicly available facts, creating a false impression and exhibits a lack of understanding of how Trustpilot works.'

The company highlighted its moderation policies and verification processes as evidence of its commitment to authentic reviews. Executives also pointed to the company's recent announcement of a £30 million ($40 million) share buyback programme, initiated in September after strong half-year results, as a sign of confidence in its fundamentals.

Market Reaction and What Comes Next

Trading volume surged to more than 11 million shares on 4 December, compared with a three-month average of 2.5 million, as institutional investors rushed to reassess their exposure, ABC Money reported.

The timing was particularly unfortunate for Trustpilot, which had purchased 400,000 shares just one day earlier at an average price of 189.58 pence as part of its buyback scheme. By 5 December, shares were trading around 152 pence, showing tentative signs of stabilisation.

Founded in Denmark in 2007, Trustpilot operates on a freemium model, offering basic features for free but charging for premium analytics and reputation management tools. Under CEO Adrian Blair, who took over in September 2023, revenue grew 18.4% that year and 19.5% in 2024, according to Grizzly's report.

Analysts remain divided on the company's outlook. Some see the selloff as a potential buying opportunity for a cash-generative software business, while others warn that the reputational damage could have lasting effects if regulators take an interest.

Grizzly's report notes that Google agreed with UK authorities in January 2025 to tighten penalties against fake reviews, raising questions about whether increased scrutiny could threaten Trustpilot's prominent placement in search results.

For now, millions of consumers who rely on online reviews to guide their purchasing decisions will be closely watching whether Trustpilot can restore confidence in the integrity of its ratings.