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The short version:
Tripadvisor has a review system which allows anyone to post anything about any hotel, regardless of whether they have even stayed there. This allows all sorts of people to abuse the system.
An example: a hotel was blackmailed and told that if they didn't give a former guest some money, the guest would write a false malicious review to harm the business. Tripadvisor would not take down the false review nor would they allow the hotel management to respond properly to the review. The result is that anyone reading the review will get a false idea of the hotel and the hotel will lose bookings as a result.
Also, their copyrighted slogan "get the truth" is a complete lie. How is it possible to get the truth from a review system which is full of holes?
Another article on the subject of TripAdvisor, Stephen Kaufer, fraud and defamation:
http://www.splagg.com/story/2009/06/16/tripadvisor_forum_inviting_defamation_slander_and_fraud
I couldn't agree with you more. The BBB has listed them as not an accredited business and given them a grade of C+. The BBB complaint list gives a false impression since they won't take a complaint unless it involves a financial transaction which invalidates all of these type of complaints. However, the Massachusetts Attorney General will take complaints and has said she will take action against them if she gets enough complaints. Also contact Clark Howard at ClarkHoward.com and post your comments as he is always plugging them.
Never a truer word said. The whole site is filled with fake reviews either created by the accommodation providers or by a rival accommodator. To post a fake review, all you need is a hotmail account and away you go. Just looking at most of the reviews on the site, you'll see that a lot of reviewers join, post and never return. If you write to Trip Advisor and ask them to comment about obvious fake reviews, they won't return your emails.