When a Better Business Bureau goes bad
The Los Angeles chapter, accused of accepting money for good ratings, gets kicked out of the organization, which is already struggling for relevance.
Updated 6:40 p.m. ET
The Better Business Bureau was where your grandmother turned when she had a concern about a business' reputation. But the century-old group is no longer the only watchdog in town, and a recent scandal is threatening to ding its own reputation.
After a series of troubling allegations, the BBB has kicked out its Los Angeles chapter. Among the claims are that the local group demanded payments from local businesses in exchange for good ratings and that it even accepted fake businesses as long as they paid up, reports The Los Angeles Times.
That's reflected in a steep drop in the number of complaints consumers lodge with the BBB. In the pre-Internet days of 1987, the group received 2.1 million complaints, but by 2012, that number had tumbled to about 950,000, the Times notes.
The BBB disputed the numbers published by The Times, pointing out that the 2.2 million complaints in 1987 also included informal advice. Excluding advice, the number of complaints actually jumped, from 442,350 instances in 1987 to 984,721 last year, the BBB told MSN moneyNOW.
The watchdog also said it does "not view other review sites as competitors" because the BBB "is a non-profit, and our services and information are free to all consumers."
The BBB opened up about the problems with its Los Angeles chapter, called the BBB of the Southland, on its website.
The national group said that it had been working to resolve issues with the chapter for more than two years, ever since a "20/20" investigation found that the chapter was accrediting companies without checking their credentials. A blogger working with the ABC news magazine "filled out an application for the terrorist organization Hamas, which briefly appeared on the local website as a BBB Accredited Business with an A+ rating," the watchdog said.
Carrie Hurt, the parent group's chief executive, said the story was "painful" but that the organization realized it needed to change the troubled chapter or expel it, according to the press release.
Among those hit by the Los Angeles chapter's behavior was celebrity chef Wolfgang Puck, according to the Times. While he owns several Los Angeles-area restaurants, he didn't belong to the chapter, and his eateries received worse ratings than rivals who were lesser known but had paid $300 in fees, the piece adds.
The BBB is hoping to regain credibility in the Los Angeles market by starting a "virtual BBB" at la.bbb.org, Hurt said. She added that she appreciates "the patience of businesses and consumers while we rebuild.”
Whether consumers will stick around when they could visit Yelp or other review sites remains to be seen.
Our business in the Seattle area received a telephone solicitation from the Better Business Bureau to become a member. When we expressed our initial hesitance over cost the representative said "that would be a bad choice. We're not very kind to businesses that don't join."
I hung up the phone, we had a business meeting, and we decided our business would never join the BBB.
Bribery is anyone really shocked this is the US these days you can only bribe if your famous or rich. Companies will do anything to gain a competitive advantage except bribing the government.
Wait word is in they do bribe the government its called lobbying, Super PACS, and campaign contributions.
BBB.....Is a joke, when we were in business....The wife dropped suscribe after a year or so..
She built the Company, on the performance and "word of mouth."
Chambers of Commerce are not much better; Depending where you live ??
We had their "pretty little plaque" on our wall..
Many or much of their ratings or info, is not updated and un-reliable...
Same with Dun&Brad...Just a ranking, check...Money maker for them.
Excellent service, performance and product is what built her Business, and everyone new it..
Only complaint, was someone that had spent $40-50 bucks....They were wrong and lied, we gave them back their money...And threw them out of the place or ask them to leave..
They apologized later, but we did not want their business, they were a headache everywhere.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
A basic income policy can actually ensure a decent standard of living for everyone.
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
- 5 myths about late payments and your FICO scores
- Auto loan interest rates hit record low
[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
More Market News
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.