Source: http://abcnews.go.com/Blotter
Author: JOSEPH RHEE
Date: Nov. 16, 2010

Connecticut Attorney General Richard Blumenthal: “BBB Rating System is Unworthy of Consumer Trust”

“Right now, this rating system is really unworthy of consumer trust or confidence,” said Connecticut attorney general Richard Blumenthal in an interview that was broadcast Friday on 20/20. In an official demand letter sent to the national headquarters of the Better Business Bureau Thursday, Blumenthal called on the BBB to stop using its grading system, which he said was “potentially harmful and misleading” to consumers.

Read Attorney General Blumenthal’s 3 Page Demand Letter to the BBB!!

Cox defended the BBB accreditation and ratings systems, saying it was “not about generating money,” said the A minus grade for Hamas was a mistake.

Better Business Bureau: Pay for Play?

Yet, as part of the ABC News investigation, an ABC News producer with a camera was present as two small business owners in Los Angeles were told by Better Business Bureau tele-marketers that their grades of C could be raised to A plus if they paid $395 membership fees. Terri Hartman, the manager of a Los Angeles antique fixtures store, Liz’s Antique Hardware, was told only a payment could change her grade, based on one old complaint that had already been resolved. “So, if I don’t pay, even though the complaint has been resolved, I still have a C rating?” Hartman then read off her credit card number and the next business day the C grade was replaced with an A plus, and the one complaint was wiped off the record. In a second case, Carmen Tellez, the owner of a company that provides clowns for parties was also told she had to pay to fix her C- grade, based on a two-year old complaint that she says had already been resolved. The C minus became an A plus the very next day after she provided her credit card number for the $395 charge. “If I’m paying for a grade, then how are the customers supposed to really trust the Better Business Bureau?” she asked. Cox said the examples provided by ABC News were violations of sales policy and not a standard way of doing business. “The BBB is not operating fraudulently,” Cox said. In his demand letter to the BBB, Attorney General Blumenthal said, “I am deeply concerned that certain BBB practices threaten its reputation and effectiveness as a reliable resource for consumers.”

BBB media relations manager Allison Southwick said that the BBB had worked with Attorneys General across the country, including Blumenthal, to fight fraud. “We disagree with his characterization that BBB does not adequately disclose the fact that Accredited Businesses financially support BBB,” said Southwick. “However, we are always interested in hearing from our partners in consumer advocacy and are pleased to accept constructive feedback from his office and other consumer advocates.” “We have made good progress in working with his office on these issues, and anticipate that we will satisfactorily address his concerns,” said Southwick.

Source: http://abcnews.go.com/Blotter
Author: JOSEPH RHEE and BRIAN ROSS
Date: Nov. 12, 2010

Watch the 20/20 Investigative Report Now Below!

The Better Business Bureau, one of the country’s best known consumer watchdog groups, is being accused by business owners of running a “pay for play” scheme in which A plus ratings are awarded to those who pay membership fees, and F ratings used to punish those who don’t.

To prove the point, a group of Los Angeles business owners paid $425 to the Better Business Bureau and were able to obtain an A minus grade for a non-existent company called Hamas, named after the Middle Eastern terror group.

“Right now, this rating system is really unworthy of consumer trust or confidence,” said Connecticut attorney general Richard Blumenthal in an interview to be broadcast as part of an ABC News investigation airing tonight on 20/20.

In an official demand letter sent to the national headquarters of the Better Business Bureau Thursday, Blumenthal called on the BBB to stop using its grading system, which he said was “potentially harmful and misleading” to consumers.

“The BBB accreditation and the BBB ratings systems is not about generating money,” said BBB national president and CEO Steve Cox. He said the A minus grade for Hamas was given in error. “Plain and simple, we made a mistake,” Cox told ABC News.

Errors seem to abound at the Better Business Bureau. As reported by an anonymous blogger the BBB also awarded an A minus rating to a non-existent sushi restaurant in Santa Ana, California and an A plus to a skinhead, neo-Nazi web site called Stormfront.

Each listing cost $425.

“They ran the credit card and within 12 hours they were an approved, accredited member,” said the anonymous blogger, who runs a site called bbbroundup.com.

“They’re more interested in the money than their credibility,” he said.

The BBB’s Cox said the three listings were all mistakes made by sales people.

“That’s an inaccurate statement that business people are able to buy A’s,” Cox said. “We have more than 500,000 non-accredited businesses who have A ratings,” he added.

Better Business Bureau: Pay for Play?

Yet, as part of the ABC News investigation, an ABC News producer with a camera was present as two small business owners in Los Angeles were told by Better Business Bureau tele-marketers that their grades of C could be raised to A plus if they paid $395 membership fees.

Terri Hartman, the manager of a Los Angeles antique fixtures store, Liz’s Antique Hardware, was told only a payment could change her grade, based on one old complaint that had already been resolved.

“So, if I don’t pay, even though the complaint has been resolved, I still have a C rating?”

Hartman then read off her credit card number and the next business day the C grade was replaced with an A plus, and the one complaint was wiped off the record.

In a second case, Carmen Tellez, the owner of a company that provides clowns for parties was also told she had to pay to fix her C- grade, based on a two-year old complaint that she says had already been resolved.

The C minus became an A plus the very next day after she provided her credit card number for the $395 charge.

“If I’m paying for a grade, then how are the customers supposed to really trust the Better Business Bureau?” she asked.

Cox said the examples provided by ABC News were violations of sales policy and not a standard way of doing business.

“The BBB is not operating fraudulently,” Cox said.

In his demand letter to the BBB, the Connecticut attorney general said, “I am deeply concerned that certain BBB practices threaten its reputation and effectiveness as a reliable resource for consumers.”

Allison Southwick, media relations manager for the BBB, said that the BBB had worked with Attorneys General across the country, including Blumenthal, to fight fraud. “We disagree with his characterization that BBB does not adequately disclose the fact that Accredited Businesses financially support BBB,” said Southwick. “However, we are always interested in hearing from our partners in consumer advocacy and are pleased to accept constructive feedback from his office and other consumer advocates.”

“We have made good progress in working with his office on these issues, and anticipate that we will satisfactorily address his concerns,” said Southwick.

Better Business Bureau Grading System

The Better Business Bureau, a non-profit group that began 98 years ago, instituted its A plus through F grading system just two years ago, replacing a “satisfactory/unsatisfactory” ratings system.

One of the first to raise concerns about the new grading system was New York Congressman Anthony Weiner. Weiner was investigating complaints to his office about the popular precious metals dealer Goldine. Some customers had alleged they were ripped off after responding to Goldline’s television ads, which appear in heavy circulation during conservative talk radio and television programs.

Goldline responded to Weiner’s criticism in part by pointing to the stamp of approval the company had received from one of the nation’s most respected consumer groups.

“We are proud to be rated A+ from the Better Business Bureau,” Goldline VP Scott Carter said at a congressional hearing convened by Weiner in September.

Weiner told ABC News he considered Goldline’s A plus grade to be suspect.

Weiner and other critics say they believe the BBB has used the new grading system as part of an extensive tele-marketing campaign to increase membership and revenue.

Ritz-Carlton, Wolfgang Puck Get Fs

An ABC NEWS examination of filings with the federal government revealed that at least 25 of the Better Business Bureau’s top officers had salaries in excess of $100,000.

The head of the Los Angeles Better Business Bureau, William Mitchell, was paid more than $400,000, according to the Better business Bureau.

“I think the Better Business Bureau changed course and lost its way by adopting a system of pay to play that maybe enhanced its revenues but also greatly diminished its credibility and honesty,” said attorney general Blumenthal, who was elected to the United States Senate from Connecticut last week.

“It’s very troubling and it could be illegal because the failure to disclose to consumers could well be deceptive and misleading,” he added.

The ABC News investigation found numerous examples of well-known companies that are not members of the Better Business Bureau being branded with F grades, often apparently based on scant evidence or a small number of complaints.

The five-star Ritz Carlton Hotel in Boston was given a F rating after only two complaints.

“A million customers served, two complaints resulting in an F rating, seems to be somewhat unusual, to say the least, ” hotel general manager Erwin Schinnerl told WCVB-TV in Boston.

Celebrity chef Wolfgang Puck told ABC News that parts of his food and restaurant empire have received an F grade because he refused to pay to join the Better Business Bureau.

“You know, if you become a member, you’re sure to get an A, but if you don’t pay, it’s very difficult to get an A,” said Puck, who has been a regular on the ABC News program “Good Morning America” since 1986.

“I think where you have to join an organization to get a good grade is wrong,” Puck said.

Source1: http://www.ctwatchdog.com
Source2: http://www.bbbroundup.com
Date: Jul 21, 2010
Author: George Gombossy

The Southland Better Business Bureau in California today admitted that it made a mistake by accrediting a fake company called Hamas and giving it an A- rating, but insists that it does not damage its credibility or that of the Better Business Bureau.

Unidentified critics of the BBB’s letter grade system – to show how high grades can be purchased – signed up two non-existent businesses, paid $425 for each to the Southland BBB (Los Angeles area) and both businesses were immediately up on the BBB.org web site as accredited businesses with prized A- ratings.

Normally, a new business seeking to get on the BBB.org site without paying the annual accreditation fee would get a C or slightly better rating, never an A. It takes cash for that to happen.

One of the sites was called Hamas – an obvious reference to the terrorist organization in the Middle East – and said on the BBB site that its purpose was to provide “educational programs for troubled youth”

The BBB published on its site the following:

Our opinion of what this rating means:

An excellent rating. A company with this rating may not rate higher because of a greater number of rate-lowering factors, but we do not consider them to be factors that would likely adversely affect consumer transactions.

“Jimmy Rivers,” a former journalist and now a California businessman has been writing about the Better Business Bureau’s letter grading system for two years – like I have – and disclosed the Hamas incident earlier this week on his website www.bbbroundup.com.

Today I called Gary Almond, vice president at the Southland BBB organization – the largest in the country.

Almost said his staffers got taken.

“They mislead us,” he said, insisting that proof that the BBB will give its A rating to anyone with a phone and a credit card does not damage its credibility.

“We have systems that check” to make sure businesses are legitimate, he said.

In this case, he said, his staff simply made a mistake. He said his staff did call the telephone number the business provided to make sure it existed.

He also said the money is being returned to the people who paid for the accreditations, which were taken down yesterday from the website.

Almond had to rush off so he did not have an opportunity to explain why Starbucks, which did not pay to get accredited, has much lower grades for its stores in California from the BBB. But if you go to www.bbbroundup.com you will get Jimmy Rivers’ answer. By the way, that is not his real name. He keeps that confidential to protect himself and his friends from retaliation from the BBB, which has been trying like crazy to learn his identity.

“So, where were these standards when the BBB accredited and welcomed the terrorist group HAMAS as a member?,” Rivers asks in his column.

“Now in case one might think this an isolated instance, be assured it’s not. A group of angry and frustrated businesses across the United States and Canada have decided to fight back. The registering of these BOGUS BUSINESSES has been ongoing for quite some time. The HAMAS registered with the BBB does not actually exist, except as a member of the Better Business Bureau. Here’s another Bogus Business that was awarded BBB accreditation from back in June of this year. Whatever happened to the review and acceptance that’s supposed to be done by the local Board of Directors of the BBB?”

“When I first started my investigation I found pretty early on that they were a corrupt and flawed organization. Never in my wildest dreams did I comprehend how fully invested the Better Business Bureau was in greed, hypocrisy and arrogance. The fact that anyone can call up the BBB and wave a credit card in front of them and get an “A” grade is just plain evil. It certainly exposes their grading system as being totally useless.”

“Unfortunately, it is the consumer and the small business who suffer from the BBB’s greed. My take is that the BBB should be shut down. Barring that, they need to immediately pull all grades from their websites and put right all that they have done wrong,” Rivers said.

In an editorial on his website, Rivers said expect more disclosures.

“And don’t forget readers, bbbroundup knows of dozens and dozens of other bogus businesses that have ALREADY received their accreditation and grade from various BBBs in the US and Canada.”

Source:  Business Wire / Find Articles.com
Date:  Oct. 3, 2003

IRVINE, Calif.–(BUSINESS WIRE)–Oct. 3, 2003

The National Consumer Council announced that it has filed a suit against William G. Mitchell and the Better Business Bureau of the Southland seeking damages in excess of $20 million. The suit alleges that Mitchell, the President of the Southland BBBS, which is a private, nonprofit, non-governmental, self-regulatory organization, has demonstrated unfair practices by using personal conflict of interest to fuel the company’s “reliability reports.”

In a civil complaint filed Monday, the NCC alleges that Mitchell and the BBBS have attacked the NCC in an improper and unlawful effort to halt the NCC’s success in championing the cause of consumers in the consumer debt industry.

The complaint explains that Mitchell’s attacks are part of a larger, wholesale plan to destroy organizations that promote debt negotiation as a viable option for eliminating consumer debt. Mitchell is accused of failing to disclose the extraordinarily close relationship between the BBBS and Springboard, a consumer credit counseling service organization (CCCS) that apparently is hostile to the NCC, and of which Mitchell is a board member.

The complaint explains that the NCC made extraordinary efforts to satisfy Mitchell and the BBBS, including engaging in extensive communications and meetings with Mitchell and the BBBS, as well as providing volumes of documentary evidence directly to Mitchell. The complaint notes that this evidence demonstrates that the Reliability Report published by the BBBS about the NCC was erroneous, because it failed to consider the fact that the NCC delivers a surfeit of free services to the public.

NCC spokespersons say they were compelled to file suit “because Mitchell and the BBBS are more concerned with protecting the CCCS industry and Mitchell’s self-interest” than the consuming public, and “because Mitchell insists on defaming the NCC so that he may advance his own interests.” The report concludes that “Mitchell and the BBBS are not who they purport to be,” explaining that Mitchell has failed to disclose to the public significant conflicts of interest, especially his intimate relationship with Springboard.

About the NCC

The NCC provides counseling and advice to consumers regarding the hazards of excessive consumer debt and the means of eliminating or minimizing the negative impact of such debt. It provides and manages educational programs with the cooperation of local and national educational institutions and governmental agencies. The NCC conducts a broad national media program to increase awareness, enlightenment and an understanding of solutions regarding consumer debt issues. The NCC supports a fully staffed telephone center of trained, certified consultants, whose sole purpose is to aid consumers who are working to emerge from debt.

Source1: Congressional Record E1550
Source2: http://bbbthetruth.com/
Date: August 2, 2001

CONCERN-REGARDING BUSINESS OWNERS AND THEIR EMPLOYEES
HON. CORRINE BROWN OF FLORIDA IN THE HOUSE OF REPRESENTATIVES

The following statements are taken in their entirety directly from the Congressional transcripts:

“Ms. BROWN of Florida: Mr. Speaker and fellow Members of Congress, I want to alert you to a matter of concern that I have regarding business owners and their employees, particularly small business owners, within our country.  This problem has been told to me by some of my constituents and is a problem about which business owners throughout the country have written to you.

We are a nation that is built upon the rule of law.  This has assured a system of accountability for our conduct as individuals, businesses and institutions.  Congress, as elected representatives, meets and acts to improve and refine the system in order to protect the people and their property.  The foundation as framed by our nation’s founders in the Constitution is the concept of due process and the right thereof. We each have the assurance that the law protects our person and property from libelous, slanderous, and otherwise tortuous interference with our reputation or business.

Unfortunately, I have learned that we have within our country a private organization that with the appearance of being quasi-governmental and without any legal or regulatory oversight and control can libel and slander and tortuously interfere with a small business. They can do so with virtual immunity. This organization is the National Better Business Bureau and their franchise local Better Business Bureaus. At times, some of these bureaus classify small business owners as unsatisfactory, libel and slander them with opinion and innuendo, and provide them no due process to correct the problem.

If sued in court, they argue qualified immunity under the guise of the public good. No one disputes the right of a Better Business Bureau to print facts. It is when they print falsehoods, opinion, or negative innuendo that a mechanism for redress or correction must be assured. When closely examined, however, one finds that there are Better Business Bureaus that arbitrarily and capriciously exclude and negatively classify those they don’t like. They also frequently rate companies with terrible records as being satisfactory. No written guidelines or rules are available that require the Better Business Bureau to adhere to any legal standard in their dealings with business. (With the internet, the conduct of one local Better Business Bureau is then taken as true and disseminated everywhere.)

The Better Business Bureaus also charge money for these reports. They make money without responsibility for how they make it.   Why are they above the law and other businesses? On a first-hand basis, I recently inquired of the National Better Business Bureau regarding the process and I was met with hostility and rebuke.
Prominent members of my community who tried to ascertain information about how to redress a concern with a local Better Business Bureau were hung up on by senior ranking National Better Business Bureau employees.

The process I have described is not in the public’s best interest.  It is not appropriate for us to allow our business owners and their employees, the men and women who make our country strong, to be exposed to this arbitrary and capricious process.  A right to redress the actions of the Better Business Bureau when libelous, slanderous, arbitrary, or capricious action is apparent is a fundamental right we must insure.”

As of January 25, 2009, Look How The BBB of Metro Atlanta gives an “A” and “A+” to Dan & Barbara Jape’s “Reliables” (Reliable Heating & Air Conditioning, LLC) even though the BBB knows, or should have known, of their many problems!

Is it because they have paid the BBB a lot of money?

Here is what the BBB says about the “Reliables” (click on images to enlarge):


To add insult to this A+ BBB Rating, we noticed this posting on the web (Click on picture to enlarge):

Reliable Heating and Air Web Comment

Upon further investigation, we found a slew of troubling information that would indicate this BBB member, Reliable Heating and Air & owner Dan Jape, have no business having an A+ Rating with the BBB.

Business Problem History of Reliable Heating & Air and Owner Dan Jape:

1.) The problems start in 1989 when a supplier files suit for debts owed and takes a default judgment against Dan and Barbara Jape dba Reliable Heating and Air. Page 1, Page 2

2.) In March 1990, Dan and Barbara Jape dba Reliable Heating and Air and dba Jape Air, Inc. file for Chapter 13 bankruptcy. Page 1

3.) In the bankruptcy filing, the Japes claim Dan works as an employee for Reliable Services and that his mother Betty Jape owns the company. Page 1

4.) In this same bankruptcy filing, the Japes claim Jape Air, Inc. was dissolved in March of 1990 but was operated as a dba of Reliable Heating & Air and was also owned by Betty Jape. Page 1 Page 2

5.) The total debts in this bankruptcy were $160,668. Page 1 Page 2 Page 3 Page 4 Page 5

6.) In late 1993, the bankruptcy trustee states the Japes have failed to make payments and recommends dismissal of their bankruptcy protection. Page 1

7.) The judge agrees and dismisses their bankruptcy. Page 1

8.) In May of 1994, just six months after their last dismissal, the Japes file bankruptcy again and the IRS files a claim for $101,466. Page 1

9.) The next day Bank South files a claim for $54,507. Page 1

10.) The Japes file a court document stating Daniel Jape was formerly known as Jape Air, Inc. and Reliance Heating and Air. Page 1

11.) In this same document, the Japes claim Reliable Services Company is owned by “Debtors Mother”. Page 1

12.) In March 1996, the trustee files a request to dismiss the bankruptcy because no payments are being made. Page 1

13.) The judge dismisses the bankruptcy. Page 1

14.) In 2005, Barbara Jape files for a protective order against Dan Jape. Page 1

15.) In her affidavit for the protective order, Barbara Jape states that she has paid Dan a salary for two years just to stay away. She also mentions other acts.
Page 1 Page 2

16.) Dan Jape is served with the protective order while in jail. Page 1

17.) In the affidavit for the protective order, Barbara Jape states her belief of Dan’s criminal history. Page 1

18.) An affidavit for arrest is issued for Dan Jape for Violation of Temporary Protective Order. Page 1 Page 2

19.) An affidavit for arrest is issued for Dan Jape for Computer Theft. Page 1

20.) An affidavit for arrest is issued for Dan Jape for Burglary. Page 1

21.) An affidavit for arrest is issued for Dan Jape for Stalking. Page 1

22.) In a court filing by his attorney, Dan Jape states he is unemployed and looking for a job outside of Georgia. Page 1

23.) In late 2005, Reliable Air, Inc. files bankruptcy. The debts owed are a large amount. Page 1 Page 2 Page 3

24.) Listed in the divorce filing, the Japes have been blessed with many boats, ATV’s and motorcycles. Page 1

25.) In the divorce case, Barbara Jape requests drug testing of her husband Dan. Page 1 Page 2

26.) In an email to his wife Barbara, Dan explains the situation. Page 1

27.) In an email to his daughter, Dan explains the situation. Page 1 Page 2

28.) Dan’s daughter Elizabeth files an affidavit with the court discussing Dan’s behavior. Page 1 Page 2

29.) Robert Loebl files an affidavit discussing Dan’s behavior. Page 1

30.) David Keener files an affidavit discussing Dan’s behavior. Page 1 Page 2 Page 3

31.) Frank Infante files an affidavit discussing Dan’s behavior. Page 1

32.) Jeff Barber sends an email discussing Dan’s behavior. Page 1

33.) Tim Wray files an affidavit discussing Dan’s behavior. Page 1

34.) Anne Lawson files an affidavit discussing Dan’s behavior. Page 1 Page 2

35.) Linda Burkhoff files an affidavit discussing Dan’s behavior. Page 1

36.) In late 2006, Dan’s lawyer states he does not have much money. Page 1 Page 2

37.) In mid-2007, Dan Jape testifies that Barbara Jape’s company has done crappy work and ripping customers off. Page 1 Page 2

38.) Dan testifies with his criminal record, he can’t find work. Page 1 Page 2

39.) The court discovers a filing by Dan Jape stating he was conducting a business called Reliable Heating & Air. No mention of his mother Betty Jape. Page 1

40.) The judge starts to wonder about Betty Jape’s involvement in these businesses. Page 1

41.) The judge states Reliable Air, Inc. is insolvent and tat these various companies appear to be a shell game. Page 1 Page 2 Page 3 Page 4

42.) The judge states that after looking at the prior bankruptcies and this one, the Jape’s business “…has never really been all that successful.” Page 1 Page 2

43.) The judge states that “…this business has always been in trouble, financially.” Page 1

Here is a list of the different business names these folks have used:

• Dan and Barbara Jape dba Reliable Heating and Air
• Dan and Barbara Jape dba Jape Air, Inc.
• Jape Air, Inc.
• Reliable Services
• Reliable Services Company
• Reliable Air, Inc.

Sources:

For further information regarding the business problems of A+ BBB Member, Reliable Heating & Air, we encourage you to check our sources!

Here is the Complete List of Official Reliable Heating & Air Court Documents in .pdf format. 

Disclaimer: The information contained herein is for informational purposes only.  The information contained herein is believed accurate but is not warranted.  We encourage all interested parties to verify the information contained herein on their own.  The information contained herein was derived from public information sources, from our records, or from Reports or Complaints filed with us.

Source:  http://articles.latimes.com/
Author: DAVID LAZARUS
Email: david.lazarus@latimes.com
Date: January 21, 2009
Article Title:  Better Business Bureau grades companies on a peculiar curve

Paying the BBB to be listed as an accredited business appears to have instant benefits in the agency’s ratings.

If you check out Wolfgang Puck’s Spago restaurant on the Better Business Bureau’s website, you’ll discover that, under the organization’s new rating system, the world-famous Beverly Hills eatery merits a grade of B-minus.

Why? That’s hard to say. The online report says the bureau has received no complaints about Spago from customers and is unaware of any government actions against the restaurant.

Now check out the considerably less prominent Cafe Santorini in Pasadena. It too has prompted no complaints to the bureau and has no government actions outstanding. It gets a grade of A-plus.

One big difference: Cafe Santorini pays the bureau about $350 a year to be listed as an accredited business. Spago makes no such payments and is thus an unaccredited business.

The private, nonprofit Better Business Bureau insists there’s no “pay-for-play” component to its new rating system.

But a random search of the organization’s database of about 4 million North American companies seems to show that the roughly 400,000 accredited businesses, even those that get numerous complaints, very often receive higher grades than unaccredited companies with spotless complaint records.

“There is no guarantee that an accredited business will get an A-plus,” said Steve Cox, a spokesman for the Better Business Bureau. “But should they get an A-plus? The answer is yes if they uphold the standards we espouse in the marketplace.”

Then why do so many unaccredited businesses get significantly lower grades?

“I can’t explain that,” Cox replied. “Clearly we need to do a better job in articulating what the differences are.”

The bureau announced this month that it would change its ratings to a letter grade system from the previous “satisfactory or unsatisfactory” system.

“We wanted to get rid of any ambiguity,” Cox said. “A letter grade speaks to our degree of confidence that a business operates in a trustworthy manner. We’re talking about business integrity.”

If that’s the case, the Better Business Bureau may want to get its own house in order first.

The majority of the bureau’s funds come from selling accreditation to companies. Depending on the size of the business, accreditation costs between several hundred and several thousand dollars a year, Cox said.

Accredited businesses are expected to uphold the bureau’s standards for good conduct. In return, the companies can use the bureau’s logo in their advertising and marketing materials.

Panos Haitayan, co-owner of Cafe Santorini, said his restaurant’s A-plus rating reflects its high-quality food and service. “We earned it,” he said.

Does he think Cafe Santorini would be rated A-plus even if it were unaccredited?

“I would say so,” Haitayan said.

Nope. Cox said the highest grade an unaccredited business can get is an A. Only an accredited company — in other words, one that pays an annual fee — can receive an A-plus.

This isn’t spelled out anywhere on the bureau’s website. The site of its Los Angeles office says only that “the highest rating assigned to a company is A-plus; the lowest is F. Between those two ratings are nine others in order from higher to lower.”

A B-minus, according to the site, “may relate to length of time in business, a past problem that’s been corrected, or something else that does not cause problems for consumers.”

In Spago’s case, length of time in business wouldn’t seem to be a factor. The original restaurant above the Sunset Strip opened in 1982. (Cafe Santorini opened in 1993.) If there were any past problems or other issues associated with Spago, the bureau doesn’t name them.

Puck couldn’t be reached for comment — he’s in the process of opening yet another restaurant. But a spokeswoman said the B-minus grade was a surprise and that the company would be taking up the matter with the Better Business Bureau.

Some companies get lower grades just for being in a certain industry. Businesses deemed to be rife with scammers — overseas lotteries, for instance, or online casinos — automatically get lower grades.

The same applies for companies in what the bureau calls industries with “inherent problems,” such as payday lenders or credit-repair services.

A variety of criteria are applied to the grading of a business, Cox said, including an analysis of its advertising and the amount of background information available. He was unable to say how these criteria might be weighted in the case of companies that receive no complaints from customers.

Aside from paying annual fees, accredited companies are required to fill out a questionnaire detailing their business practices. Cox said the bureau might approve accreditation without actually visiting a company or experiencing its service firsthand.

“A visit to the organization could happen,” he said. “But it could be a telephonic process.”

An accredited business automatically receives a half-grade boost to its rating. A B-minus business, in other words, will become a B.

But in my unscientific searches of companies in a variety of service-oriented industries, I found that accredited companies almost always got A-pluses. Those that didn’t often received an A or A-minus.

Their unaccredited kin, meanwhile, often made do with a B or B-minus.

A search for accredited travel agencies in L.A. produces 15 listings. All but two are A-plus operations. One of the laggards, Southfares.com, received an A-minus after getting a single complaint from a customer, which the bureau’s site says the company resolved satisfactorily.

The other outlier, Lion of Judah Travel, received an A-minus after it “responded to and gave proper consideration to most complaints.” However, the bureau notes that “some complaints are unresolved, meaning the company failed to properly address the complaint allegations or their response was inadequate.”

Compare that with another Los Angeles agency, All American Travel, which didn’t pay for accreditation. It earned a B-minus despite never having received a single complaint.

Which would you rather do business with?

Subject: RE: BBB-Blog Mechanics Responds

From: scottjordan@live.com

Date: Thu, March 25, 2010 10:33 am

To: news@mechanicsresponds.com

Great job! Your work will help many understand the BBB isn’t all it is cracked up to be. Thanks for putting the link to the BEB on the front page. The BEB will get well over a 1,000 hits in March, and over 2,000 since Feb 1. Interest and knowledge in what the BBB is actually doing to business is on the rise. Did you see my article on the BBB giving a failing bank an A? This article also makes the point that BBB board members may be culpable for BBB policies and standards.

The evidence and pressure is mounting against the BBB.
I will add the link blog-bbb.com to the BEB website today!

Thanks again,
Scott

July 23, 2008
By David Wallace
Source: http://www.searchengineguide.com/david-wallace/

I came across a story posted at Search Engine Land pointing out that Google has an “unsatisfactory” record with The Better Business Bureau. How can a company voted “top global brand” in 2008 at the same time have an unsatisfactory record with the BBB? Apparently because out of 331 complaints filed against the search giant over the past three years, 2 were listed as unresolved. that’s right – just 2! Despite this, Google continues to lead the way in search and nothing on the horizon seems to be able to change that.

This got me thinking as to whether the BBB is still a useful resource in today’s online world. Their mission is to be the leader in advancing “marketplace trust” which they accomplish by creating communities of trustworthy businesses, setting standards for marketplace trust, encouraging and supporting best practices, celebrating marketplace role models, and denouncing substandard marketplace behavior. Businesses have always been proud to display their BBB membership, which indicates they are “more trustworthy” than non BBB member companies.

Two things have me concerned however as to whether the BBB has outlived their usefulness, especially in the case of “online” businesses.

1. BBB Discriminates Against Online Business

When a company becomes a BBB member, they are given a certificate that announces their membership. Many will proudly display this in their offices or storefronts so that customers can see they are a member. They may also use the BBB logo it in print advertising to identify their membership. However, should a company decide to announce their membership online via a web site for example, they can only do so through the BBB’s Online Reliability Program. Did I mention that this requires an extra fee?

I have argued in the past that the BBB’s policy to charge extra when displaying the BBB logo online is a discriminatory practice against online business, especially those who have no other way to announce their membership (i.e. they don’t have a physical location or storefront). Online businesses not only have to pay the annual BBB member dues which are based on the number of employees they have, they also have to pay a separate fee to announce that membership on their sites.

The Better Business Bureau needs to recognize that most businesses today have an online presence and that many of their existing or potential customers will visit them there long before entering a physical location. As a BBB member, a company should have the right to announce that membership on their web sites, social media profiles, online press releases and the like, without having to pay extra fees. Until the BBB changes their policy on this, it is nothing short of discriminatory.

2. Do People Even Use The BBB Any Longer?

Since joining the Better Business Bureau in 1998, I can count the number of clients that have been referred as a result of them on both hands. On the other hand, the number of clients who have found us online via organic search results is phenomenal.

This leads me to wonder how much credibility consumers actually place in BBB valuations. It would seem to me that businesses should have much more concern over what people are saying about them online. I’m talking about online reputation. For example, conduct a search for any brand name – even your own. What do the first page of search results say? Are they positive, negative or even indifferent? This is the space where many consumers are now looking when qualifying whether they want to do business with a company or not.

Every time the BBB semi-annual billing statement has arrived in the mail, I have wrestled as to whether to continue my company’s membership or not. So far, the BBB has won although I have refused to pay the extra fees for the Online Reliability Program for the last few years even though the BBB logo is present on our sites.

I am much more concerned over what the search results say about our company and if you are a business owner you should as well. If something negative begins to show up on the first page, especially above the fold, it can cause irreparable damage to your business. Many companies have discovered this the hard way which then forced them into the very often difficult task of having to repair their tarnished reputations.

A Better Solution?

One of the beneficial things about BBB membership, at least for consumers, is that you as a company agree to work out disputes with clients. This however is a defense mechanism. In other words, you do not react until the consumer is upset about something. A proactive approach is a much better solution in my opinion. How does one go about accomplishing this? There are several ways to do this with the main idea being “open yourself to communication.”

This can be done with a company blog that is open to comments. Putting out quality content that is somehow related to your industry or even the specific products and services you offer is a good start. Allowing consumers to interact with you via the comment system is the icing on the cake. It will allow them to engage you of which they might praise you, probe you for more information or even criticize you. It also allows you to react to them, oftentimes long before negativity hits the search results or the BBB.

Getting involved with social media is also a great way to be proactive. Setting up profiles on all the major social media sites using your brand name(s) is a great way to control what the search results are saying about you. But don’t stop there. Get involved with social media, especially when people are talking about you.

It’s all about getting involved in the conversation. Consumers want an open dialog with the companies they choose to do business with. So give them what they want.

This is what Google does so well. They give consumers what they want – relevant search as well as a wide variety of other products. They keep the door open for communication as well. That is why an unsatisfactory record with the BBB has not hurt them in the least. They continue to grow, acquire and dominate.

Our BBB membership comes due in December and to be honest with you, I think I might let it go this time around. I just don’t see the value any longer when there are so many other productive things you can do to establish trust with consumers.