Better not trust the Better Business Bureau

Turns out that those letter-grade scores it hands out might be nothing more than a pay-to-play scam, according to ABC News, which takes a look at the BBB tonight on "20-20." Business owners are accusing the organization of giving "A" ratings to anyone who pays membership fees and "F" ratings to those that don't. The head of the BBB denies such a connection, but just to prove the case, a group of L.A. business owners shelled out the $425 fee for a non-existent company called Hamas, named after the Middle Eastern terror group. It received an A-. From ABC:

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.

[CUT]

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.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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