The Better Business Bureau (BBB) is a scam (fees, commission, retail business)

[mbuszu]

It's funny, but years ago my mother used to always threaten companies which wronged her with "I'll call or file a complaint with the BBB" and I grew up believing the BBB was some sort of Government Regulatory agency. I used to check it before ordering goods online to verify that a business was reliable. I stopped checking it when I realized that I got more reliable and detailed information from actual customer reviews.

Now that I own a retail business I've learned the hard truth, the BBB is nothing more than a corporate scam. 1) They are a private for-profit company, run as a franchise but with a name leading everyone to believe it's Government related, 2) Their rating system penalizes companies which have no complaints filed against them, but which are not members and 3) If the company owners don't fill out detailed business profile questionnaires their ratings are lowered.

Today you have to typically pay in excess of 250.00 per year to be a BBB member. Basically you end up signing a form on which you commit to running your business ethically. As a member if you have issues and resolve them, they don't get wiped from your profile, the BBB just states that they've been resolved (and note that your rating is still affected by the complaint filing). So in effect, other than artificially providing you with an initially higher "rating" the BBB doesn't really do anything for you at all (other than lighten your wallet).

I have to ask, how is any of the above legal? I'm upset that my business which has no complaints filed against it, has a ridiculously low rating of a C- just because I won't fill out a BBB questionnaire. Why should I provide the BBB with anything about my business... if they want to learn about it, then they should do as everyone else does and buy lists or directly access the county clerks office (or other Government offices which have my information).

I spoke on the phone with my local BBB representative (probably the owner of the Franchise) and she directly admitted, yeap the C- could definitely be interpreted as a negative rating and indeed if I provide more information about my business to them it would go up (even if I didn't join). She wouldn't commit to how high my rating would go up though (she said "it's a complicated algorithm") and I told her well unless we're talking about my rating going to A+ there's no motivation for me to give up any information about my business.

It all just seems ridiculous... what are your thoughts or experiences on the BBB?

[Omaha Rocks]

My experience with the Better Business Bureau has led me to the conclusion that it is one huge pile of crap. It is a complete and total joke, and a sham organization.


I had a local plumbing company - an A+ Member of the BBB - absolutely FAIL to do the job they were hired to do. They then charged me triple what they said the bill would be.

So I filed a formal complaint with the BBB. This, of course, was a complete and total waste of time.


Here's what it boils down to: If a business pays their annual dues to the BBB (racketeering fee), they will have a A+ Rating. Period. I could sue this idiot plumbing company in a court of law - and win - and the BBB would continue to give them an A+ Rating.

In fact, any company could be sued unlimited times, and lose each time. But unless the "arbitration" went through the BBB - using their arbitrators - it would not affect their BBB rating.


So here's the bottom line folks: The Better Business Bureau is an absolutely worthless sham organization. Period.

[desertsun41]

I too agree with the posters above. Probably because they are right. I do like the description Omaha said when he called the anual fee a racketeering fee.

Every year, sometimes twice a year some clown from the BBB calls or comes into my store trying to beg and bribe me into joining. It would cost $400 a year. And since they use such high pressure salesmen I have to assume they are on commission basis to get businesses signed up.

Anyone can join. I really dont think there are any qualifications to join. There are no back round checks. I never heard of a business having to gross $250K to qualify like the OP said. The BBB is a private for profit organization with no affiliation to the govt.

It's all a bunch of hog wash.

[maf763]

With all of the customer rating sites available, there is no good reason for consumers to go to BBB for info. I wouldn't be surprised to see it disappear in the not-to-distant future.

[S6Sputnik]

Its a business that should rate it self low!

[Bigger Louie]

oh please everyone knows the BBB is a scam giving any company a nod of good standing as long as the company pays the membership fee. Try filing a complaint against a company paid up on membership fees it mysteriously never shows up on their record.

[Ultrarunner]

I completely disagree...

In CA the BBB administers the States Lemon Law program at no charge to the Consumer and the Consumer is free to accept or reject the Arbitrators decision while the manufacturer is bound by it...

If the consumer rejects the decision, the consumer can still file a lawsuit... sounds like a win for consumers... so how can this be a bad thing or a scam?

I've referred several to the program and all have been satisfied...

Personally, I had a problem that could not be resolved with Dell Computer... after several tries and getting absolutely no where with Dell... I filed a complaint with the BBB in Texas and 3 days later I received a call from Dell and they told me to have the computer repaired and reimbursed me for the repair.

Just my experiences with the Oakland CA and Austin TX BBB.

[golfgal]

A company could have a million lawsuits against it and still have a top rating with the BBB. If you are talking legal action against a company you CANNOT file a grievance with the BBB. A lot of good THAT does anyone.

[Bigger Louie]

I agree. Did you know Madoff's company was listed with the Better Business Bureau. Look what happened there. I sure several of these companies that have a scam going on our listed with the BBB. I recommend checking out the Ripoff Report online to get the facts on a company.

[Ultrarunner]

Originally Posted by Bigger Louie

I agree. Did you know Madoff's company was listed with the Better Business Bureau. Look what happened there. I sure several of these companies that have a scam going on our listed with the BBB. I recommend checking out the Ripoff Report online to get the facts on a company.

I'm not a member of the BBB and never have been...

All I can say is the BBB has come through for me and others I know... maybe the Oakland BBB is run differently than other areas...

The BBB also requires it's member to agree to arbitrate consumer disputes at the consumer's option and this is a good thing...

Last year the BBB in working with local law enforcement shut-down several charity scams here in the East Bay...

Maybe the problem is one of perception