BBB Under Scrutiny

Link: http://www.bbbroundup.com

In an email exchange between George Gombossy of the Hartford Courant and William G. Mitchell, CEO BBB of the Southland today, Mitchell made allegations that Jimmie Rivers is in reality Jimi Petulla.

This is another in a long line of actions that demonstrate the lack of due diligence and rush to judgment practiced by the LA BBB.

FOR THE RECORD: Jimmie Rivers is NOT Jimi Petulla.

Link: http://bbbroundup.com/LosAngelesBBB07.html

Investigative reporter, Jimmie Rivers outs the original Better Business Bureau letter grade algorithm

LOS ANGELES, CALIFORNIA. APRIL 22, 2009. Editor Jimmie Rivers of bbbroundup.com revealed the actual algorithm that lies at the foundation of the BBB’s new Letter Grading system. He predicts that “after the media stops laughing, serious questions will be asked about the flaws in the BBB algorithm. The BBB complaint processing procedures also leaves much to be desired. One thing is sure, the BBB Algorithm is no Google Algorithm.“

Last month, bbbRoundup.com published some examples of algorithm-caused, goofy BBB Grades including “F” grades for both Disneyland and the Los Angeles Times. Today, bbbRoundup.com published further examples of algorithm-caused, goofy BBB Grades including “F” grades for well known movie studios and supermarkets.

The algorithm in bbbRoundup.com’s possession is three pages long. It provides point totals for 12 separate components of the algorithm. The document is the complete BBB letter grade algorithm developed by the Better Business Bureau of Southland, Inc. (LA BBB.) This algorithm forms the foundation for the letter grade algorithm launched nationwide by the Council of Better Business Bureaus or CBBB, which added four additional minor components to the LA BBB’s version of the algorithm.

The three page LA BBB algorithm may be viewed here. http://bbbroundup.com/bbbalgorithm.html

The full story on the BBB algorithm and more goofy grades is here. http://bbbroundup.com/LosAngelesBBB07.html

Media Contact:
Jimmie Rivers
310.497.4806
editor@bbbroundup.com
www.bbbRoundup.com

Link: http://www.bbbroundup.com

A reader wrote in today with the question that was the starting point for bbbroundup; "How do you get the BBB to change a bogus grade?"

When faced with an unwarranted or bogus grade from the BBB, a business has one of four options.

1. The easiest, quickest and cheapest course of action is to call up the BBB and tell them how you just found out about their wonderful services and inquire what do you have to do to join the BBB. Do NOT try to argue with them about your bogus grade, you're as likely to have your grade get worse than better by doing so. Do NOT even let the BBB know that you are aware of the negative grade. Act completely shocked when they tell you about your negative grade and say you're not sure how that could have happened as you place a high value on customer relations. Ask for their help and assistance. Be prepared to pay the $300 to $400 membership fee. This is your best bet. A business must have at least a C grade to qualify for membership, so if they take your membership fees, you should get at least a "C". And yes, it will rankle to pay this "extortion"...just chalk it up to cost of doing business.

2. Get the media involved. There are many instances where a businesses grades have been revised upwards when an obvious error is pointed out by the mainstream media. You will need to have a compelling story for them to be interested, and do not criticize the BBB in your comments to the media, just act mystified.

3. Take them to court. Be prepared to spend several hundred thousand dollars in legal fee at a minimum. Make sure you have an attorney well versed in the trial tactics of the BBB (which will be discussed in part eight of this series.)

4. From this day forward make sure you respond directly to the BBB whenever they send you a customer complaint. Do this the day the complaint comes in. State your response to the consumer clearly, logically and without emotion. Keep doing this for three years and all the negative complaints will be gone and your grade will improve.

This simple question is the heart and soul of what's wrong with the BBB. There is no national oversight body within the CBBB charged with reviewing business grades handed out by their regional offices. There is no recourse. There is no mediation or arbitration. There is no chance of presenting your case to the BBB and having them act on it according to the mission statement. As Shakespeare said, "therein lies the rub."

Link: http://www.bbbroundup.com

At first glance it seems the Better Business Bureau and Consumers Reports would have a lot in common. They both profess to be public service, consumer advocate organizations protecting the little guy from big business.

Consumer Reports tests and grades products. The BBB scores and grades businesses. From here the paths diverge.

Immediately we spot crucial differences which start with their revenue models. Consumer Reports is supported by consumer subscriptions. Consumer Reports does not accept money, or free test products, from the businesses they review. The Better Business Bureau is supported by business membership dues. The BBB DOES accept money from the businesses they review.

Another fundamental difference in the two organizations is their degree of transparency. Consumer Reports Financial Reports are up to date. The Better Business Bureau's are not. Consumer Reports offers detailed information and explanations on their testing and grading procedures. The Better Business Bureau does not offer relevant information on their grading and scoring procedures.

A public service organization, like any role model, must adhere to a higher standard. Even the appearance of impropriety is unacceptable for an organization purporting to be of public service. By accepting money from businesses they review, there is at least the appearance of impropriety clinging to the Better Business Bureau. A public service organization must also be transparent. The BBB is opaque.

BBB asks for our trust. Consumer Reports has earned our trust. BBB, you're no Consumer Reports.

To read more about the BBB hidden processes visit bbbroundup

Link: http://www.bbbroundup.com

I’ve been asked more than once why I’m doing bbbroundup. My stock answer is that “I don’t have a dog in this fight”—my own business is not on the LA BBB’s radar, nor likely to show up there soon. (I run a small consulting firm in the greater Los Angeles area with a handful of loyal clients who know they can come to me at any time and I will resolve any issue that might come up.) All of this is true.

There’s more to it than that though. My entire life has been spent rooting for the underdog, the little guy, those who dare to be different…the antithesis of Corporate America with a capital C.

Here we are in a time of grave economic crisis, and I’m once again I’m rooting for the little guy as manifested in two groups of citizens. For all those who are recently retired, or had planned to retire around now, I hope your stock portfolios go up. And for the small business I wish nothing but the best. It’s the small business who has the deck stacked against them in the best of time and who now has hind tit as the federal bailout trough. You can count the dollars small business will be getting from the feds as zero. Small business is simultaneously being battered by tighter credit, less consumer demand, increased taxes—all things that hit the small business much harder and much quicker than their big business counterpart.

And then along comes the LA BBB in one of the hardest hit regions economically in the United States and kicks small business when they’re already down through unprincipled tactics and motives, under the guise of protecting the consumer when in many instances they are actually misleading them.

Hypocrisy and violence are my only pet peeves (outside of people who wait for the light to turn green before putting on their turn signals) and I will state for the record that I’ve neither heard about nor witnessed any instance of the BBB resorting to violence. Hypocrisy is another matter.

In a time when corporate America is outsourcing help desks and designing ever more circuitous automated call centers to avoid the customer in seek of answers, the small business is more likely to have actual humans answer the phone…real humans who place a high premium on satisfying customers. The average small business owner puts in an enormous amount of hours and the one thing he doesn’t have time for is the BBB meddling in his customer satisfaction process. Especially, if he has chosen not to be a BBB member. The small business owner is much more inclined to take the direct approach in resolving issues with customers than funneling them through a middleman like the BBB. For the BBB to insert themselves in a business’ process and practice without invitation is not right. Let’s face it, 99% of American businesses have chosen NOT to be BBB members, so why should anything the BBB says be relevant?

Having said all that, I also believe it is not too late for the BBB to resurrect themselves. They’ve got a 99% upside, why not re-invent themselves as an organization offering something of value, rather than a wooden plaque? At the end of this ten part series, I will come up with both conclusions and suggestions on how the BBB could reach their potential, serve both the consumer and business sectors more efficiently and effectively, and overcome the inequities and temptations that exist in the current system.