BBB Under Scrutiny

Link: http://www.bbbroundup.com/LosAngelesBBB08.html

BBB expects media to turn blind eye to landmark case

On May 1st, 2009, the Los Angeles Superior Court will hear arguments on important motions in a case against the Better Business Bureau of the Southland, Inc. concerning the Strategic Lawsuit Again Public Participation (anti -SLAPP Motion - Statute CC 425:16). If the judge finds against the plaintiff in the second phase of the SLAPP motion, the Better Business Bureau of Southland, Inc. (Los Angeles BBB ) may once again sidestep charges of libel, slander or defamation.

The Los Angeles BBB has used the SLAPP motion, which became law in 1992, to successfully shut down multiple lawsuits for slander, libel or defamation by arguing that the BBB performs a public service. This time around the plaintiff argued that since 90 percent of the Los Angeles BBB’s income and 40 percent of their employees are engaged in telemarketing, the Los Angeles BBB is in fact a business, not a public service organization. Initially, the judge ruled in the plaintiff’s favor but later reversed his decision when the state Court of Appeal expressed interest in the case.

The reversal brought the second phase of the SLAPP motion into play which deals with the public dimension of the issue—is the general public at risk? The plaintiff is arguing that there is real significance public dimension as they are a very small, niche market business. The defendant in this action (the Los Angeles BBB ), has argued previously that since they are a public service organization, all pronouncements from them are of interest to the general public, and therefore can't be held liable.

This story, as well as other aspects of the Better Business Bureau behavior, motives and business model, including their complaint handling process have been examined in bbbroundup.com, a website authored by Jimmie Rivers.