bbb roundup-an investigation of the Better Business Bureau
 Lead story on the Better Business Bureau
Investigation of the Los Angeles Better Business Bureau
News Reports Clearing House of Filed Stories on the BBB
Side by Side Comparisons of Grades given by the BBB to like companies
BBB misconceptions and myths about the Better Business Bureau
bbb roundup grades the BBB using Better Business Bureaus Own Standards
Sign Our Petiton Against BBB
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contact bbb roundup if you have a story or incident from interacting with the Better Business Bureau
Editorial and Op Ed pieces about the BBB


      AN INVESTIGATIVE NEWS SERIES
    ON THE STANDARDS AND PRACTICES   
    OF THE BETTER BUSINESS BUREAU

         START WITH TRUTH


 
Top Myth About The BBB

1.  The BBB is a government organization.
Of all the myths and misunderstandings about the BBB, the erroneous belief that they are a government regulatory organization is the most pervasive.  In a recent straw poll, over 70% of respondents incorrectly thought that the BBB was a government organization.  In actuality, the BBB is a private 501(c)(6) non-profit organization.

According to their own statistics, 70% of consumers say they are more likely to buy from a BBB acccredited business and 84% believe this BBB accreditation means a business meets high standards of trustworthiness.1  With this great brand awareness comes great responsibility to ensure that the BBB itself maintains high standards of trust and reliability, so that their ratings of businesses are accurate, fair, and true. 
Another Misconception About The BBB

2.  Consumer Reports is to products as BBB is to companies.
Both Consumer Reports (Consumer Union or CU) and the Better Business Bureau (BBB were created to protect consumers from false, misleading, or grandious advertising claims.  The BBB was established in 1912 as a self-governing body to police misleading advertising. CU was established in 1936 in response to advertising flooding the mass media.    Both CU and BBB are non-profit organizations.  CU judges products, the BBB judges businesses.

In spite of these similarities, there is a marked difference in their business models.  Consumer Reports is funded through subscriptions from consumers who are interested in their reviews of products.  The BBB is funded by memberships paid for by businesses.  This rightly or wrongly gives the appearance of a conflict of interest.

3.  The BBB is a nationwide organization

It has been documented by more than one reporter that there exist many discrepancies between the 128 regional BBB bureaus in how they solicit money, how they treat consumer complaints, and how they grade businesses. 

For example, Judy Mills, President and CEO of the Southwest Missouri BBB states, "Variables plugged into the (grading) algorithm include government actions against a business."2   Conversely, Howard Schwartz, spokesperson for the Connecticut Business Bureau, is quoted as saying "Your Connecticut Better Business Bureau is not a government agency and does not report on government actions."3 

Additionally, there appears to be little oversight or training on the part of the national BBB organization to ensure that the regional BBB offices or chapters adhere to the same standards.  There is no mechanism in place to complain to the BBB about the BBB.  In fact, the BBB isn't even a member of the Better Business Bureau.4
 Do Myths Matter?

When myths and misconceptions take the place of truth they create a situation where corruption and abuse are possible.  In the absence of zealous oversight, human nature being what it is, there will invariably be individuals who seek to take advantage of such a situation for their own benefit.  Therefore, it is important to establish what level of oversight the National BBB maintains on its regional BBB chapters, and whether or not any regional BBB chapters have used the power they wield for personal gain.  bbbroundup is commited to finding the answers to these issues in upcoming editions.



Footnotes and References
1.  how stuff works
2.  springfield business journal
3.  hartford courant
4.  how stuff works
Editor's note:  Neither I or this website have a problem with the Better Business Bureau.  Indeed, there is a need for a consumer advocacy group that the public can turn to, and in most cases, the Better Business Bureau fulfills this role adequately.  What we do have a problem with is the BBB's "A-F" grading system.  It is demonstratively biased, based on hearsay, weighted in favor of dues paying members and offers no recourse when the BBB makes an error.  It is obvious the Better Business Bureau does not now, nor ever will have, the resources to fully investigate the four million businesses in their database, much less grade them with any sense of accuracy.  It's an impossible job, and to think otherwise is a mistake that the BBB should acknowledge so they can get back to their reason for existence--protecting the consumer.  There's an old saying, "who will watch the watchers" and it applies here as the BBB has set themselves up to be above the law.  We are simply here to help the Better Business Bureau do a better job so that they may properly serve the consumer, the business community and themselves.
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