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AN INVESTIGATIVE NEWS SERIES ON THE STANDARDS AND PRACTICES OF THE BETTER BUSINESS BUREAU START WITH TRUTH |
| V 1.5 May 2010 | ||
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| THE
BBB DEFENSE: Strange Justification from Beck, O'Reilly and
Goldline |
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| Earlier this week, the O' Reilly Factor
discussed recent allegations made against Goldline and Glenn Beck by Rep. Anthony Weiner
(D-NY) and The
Examiner. The allegations dealt with several serious consumer
issues, but not surprisingly, Beck and O'Reilly claim the attack is
being directed by the White House. What is surprising is the that
both Beck and O'Reilly used the BBB Defense to support Goldline. The BBB Defense ignores facts, like the numerous online sites complaining about Goldline, the $200,000 plus settlement with the State of Missouri for fleecing two of its seniors, the long list of consumer complaints to the FTC ranging from several hundred to high six figure dollar claims, and cites the A+ grade from the Better Business Bureau as all the proof necessary to judge Goldline to be a fine, upstanding company. (For those of you who don't know, Goldline sells gold coins and bullion to investors. They are a sponsor of, and endorsed by Glenn Beck, which of course, brings up conflict of interest thoughts, another serious consumer issue.) As readers of bbbRoundup.com know, an A+ grade from the Better Business Bureau, especially the Los Angeles branch of same (which in the case of Goldline is the branch in question) is absolutely meaningless. To point it out as a reference is a lot like the "I was just following orders" defense, hence the nomenclature: the BBB defense. THE ANATOMY OF A GRADE: THE DEEP UNDERBELLY OF THE LOS ANGELES BBB  That the LA BBB has given Goldline an A+ grade is a fact. The first thing we notice when going to this page is that Goldline International, Inc. has been a member of the LA BBB since 1994, shortly after the time that William Mitchell gained control of the Los Angeles Better Business Bureau.  The next thing we notice when we glance upon the LA BBB's page for Goldline International, Inc. is the BBB Comments & Analysis of the Company's Business. Pretty innocuous. No cause for alarm, right? Well, not quite so fast.  Here's the same Comments and Analysis sections for one of Goldline's direct competitors, Lear Financial. One has to wonder why the same disclaimer isn't applicable to Goldline International, Inc. Two reasons come to mind: 1) It was more sloppy work from the BBB, they simply didn't put two and two together to realize Goldline sells precious metal investments. 2) It is a deliberate act of favoritism. There really aren't any other explanations, and as we'll come to see, it's highly unlikely that it was an oversight due to sloppy work.  Once again we have to question what is going on with Goldline's BBB rating. Here the LA BBB is clearly stating they know of no government action taken against this company.  What, the State of Missouri isn't a recognized government? Clearly, this $200,000 plus settlement is a government action, and is listed on a government site. It is easily found by doing a search in Google for "complaints against Goldline," it's on the first page of the search results. Took me less than a minute to find it. So once again we are confronted with either 1) more sloppy work on the part of the LA BBB or 2) a case of deliberately withholding the facts from the public.  Scrolling down the page, we come to something that is unique in my experience of perusing BBB records. If this isn't a case of pimping for a client, I don't know what is. In essence, by allowing Goldline to place their facebook and twitter feeds on the LA BBB site, they are publishing advertisements for Goldline International, Inc. I see no difference between this behavior and a flat out endorsement of Goldline International, Inc. by the Los Angeles BBB, a clear violation of their charter. We've seen some cases of downright shoddy work by the BBB which, in a best case scenario, could only be the result of the Better Business Bureau not spending any time on their research and interaction with this company. The evidence points against this scenario however, because first there is a clear and consistent pattern of preferential treatment enjoyed by Goldline International, Inc. and second, the amount of time and interaction required to set up the company's social networking ad section on their LA BBB listing is substantial and unique. Clearly, this was only enabled after much interaction between Goldline International, Inc. and the Los Angeles Better Business Bureau.  So what criteria has the Los Angeles Better Business Bureau used to bestow their A+ Grade upon Goldline International, Inc.? Let's take a look at the gold coin and bullion market in the Los Angeles area, as seen through the eyes of the Los Angeles BBB. The chart on the right compares six precious metal investment companies that have received grades ranging between A+ and A- from the LA BBB. What seems clear from this comparison is that the more complaints a company gets, the higher their grade. At least in this category, Goldline International is at the top of the class. It doesn't hurt to be a member of the LA BBB either. Clearly, we can rule out sloppy work on the part of the LA BBB as a reason for Goldline's A+ grade. Any company that has 43 complaints has definitely come to the attention of the LA BBB. So what possible reason is left for what can only be described as favoritism? Let's back up a bit.  Here's what one gets if they search the Los Angeles Better Business Bureau for Goldline. Score another unique one for Goldline. They have SIX listings, all for the same company profile. The appearance here is that the Los Angeles Better Business Bureau has found a clever way to play favorites and still remain kosher. Buy six memberships and the Los Angeles Better Business Bureau will give your company a free pass...that would seem to be the logical conclusion. Anyone at the BBB want to prove me wrong? Because at the end of the day, we're back where we started. The BBB is perhaps the worst place in the world to get financial advise (earlier articles have pointed out the BBB's own conflict of interest and poor judgment in financial sectors). Shame on you Glenn Beck and Bill O'Reilly for employing the BBB Defense. |
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| 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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