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

       
         START WITH TRUTH



  V 1.5  Nov 2010
A DAY SPENT TALKING TO BBB WHISTLE BLOWERS
Spent the day talking with several whistle blowers, former BBB employees who have come forth in the aftermath of the BBB stories on ABC.  Here's what we've learned.

1.  The Official BBB position if a business asks a BBB Office about the ABC story is to say that this is just one particular businessman who is pissed off at the BBB because he has a bad grade.  I'm not sure what channel they were watching, but this is not a good sign that they learned anything from last night's TV exposes.  There are multiple instances of disgruntled businessmen.  And the problems described are real.  By the way, my own business is not even in the BBB database, so I guess it's not me he's talking about.

2.  Steve Cox's categorically denies the BBB uses complaints as leads.  I've got three whistle blowers that can prove him wrong.  We've got phone scripts, rebuttal scripts, lead sheets, the whole ball of wax.

3.  The outsourcing of membership sales is much more wide spread than I previously thought.  The shenanigans we've heard about (if the businesses insurance policy had run out, the sales rep would just make up a number) and the mantra that if you couldn't get the credit card on the first phone call you didn't have what it takes to work at the BBB are serious allegations.  Interestingly enough, the telemarketing outfits abandoned their efforts in Southern California in favor of more lucrative markets because they ran into so much sales resistance from Southern California businesses who hate the BBB.

We'll have more soon.  And if you work for, or have worked for the BBB, I'd love to hear from you.  Even you, Steve Cox.  editor@bbbroundup.com

By the way, just saw this comment posted on Steve Cox's Message from the President.  Interestingly enough, Steve's comments were published on November 10, 2010, two days BEFORE the ABC stories aired.  Even stranger, there were no comments until November 12th.  Here's one I appreciate from Steven (comment 57).

"Nice try Norm! You obviously work for the BBB. You seem to be very confused about the facts. There are examples of this kind of behavior all over the country. It’s time you and Mr. Cox get your heads out of the sand. The fact is that by paying the BBB you get a better grade, and in some cases, complaints just seem to disappear. The BBB has always believed it was beyond reproach, and the actions of Mr. Cox during the interview only serves to prove that fact. If Mr Cox had the phrase “I’m A Crook” stamped across his forehead, he could not have looked guiltier. The funny part is that Mr Cox and the BBB thought it would be best to run away when confronted with a complaint. I wonder how that fits in with the BBB standards of handling complaints. I think the BBB deserves an F.

And to Jimmie Rivers, thanks for all you have done and continue to do in exposing the truth about the BBB. It’s about time that the public is made aware of the facts."

You're welcome, Steven.  By the way Norm (comments 52 and 53), you need to check your facts.  It was representative Anthony Weiner (D-NY) who confronted Bill O'Reilly regarding Goldline.  And Weiner ate O'Reilly's lunch.  Attorney General Richard Blumenthal has been looking into the Connecticut BBB for well over a year and is well acquainted with the BBB Grading System.  Also, you're wrong about simply answering complaints will make a bad grade go away for a number of reasons:  in many cases, the BBB does NOT send the complaints to non-member businesses (how can you answer a complaint you never receive?), in other cases, the BBB refuses to accept a non-member businesses response as being "good enough" even when a full refund has been made, and finally as was shown on ABC 20/20, even after resolving the one complaint on their record, a Los Angeles hardware store could not improve their grade until AFTER they paid for a membership. 

Finally, just got done spending a few hours reading the comments on the hundreds and hundreds of stories that have sprung up in the last 48 hours.  Way back when we first started seeing comments after our story revealing the BBB algorithm (which they have made public since our outing it) they ran about 50/50 for or against the BBB.  Today's look found that the tide has turned.  Comments are running at least 90% against the BBB.  There are some good suggestions every so often, as well as shock and outrage.  Truly, the BBB is faced with a BP or Tiger Woods moment.  What they do at their Tuesday Board Meeting will determine whether they survive or not.  If past behavior is any indication, their arrogance will not allow them to take the actions they need to do to convince the public they are above board.  I actually hope they do the right thing and take major, meaningfull action to rectify a problem that will bring them down if ignored.

Editor's note:  There is a need for a consumer advocacy group that the public can turn to, and it used to be that the Better Business Bureau fulfilled this role adequately.  No longer.  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.  If they refuse to reform, then they must bear the consequences.
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