About the Better Business Bureau
Though the Better Business Bureau sounds good in concept, the companies pay to be members. Nothing is charged to you, the consumer. Companies who generally do not pay to be members have bad ratings, while companies who do pay to be members have good ratings. (source)
Consider the following:
Question: If you operate a local Better Business Bureau franchise, and a large corporation is paying you $5,000.00 in dues, would you risk upsetting that company by giving them a bad rating? If you give them a bad rating and they stop being members, who is going to pay the salaries of the people working in your local office?
Companies pay between a few hundred dollars and $10,000 to be a BBB-accredited member, and as the bureau grows, so does its reliance on those funds. Across its 112 regional offices, dues and advertising fees make up, on average, 90 percent of revenue. Some see a conflict of interest, but council CEO Steven Cole says the BBB wants members — not consumers — to pay for its programs. (source - Smart Money)
Criticisms of the BBB
The BBB does not recommend specific businesses to consumers, but simply supplies information. Regarding how a group funded by businesses can be fair to consumers, the bureau's website states that its value to businesses depends on its neutrality. (source - Smart Money)
BBBs have been accused of unduly protecting companies. The BBB responds by, at a minimum, notating complaints on the "Reliability Report" section of its web sites. (source)
Criticism on Biased Rating System
On June 1, 2009, BBB offices nationwide adopted an A-F ratings system. This grading system has been criticized for being biased in favor of companies that pay dues to BBB. (source)
The BBB of Central Illinois states on their website that only businesses which pay dues are eligible for an A+ rating. This seems to call into question the supposed neutrality of the BBB.
Criticism on Case Resolutions
It has been reported that the BBB encourages and solicits money from the very businesses they have been monitoring. This has not been beneficial to the customer as expected it to be.
BBB's soliciting of funds from business further questions it's neutrality. Numerous cases can be found in which major corporations have thousands of complaints filed against them while maintaining an A+ rating with the agency. Small business owners can receive as little as 10-20 complaints and watch their rating downgraded. Several small business owners have voiced their concerns over this practice particularly smaller businesses that must compete with multi-billion dollar powerhouses.
Membership Privileges: Use of Accreditation term
Instead of pronouncing a firm "satisfactory" or "unsatisfactory" in its reliability reports, the bureau is now issuing a new label, "accredited," that any business can obtain by becoming a BBB member.
Council CEO Steven Cole says the business will still have to meet certain standards, but a number of chapter presidents expressed concern that disturbed companies could use the label to hide problems. (source - Smart Money)
This information was taken from Wikipedia. Accessed July 09,2010.
