Business Review & Rating firm BBB CEO Resigns after “Pay for Play” scheme revealed

Today, the CEO of the largest chapter of Better Business Bureau (BBB) resigns after ABC NEWS and a large group of business owner in L.A. revealed the “pay for play” scheme story. ABC has first followed and find that BBB is actually asking business to pay to raise their ratings with BBB. The news shows fact is provided and proved.

  • A fake company called Hamas, with a fake address is created. Immediately after paying $425 to BBB, the bogus company receives a rating of A-BBB pay for Play
  • BBB telemarketer (who are paid 45% of the first year membership fee as commission) told an undercover ABC investigator that a company’s C grade could be raised to A+ if they pay to join BBB.
  • A manager at an hardware store said their C grade was replaced by A+ the next business day they pay $565 membership fee, and the only complaint against the company has been wiped off.
  • Another company that provides clowns for parties’ C- grade becomes an A+ after they pay $395 membership fee.

William Mitchell, the ex-CEO of BBB’s LA chapter is the grand inventor of this scheme, the chapter brings in 6.2 million membership fee per year and pay the CEO over $400K in salary. The scheme is adopted nationally and it is reportedly that BBB is removing this practice (a PR stunt?).

So, for a company that is over 80 years old and highly recognized in the industry for business reviews, is selling rating for cash. What sort of world is this? In my opinion, the leaders in BBB is capitalizing on the reputation of BBB and make some cash for themselves.

BBB is a large company, as well as Angie’s list and others, are built and run on the concept of false security. I think it is a problem, and it is a difficult problem.

One way to this problem is to increase the transparency of these companies on rating, ranking, recommendations. The transparency should be at least at a level of FICO Score, which is highly transparent to users and third parties to verify. I wish I will have time to write a separate post on this solely.

Another way to the problem is to include professional reviewer in the process, instead of relying on layman like myself or my aunt Mary to rate a business. I have some ideas about it, and I also wish to write future posts on this point as well.

About these ads

16 Responses to Business Review & Rating firm BBB CEO Resigns after “Pay for Play” scheme revealed

  1. Your site is really interesting to me and your subject matter is very relevant. I was browsing around and came across something you might find interesting. I was guilty of 3 of them with my sites. “99% of blog owners are guilty of these 5 mistakes”. http://tinyurl.com/7dtdnz9 You will be suprised how easy they are to fix.

  2. Gary Bisha says:

    Just search google for

    Better Business Bureau – A useless Institution

    Startling truths

  3. Url.org says:

    It’s appropriate time to make a few plans for the future and it’s time to be happy.

    I have read this post and if I may I want to counsel you few
    attention-grabbing things or advice. Maybe you could write next articles relating to this article.
    I want to learn more things about it!

  4. ykyk says:

    jfiruy
    fjdjt

  5. Pretty section of content. I just stumbled upon your web site and in accession capital to assert that I acquire in
    fact enjoyed account your blog posts. Any way I will be subscribing for your feeds or even I achievement you get entry to constantly rapidly.

  6. Ulrich says:

    Thanks a bunch for sharing this with all folks you really realize what you’re talking approximately!
    Bookmarked. Please also seek advice from my site =). We will have a link alternate agreement among us

  7. I like the helpful information you provide to your articles.

    I’ll bookmark your weblog and take a look at once more here
    regularly. I am fairly certain I will learn
    lots of new stuff right here! Best of luck for the next!

  8. I always spent my half an hour to read this web site’s posts all the
    time along with a cup of coffee.

  9. Fantastic post however , I was wanting to know if you could write a litte
    more on this subject? I’d be very grateful if you could elaborate a little bit further.
    Bless you!

  10. You actually make it seem so easy together with your presentation however I
    in finding this matter to be actually something that I believe I
    might by no means understand. It seems too complicated and extremely
    large for me. I am taking a look forward to your next post,
    I will try to get the hang of it!

  11. Its like you read my mind! You appear to know
    so much about this, like you wrote the book in it or something.
    I think that you could do with some pics to drive the message
    home a bit, but instead of that, this is wonderful blog.

    A fantastic read. I’ll definitely be back.

  12. What’s up, every time i used to check website posts here early in the daylight,
    as i like to learn more and more.

  13. Veda says:

    It’s actually very complex in this active life too listen news on Television, so I simply use web for that purpose,
    and obtain the hottest news.

  14. seo says:

    You can use discussion groups and forums to convince visitors to stay logged in to
    your site for a longer time. Many companies also offer
    to train people under their SEO reseller programs to help them get more companies looking
    for SEO assistance and earn a better commission at the same
    time but before you join any program make sure to join an SEO firm that is going to compensate you well for the business you will be bringing for the firm.
    * Specific text message – Promoting Graphical design.

  15. Hello there!I could have sworn I’ve been to this blg before butt after
    reading through some of the post I realized it’s new
    to me. Anyhow, I’m definitely delkighted I found it andd I’ll be book-marking and checking back frequently!

  16. Barr never ceases to amaze his dayz download audience with out these two games.
    This simply means that the Spore DRM policy. Another fantastic choice that is populated by a penny to
    get rid of boredom and merely give full attention to multiple enemies.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: