In the wake of an ABC News investigation of the Better Business Bureau‘s controversial grading system, the national president of the BBB has apologized to consumers and business owners for “errors,” and BBB leaders met Tuesday in a special session to discuss reforms to the system.
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Watch: Why Did Wolfgang Puck Get an F?
Famed chef blasts the rating system of the Better Business Bureau
http://abcnews.go.com/Blotter/video/wolfgang-puck-12132380
Watch: Does Better Business Bureau Sell Its Grades?
Does Better Business Bureau sells its Grades?
The consumer watch dog is accused of taking money to dole out better grade
http://abcnews.go.com/WNT/video/better-business-bureau-sell-grades-bribe-corrupt-brian-ross-12136209
Watch: Do BBB Members Get Better Ratings?
Do BBB members get better rating?
Brian Ross on allegation that Better Business Bureau ups grades for members
http://abcnews.go.com/GMA/video/bbb-members-ratings-12129596
As detailed in a 20/20 report that aired Friday (11/11/2010), the BBB is being accused by some in the business community as well as the Connecticut Attorney General of running a scheme in which A plus ratings are only awarded to those who pay membership fees, and low grades given to those who don’t.
Alison Southwick, media relations manager for the BBB, said that as a result of today’s meeting, the organization is “considering a critical course of action which requires further work and research before we announce our concrete next steps.” In an announcement on its web site, the BBB had said that the group’s Executive Committee was gathering today to discuss “ways to improve the BBB’s rating system.”
CLICK HERE to read about the Ross Unit’s investigation of the Better Business Bureau, and CLICK HERE to watch the 20/20 report
“As has been pointed out in the media, we have made some errors, said Steve Cox, president and CEO of the Council of Better Business Bureaus. Cox said the BBB leadership is “taking a hard look at our ratings system to ensure that the information we provide is meaningful to consumers.”
“It has been pointed out that some of our practices have not measured up to the standards consumers and business owners expect from the BBB, and for that we apologize,” said Cox. “We can and will do better.” The ABC News report showed how a group of Los Angeles business owners paid $425 to the Better Business Bureau and were able to obtain an A minus grade for a non-existent company called Hamas, named after the Middle East terror group. In another case, the BBB also awarded an A minus rating to a non-existent sushi restaurant in Santa Ana, California and an A plus to a white supremacist website called Stormfront.
“They ran the credit card and within 12 hours they were an approved, accredited members,” said the anonymous blogger who helped set up the bogus companies.
The report also showed that businesses with low ratings were told they could improve their ratings by paying the membership fee.
existent company called Hamas, named after the Middle East terror group. In another case, the BBB also awarded an A minus rating to a non-existent sushi restaurant in Santa Ana, California and an A plus to a white supremacist website called Stormfront.