BBB a lie?

Better Business Bureau
315 N. La Cadena Drive
Colton CA 92324-2915

The Orange County Register found there were several business owners who alleged that the Southern California Bureau's telemarketers promised they could clean up their company record if they paid fees ranging from $300 to $600. The Southland bureau has a permanent telemarketing department, which accounts for about 77 percent of the bureau's $4.9 million annual revenue. The 40 telemarketers, who are paid solely on commission, make thousands of calls to businesses every week.

William G. Mitchell, the president of the Southland bureau, acknowledged problems with his telemarketing staff and said he has moved to correct them. He also expressed frustration with the quality of the bureau's reports on individual companies. "Our information is not always right," said Mitchell, who earns $245,000 a year.

For more than 75 years, U.S. consumers have relied on the bureau's torch logo and its pledge to encourage integrity in the marketplace. Some consumers mistakenly believe the bureau is a public agency, when it is not. In fact, each local bureau is a franchise of the national organization. They are all funded, almost exclusively, by businesses on its membership roster. Consumer advocates say the membership dues create a conflict of interest for the bureau.

More than a dozen consumers who contacted the Register described unsatisfactory experiences with the BBB.

The Register also surveyed 180 business owners about the bureau. Of the 97 that responded, 89 reported negative experiences. More than a dozen business owners said telemarketers used harassing tones.

Robert Scott, president of Omenicus, said the bureau's report contains numerous errors and has damaged his business.

Jim Troeller, a Fullerton businessman, states, "I see so many references to the BBB as if it's some sort of watchdog, but it's not," Troeller said. "It's just a paper-shuffling organization."

More serious are the allegations from some businesses who said bureau employees offered to clean up negative reports for a fee.

Dan Golka of United Home Improvements said a bureau telemarketer told him he could make a complaint go away. "It was a shakedown," said Golka.

Allan Lobel, of A-L Financial, had a similar encounter with the bureau.

Mitchell has been rewarded by receiving an annual income of $245,000. That is more than what the head of the national Council of Better Business Bureaus earns.
Mitchell not only makes almost one-third more than his national counterpart, he is paid almost three times more than the average chief executive of comparably sized nonprofit groups, according to a study by Abbott Langer & Associates.

Mitchell ran the Inland Empire bureau until it ran into trouble and he had to fold it. A year later, Mitchell merged his bureau with the Los Angeles / Orange County one. (With Mitchell having run a 'failed' BBB franchise, how is the BBB report on that and on Mitchell himself? I would bet that the BBB is 'silent' on Mitchell's failures.)