A very startling investigation questioning the credibility of the BBB was just recently aired (11/12) on ABC’s 20/20, click the following link to watch the segment: Better Business Bureau Probe. (Credit goes out to our forum member CoolGuy451 for letting us know about this!)
The investigation and report illustrates how the LA BBB allegedly gave a white supremacist group an A+ rating, a fictitious group labeled “Hamas” an A-. The Boston BBB even gave an F rating to the Ritz Carlton which happened to have only 2 complaints. An anonymous blogger first made a few of these astonishing discoveries. The report alleges that the BBB takes pay-offs to raise ratings, is “more interested in money than credibility.”
Recently, Dwight Kealoha, CEO of the Hawaii BBB responded to the report. Perhaps only a few, unfortunate that there would be any, chapters of the BBB have not been doing due diligence and were taking pay-offs like the investigation alleges.
After observing and bidding on penny auctions for nearly 2 years now, this report seems to only add to the despair we penny auction bidders feel when faced with a large number of penny auction sites that are downright ripping us off. Some even have positive BBB ratings and are accredited members. Just because the members are accredited does not mean that they have been audited, and it certainly doesn’t mean they are totally legit. Come to think of it, it’s a wonder (in my opinion) howone penny auction site in particular went from having an F rating to receiving an A- and accreditation, all while users were still posting negative feedback in our forum.
The world would be a totally different place if everyone (or just more?) people adopted the virtue of integrity.
“No man can purchase his virtue too dear, for it is the only thing whose value must ever increase with the price it has cost us. Our integrity is never worth so much as when we have parted with our all to keep it.” -Ovid
“I am for integrity, if only because life is very short and truth is hard to come by.”
“If everyone were clothed with integrity, if every heart were just, frank, kindly, the other virtues would be well-night useless, since their chief purpose is to make us bear with patience the injustice of our fellows.”-Moliere
Join our forum and post your penny auction review to help other bidders!
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Jim November 24, 2010, 2:04 am
I totally agree with you about the BBB and how they rate businesses. I am even more concerned about how the BBB doesn’t rate real businesses and lets people who do wrong get by with a fee and an A plus.
What I have not come to conclusion about yet, is where is the consumer responsibility and the FTC in stepping in protecting businesses. Why is it that its so easy for a consumer to place a complaint about a business and yet they can charge-back and buy and do what they please to businesses and especially an online business.
I am not sure Amanda that allowing people to post complaints and directing them to complain to Government agencies is always the best thing, We need to be diligent in how we respect and conduct ourselves in commerce.
Every day more and more businesses are being regulated and in fact Penny Auctions is on the list, It is currently in talks in legislation to be regulated and voted on to which class it will be in. I know this because I am an owner of credit card processing and I have processed for many companies in this space, some are good and some are bad, but the real concern is what is next. Most processors have put a freeze on new accounts, and in fact it will be almost impossible to process for most in the near future Jan 15th.
Is free speech like this site going to last? Is the ability to have free commerce going to be able to expand, or are we going to eventually kill all free commerce due to a complaints from consumers who don’t actually read and have the common sense of buyer beware.
I have bought bidpacks from many sites and tried most of them and some I hate and some I love and in fact have contacted them to handle there processing. But at the end of the day we need to remember that, We can not destroy a whole industry like penny auctions from one or two bad eggs.
I have even bought and maybe even process 🙂 for some you advertise for on this site, and they all have complaints one way or another, however that’s the nature of online business, even Netflix, and FRS ENERGY with Lance Armstrong has complaints.
We need to govern internally and I think what your doing is great as a resource to consumers and bidders, but should limit the complaints and links and push to see if the businesses handle the complaints and see if they will be consumer friendly. The BBB is not the right answer, its businesses joining together and consumers and sites like yours helping those understanding what they buy.
Remember we are “for the people and by the people” And free commerce must exist.
I have read many recent articles or posts on this site, and i can say I have done my research, and with my company processing for over 20K businesses this is one industry we love, cause we believe in it. and In fact we believe that it can exist, but the more complaints on one company , or 2 or 3, it will be another industry that is terminated and gone, and we all lose, and free commerce is gone again.
Thanks Amanda,
Amanda November 24, 2010, 2:46 am
I’m sorry, I’m very much for free enterprise but not when con artists are getting away with ripping people off, something has to be done about it, at least some kind of oversight and perhaps licensing.
I see many sites not following the laws in regards to truth in advertising and tend to question whether or not many of the sites are just shill bidding to make a quick buck, many have been allegedly found to. Some are defrauding consumers by not even shipping won items. Something has to be done.That’s why I started this site, to inform consumers and allow them to share reviews/ ideas, and direct them to government agencies so that something can be done. Until someone finally steps in and gets rid of the shady operators that ARE stealing from us.
How can I limit complaints, this would be censorship and important for others to know what’s really going on. I find it absurd that you would want me to. If I I were to do that I’d be condoning these practices and no better than the very businesses that are ripping us off.
Also, if any of my advertisers are not legit I urge anyone to send me proof and I will discontinue their ads.
In regards to free speech and sites like mine destroying free enterprise, I disagree. It’s the unscrupulous who think they can get away with bad business practices and not destroy the penny auction industry, because they, not me, are destroying it. And unfortunately, there’s far more than 1 or 2 bad eggs.
Jim November 24, 2010, 3:15 am
Amanda,
I mean no disrespect at all, I merely am pointing out that instead of allowing the true businesses to work with the consumers we are allowing all bad eggs destroy all good. We need to push to have consumers work with business to seek resolve and if not then to resort to the actions of regulation agencies.
Also I don’t think that limiting free peach is condoning, or even something we should ever limit, I am a constitutionalists.
Its merely allowing and stating if the merchant does not give you a refund or take care of you or resolve the discrepancy then here is the link to pursue. Encourage consumers to work with businesses, that’s what the BBB was originally formed for, and it lost its way.
This in itself, would show who is good an who is bad. Without taking down a whole industry. its sites like yours who have the power to shape, and steer business and consumers to arbitrage, to allow communication and to clean and clear the air as to what and who is to be trusted, but to allow fair commerce, and judgment without taking sides, especially as an open forum or review .
Best,
Jimmy