Better Business Bureau; Is it worth another look

Better Business Bureau Fraudulent Sales Practicesfrom the inside while preying upon franchisees to
Have any other small businesses had a problemprove self worth in conjunction with other
with the BBB and there sales practices? We haveagencies in the media and also use extortion
for quite some time. Our franchisees, (ourtactics to make money for membership fees.
company is a mobile car wash franchiseImagine the money they have extracted from all
company) are required to join the local Chambersthe franchise systems of this country. Just
of Commerce as part of their franchise when oneimagine the number of small businesses who are
exists in their exclusive territory. But as soon asstruggling right now to make payroll as cash flow
they do the BBB calls up and says;has lessened due to economic forces beyond
"We have been getting a lot of calls about yourtheir control. Over 10% of all Americans own
service, but we did not know what to tell thosesome type of small business and can be
customers who inquired about you with Thesubjected to these terrorizing and extortion sales
BBB?" Then the pitch goes on...for about $300 plustactics. Most franchisors have many franchisees
dollars you will receive....that are members of the BBB; this costs
Our franchisees join the chamber prior to thefranchisees each year and cuts into the profits of
commencement of their business while theirthe franchised units. We have put this line of text
mobile car wash service trucks are being built toin our franchise agreement:
get to know the communities they will be serving.5.1 You may not join the Better Business Bureau
Inver ably they will get the call from the BBBas a business member as part this franchise with
from the new member directory from theus.
chamber of commerce before any advertisingI am very serious about this issue, having been
goes out, so in fact no one had ever called thelied to by BBB representatives for the last five
BBB at all. This has happened to our franchisees inyears and today when I called to see if things had
Carson City, NV; Palm Desert, CA; Agoura Hills,changed. I was hung up on by the BBB in
CA; Camarillo, CA; Sacramento, CA and Houston,Washington D.C. when I called to discuss this issue.
TX. I realize that this is "telemarketing fraud" andThe FTC will not do anything about it for fear of
I am concerned. I am told that many of the 128losing a partner. If the FTC will not look into this,
BBBs across the country pay their salespeoplewhy do we need an FTC or a BBB?
either all or part commission. So perhaps this is anI have received several emails from concerned
individual problem, yet their sales people havebusiness people, for instance, Bob writes: "That's
done this. I personally have had it happen fivereally interesting, isn't it? One government
times to me as the franchisees signed up at thebureaucracy is using whatis "supposed" to be a
Chamber of Commerce in various cities and theyfree-market entity to do the dirty work that
did not have phones yet, so they called me attheythemselves don't have the Constitutional
Corporate. As a franchisor I am responsible forbacking to do in the first place.
any verbiage of any sales person given during aThen, by not holding the BBB accountable for its
sale, shouldn't the BBB also be liable for thesefraudulent practices, it isbasically saying to them,
falsehoods?"you are a brother government agency - one of
I contacted the Washington D.C. head office ofus -,free to terrorize whomever you want". "I
the BBB and they denied that any such incidentalways thought that the BBB was basically a
has ever occurred and referred me to the factprivate organization that served as a watchdog,
that they are a 90-year old organization. Maybe,with a membership of businesses that could
but as it stands today they are breaking the law.self-police. Apparently, I was wrong."
This has occurred five times in sales calls to meThis is a nationwide problem not just a few rouge
personally from BBB representatives. I alsosales people in one part of the country or one of
contacted the Los Angeles BBB and was told thatthe BBBs 128 locations. In Atlanta Mr. Lee writes:
yes their sales people often use Chamber of"It's not just with franchises.... We get calls at our
Commerce lists of new members as well as lookcompany stores in Atlanta, NYC, Chicago, and
up names of anyone who has had a complaintBirmingham with the exact same sales pitch "blah
filed against them. I was told of this off theblah ...we've been getting a lot of calls about your
record, yet I am using this information too. Incompany from your prospects, and we don't
other words they use the list of companies whoknow what to tell them because you're not listed
had customers call in whether it was a validwith us.." "It seems like a total scam. I often feel
complaint or not as a sales tool. Interesting sincestongarmed by them. Do you mind if I share your
accounting firms cannot also be consultants theseemail with our attorney?"
days. The hypocrisy of the BBB is a littleOther people are also concerned with these
unnerving and of course unethical if not out rightissues, iCop Founder writes: "You certainly don't
fraudulent in my opinion. I was told at the L.A.need to convince me! I know first hand that
office that "MOST COMPANIES" join the BBB.everything you're reported here is true. I have
Impossible since there are over 1.6 millionpersonally received the exact same treatment
businesses throughout the greater LA, Orangefrom the BBB in California. I had to threaten to
County, Riverside, San Fernando Valley area andsue them to get them to stop calling with the
most could only be over 51%. This is anthreats and harassment. A few years ago, when
exaggeration by any stretch. This would meanI had a complaint about one of their big name
they would have a minimum of 800,001 business"sponsors" who ripped me off to the tune of
members, when in fact they have less than oneseveral hundred dollars, the only response from
tenth that number in all of Southern California. Yetthe BBB was, "They said they didn't so it." This in
these same BBB offices take complaints aboutspite of the fact that I had sent them undeniable
franchising and on many of their web sites tellproof! What is wrong with THIS picture?!"
buyers to be aware of exaggerations; ."Unfortunately, I have no idea that anything can
This is quite appalling and shows that bothever be done about it. They are protected by the
franchisors and franchisee attorneys should standgovernment - as you have already found out. I
up and take notice; but this is not just a franchisedid write a series of articles on it a couple of
business issue, it is a small business issue. All smallyears ago. Maybe it's time to rerun them!
business people are subjected to this and maybeApparently, the only thing we can do is educate
harassed. Chambers of Commerce across thispeople and warn them.
country signup their new members with publicPretty much like the Mafia making you pay for
trust, yet this is being abused by anotherprotection under threat, eh? But then when Quest
organization the BBB. I was also told today by thisis listed as one of their corporate sponsors, you
sales person in Los Angeles that 9 out of 10 callshave to know something's very wrong! Sorry we
coming into the BBB were consumers looking forcan't be more help but it's way too big a scam
references of businesses for service or products.for iCop! When a government supported
This is also an exaggeration and a falsehood (lie).company like the BBB acts like nothing more than
If you call any BBB the answering machine usuallythugs, it's hard to be surprised at situations like
states; "If you would like to make a complaintEnron and Worldcom."
press 1..." There is no mention of getting aBut that is not all the smallest of small business
reference and certainly few incoming calls result inalso have been harassed, Greg Spunk writes
new business for its business members. One ofabout this from San Diego and an office now in
the benefits you receive is instant credibility fromPhoenix: "We have not joined the BBB in either
the consumer, yet the organization issuing thethe Phoenix or San Diego locations for similar
stamp of approval lacks credibility and ethics ofreasons. You just verified what I already felt was
it's own.happening. They are of no value to us and we
Also of grave concern is the fact that even ifhave not missed them."
you join the BBB and appear in the BBB phoneIn Pittsburg a small manufacturer writes in to us
book they produce in some markets, if you areand says: "The same thing to me. "someone is
disreputable you are still in print for the remaindercalling about your business and we aren't able to
of the year. And therefore we have the BBBtell them anything since you aren't a member.... It
promoting disreputable businesses for as much aswas $465 dollars to join, and they called and called
12 months. If someone files a complaint againstand called. I declined since I didn't see the point."
your company whether real or imaginary (tryingWe received this from Albuquerque, NM from the
to get free stuff) you must settle the saidproprietor of a small automotive business who
complaint before you can renew, once againwanted her husbands company to remain
extortion.anonymous; "It happened here for 6 months,
I feel these sales techniques are fraudulent andsame speil, We have been getting calls for your
disreputable. I am also concerned with thebusiness etc. Finally I told them that I was not
"Boomerang" closing techniques when the BBBinterested and to stop calling or I would call Santa
sales person gets a negative response to join.Fe and talk to the DA. Susie"
"We will not be able to tell the people who call usI received this email from one of our own
that you are a reputable company." Implying thatfranchisees;
the consumer will assume the opposite, that you"The BBB has called us and even after telling
are disreputable company. This in itself maybethem I was too busy to make an appointment
good for BBB sales, but it is an extortion(after several calls), they dropped in when I
technique. I have heard this extortion techniquewasn't home and told Gino I had made an
myself many times and phrased many differentappointment. NOT TRUE. What's up with them, I
ways all-leading to the same tactic. Asking smalltold them we were too new to join yet, we had
companies to fork over $300 plus dollars isto watch our cash flow. What's up with them?"
unnecessary and they will receive little if anyFranchisees coming into the market and/or having
benefit for their BBB membership. Perhaps thebeen laid off need to watch every penny they
plaque displayed may be of value to customers inspend, if the BBB uses forceful tactics, then they
a store, but the way in which they attempt to sellare of detriment to the success of a new
it is dishonest.franchisee that is on a budget to get their
The BBB works closely with the FTC and afterbusinesses going. Then they show up at a
contacting the BBB to make a complaint they toldpersonal residence without an appointment? The
me I was wrong, and that I did not know what Isales people are so aggressive and hound small
was talking about and that the BBB would neverbusinesses. What happened to privacy? Is the
do such a thing? Which is also a falsehood since IBBB resorting to new tactics after the recent
have experienced it first hand. When I told themtelemarketing law became effective? The BBB
that I might have to contact the FTC in thiswas told by our franchise that they were not
matter, they said go-ahead knowing their strengthinterested after several calls, so they show up at
in alliance with the governmenttheir house? I am sorry but isn't this pushing it a
The BBB preys on small businesses of all types aslittle, general harassment? Yet no one will enforce
well as franchised businesses for membershipthese issues.
using these techniques. We called the FTC as wellIf any other Small Business Person, Chamber of
and they would not take the complaint. PerhapsCommerce, SBA office, SBDC or franchisor are
this is because they work with the BBB inhaving this problem, I would sure like to know.
secretly using entrapment techniques to getYes we are busy too, but that does not mean
franchisors to make unsubstantiated earningswe can allow this injustice to continue. This is
claims. The FTC has also worked with the BBB tounacceptable behavior and the BBB should be
catch franchisees of various systems in consumerdisgorged of these ill-gotten gains. These monies
fraud such as automobile repair, advertising claimsshould be rightfully returned to the businesses and
and telemarketing techniques. So for this reasonthe FTC should not get a dime since they are in
the FTC will not do anything about this issue.cahoots with the BBB and are allowing this to
The BBB is above the law. They often lie tocontinue for years on end. The FTC and the BBB
prospective members to make sales, meanwhileshould stop throwing stones at franchisors and
attack franchisors using entrapment techniquestheir franchisee team members.