I was wondering why BBB changed
their name........
Better Business Bureau L.A. chapter changes name after
expulsion
The just-expelled Better Business Bureau of the Southland has no plans to
end its mission of fighting for southern California consumers.
The former Los
Angeles affiliate of Council of Better Business Bureaus has renamed itself the
Business Consumer Alliance and is going on the offensive after being booted
from the council Tuesday over allegations that it strong-armed businesses into
paying cash for inflated ratings.
"It is
ironic that the BBB accuses us of failing to follow organizational policy on
the one hand, and then labels us a bad apple when we do," Peng said.
"The reality is very simple: The pay-for-play policy was the BBBs, not
ours."
The rare move
by the Council of Better Business Bureaus, based in Arlington, Va., follows a
two-year investigation into the Southland chapter's alleged "pay to
play" culture.
"Over a
period of more than two years, BBB of the Southland failed to resolve concerns
about compliance with several standards required of BBBs, including standards
relating to accreditation, reporting on businesses, and handling
complaints," Carrie A. Hurt, president and chief executive of the Council
of Better Business Bureaus, said in a statement.
The saga began
unraveling in 2009 when The Times' consumer affairs columnist, David Lazarus,
wrote about chef Wolfgang Puck,
who owns several restaurants in Southern California. Puck's non-BBB restaurants
were rated poorly, while lesser-known eateries paid roughly $300 in dues and
were graded A-plus.
A year later,
a group of Los Angeles business owners that had been critical of the BBB conducted
a sting operation by paying dues for fake companies, including one named after
the Palestinian organization Hamas,
which the U.S. government considers a terrorist group.
The fake
businesses were all accredited and given ratings, according to an ABC News
report. Hamas received an A-minus rating.
Hurt said in a
statement that the national group will operate a "virtual BBB" until
a local group is established and running again. Other BBB staff from around the
country will take on local responsibilities in the interim.
In a Friday
letter to the national group, Jerry Dominguez, chairman of the board of the BBB
of the Southland, defended his chapter's record and resigned its membership in
the Council of Better Business Bureaus.
"Our
board has endured repeated, unjustified criticism that we haven't been
exercising our governance responsibilities as the auditors believe we
should," Dominguez wrote. 
In the letter,
he detailed what he called the group's accomplishments and handling of consumer
complaints.
"Frankly,
we're disgusted with the actions of Council and we find resignation to be not
just the only, but the best, course of action for us," he ended the
missive.