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Monday, May 10, 2010 | 8:53 a.m.
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A company unhappy with its Better Business Bureau rating is suing the BBB of Southern Nevada, charging BBB ratings are easily manipulated and are biased in favor of companies paying BBB accreditation fees.
Incorp Services Inc. of Henderson filed suit in federal court in Las Vegas last week against the Better Business Bureau of Southern Nevada and its director, Sylvia Campbell.
Incorp says it's the largest Nevada-based registered agent service with more than 75,000 active clients around the world and "enjoys a sterling reputation in the registered agent industry for the quality of its services and its responsiveness to customer concerns." Such registered agents typically provide incorporation services and handle other paperwork provided by the state.
"Defendants advertise themselves as an unbiased public-interest organization, designed to provide customers with honest and accurate information about businesses," the lawsuit charges. "Defendants' advertisements are false, as their ratings of businesses are intentionally biased and inconsistent, and in particular, heavily favor businesses that have chosen to pay money to and participate in the defendants' accreditation program."
Incorp complained that as a result of its decision not pay BBB accreditation fees, the BBB has assigned it an inconsistent rating that often appears as an "F" on the BBB website.
"Defendants have systematically disregarded Incorp's attempts to understand the complaints that have been filed against Incorp with defendants, to respond to consumer complaints, to communicate with defendants and to repair Incorp's rating published by the defendants," the lawsuit charges.
The BBB website on Monday showed Incorp has a "C+" rating, and says the BBB has processed 26 complaints against the company in the past 36 months. Of those, 14 were resolved and 12 were closed after the BBB determined Incorp made good faith offers and efforts to resolve the complaints.
Incorp charged in the suit that its rating has vacillated on a daily basis from "F" to "C" to "No Rating" without explanation and that the BBB system can easily be manipulated by a third party in a matter of seconds.
By making minor alterations to the BBB website address, "third parties can create a web page, under defendants' domain name, that reflects any grade they want for any business listed in the BBBOnLine system," the suit charges.
Unscrupulous third parties can then spread false domain names throughout the Internet, "creating the impression to millions of Internet users that defendants have assigned Incorp (or another business) a different letter grade than it has actually assigned," the suit charges.
Incorp accuses the BBB of false advertising and business disparagement and seeks damages for these claims as well as "oppression, fraud and malice."
Campbell declined comment on the suit except to say that companies paying for BBB accreditation do not receive preferential treatment in their ratings.
"We do have a lot of companies that are not members that have good ratings," she said.
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I was going to file a BB complaint against Fry's Electronics for bait and switch. Too lazy to do it.
logic, it's extremely easy to file a complaint. Go to http://southernnevada.bbb.org/complaintf....
Incorp will win and BBB will get what is coming to them. They are frauds, join or beware. I have witnessed this behavior first hand. There are others waiting to see how this goes, BBB will have to answer for their behavior...more lawsuits
The BBB is nothing but a new twist on the "pay us or we'll throw a brick through your store window" extortion scheme of days past. You pay, and you get an "A" (or similar) rating, and if you don't pay, you get an "F"
The "real" story of what the BBB is and does can be read at: http://www.bbbroundup.com/
I used to think the BBB was part of the government, but it isn't! It is a private telemarketing firm. The bigger problem is that companies that do and have ripped off consumers and SHOULD have an "F" rating instead have an "A" rating solely because they have paid the BBB "protection" dues.
Most unusual is that even the Better Business Bureau is NOT itself a member of the BBB. Not only does this exhibit a lack of confidence in their own product, it makes it impossible for anyone to complain about the Better Business Bureau to the organization. If you complain to or about them, they do not respond (and they won't)
Apparently Incorp isn't the only victim http://www.ripoffreport.com/BBB-Better-B...
And a google search of "BBB shakedown" turns up hundreds of articles like this one http://archive.columbiatribune.com/2009/... where a guy states, "Roger Fries has been an independent real-estate appraiser more than 30 years. He said he has always had a good impression of the BBB, but he was shocked in September when a BBB representative called him at home and seemed to offer a "veiled threat" to put him "on their sh- list" if he didn't pay the accreditation fee."
All I can say is good luck Incorp. I'm surprised this isn't a class action.
BBB protects their own. I filed a claim a few years ago about illegal practices by local franchisee of rental car company, my case backed by national company. BBB disregarded my claim and sided with sleezy rental car company. This, too, is a corrupt organization. What else would you expect in Nevada?
The BBB continues to mislead the public with its questionable rating system and public relations hype.
This time, the BBB for Southern Nevada gives a failing Sun West Bank in Las Vegas a higher grade (A) than a vibrant, extremely successful entity such as Incorp (C).
No wonder Incorp is suing the BBB for false advertising and business disparagement.
The FDIC shut down Sun West Bank on Friday, May 28, 2010. It is at least the 17th failing bank given a passing grade by the BBB since 12/31/09.
As doubts mount about the BBB's reliability, an increasingly aware public calls for an independent investigation and full disclosure of secret BBB practices.
Others, like Incorp, demand compensation for damages resulting from the BBB's lack of transparency and accountability to the public.
I sincerely wish Incorp all the very best wishes in their case against the BBB. They need to be shown that they can no longer get away with bullying people who choose not to join their scam ratings lists.
I hope Incorp starts the ball rolling to expose the fraudulent BBB. They're a wolf in sheep's clothing as well as a fox guarding the hen house for both consumers and businesses. If a business can fork out 4-500 dollars annually, they are guarantied protection and falsification. I was on the consumer end of the BBB's fraudulent schemes. Their A+ Rated business cost me thousands of dollars of damage. I chose their "impartial and unbiased" arbitration instead of small claims. It was an "open & shut" case with dozens of before and after pictures along with a 20 min video. He (the business) had nothing but a sob story. I lost without ANY compensation. How do I sue this MAFIA-Style organization with no money?
Incorp, my hat's off to you. BBB of Southeast Florida is no better than the BBB you have the displeasure of dealing with. They are extortionists and defame businesses that don't pay up. I was solicited with 3 levels of membership, at $1,000.00 $2,500.00 and $6,000.00. When I showed no interest, my companies rating went from A to F. Blaming algorithms. It's just garbage and I wish there was a government agency set up to protect small businesses like mine from getting defamed by BBB's that prey on business owners.