'Pay For Play' Scandal Engulfs Better Business Bureau

[struggle4progress]

Los Angeles chapter allegedly gave "A" rating to non-existent business that paid its dues
Truman Lewis
ConsumerAffairs.com
November 22, 2010

Bowing to pressure from Connecticut Attorney General Richard Blumenthal, the Better Business Bureau (BBB) has agreed to stop awarding rating points to businesses that pay dues to the organization.

The BBB also said it would "launch an immediate investigation" into an ABC News report that its biggest local chapter - the Los Angeles BBB - sold memberships to non-existent businesses that immediately received an "A" rating.

The ABC report of the alleged "pay for play" scheme said that "A+" ratings were only given to businesses that paid an accreditation fee, while "F" grades were routinely given to businesses that declined to join the BBB and pay dues.

The Los Angeles BBB is by far the largest of the 108 chapters in the U.S. It brought in $6.2 million in accreditation fees in 2008, the ABC News report said, and paid its president, William Mitchell, an annual salary of $409,490 ...

http://www.consumeraffairs.com/news04/2010/11/pay-for-play-scandal-engulfs-better-business-bureau.html