Need a trustworthy auto repair shop? Stuck with unfinished roof work after shelling out thousands? Can't decide which nonprofit should receive your donation?
In the past, many consumers followed the age-old advice: Check with the Better Business Bureau.
Nowadays, with an explosion of consumer advocacy groups around the country and on the World Wide Web, many buyers are turning elsewhere for consumer news, advice, complaint mediation and plain old rants. Ranging from free, Internet-based ConsumerAffairs.com to the fee-based service AngiesList.com, consumers have their pick of groups that are designed to help them steer clear of bad businesses.
What's a stodgy, 94-year-old organization to do about all the competition?
Fight back, of course. In recent years, many BBBs have taken on a more advanced and aggressive attitude to prove that the organization is more important than ever in this age of consumption. Whether it's fighting the persistent perception that the group is too pro-business or making complaint-filing, dispute resolution and company research available online, the BBB has taken a number of steps to polish its reputation and reach out to younger consumers.
Considering that in 2005 the BBB responded to nearly 90 million queries and helped consumers and businesses in 1.1 million marketplace disputes, marketing expert Dennis Garrett says the BBB is not quite as irrelevant as some would believe.
"I think people have to recognize what the BBB was originally designed to do," says Garrett, an associate professor of marketing at Marquette University who has studied the organization and now serves on the board of the Wisconsin BBB. "It's not a consumer advocacy group. It's not pro-business. It has no enforcement power. What it can do, however, is help consumers weed out bad businesses.
"The Achilles' heel of the system is that a company can respond to the many complaints filed against it and not resolve anything, but still keep a satisfactory rating," Garrett says. "That's a hole in the system that I think the BBB will have to address. Many local bureaus have adopted a stronger, more progressive attitude by issuing more detailed reports on companies and issuing more media alerts on bad companies. They recognize that they are facing a real challenge to remain relevant."
Here, that challenge goes to Angie Barnett,
president and chief executive of the Better Business Bureau of Greater Maryland. Since taking over the organization a year ago, Barnett says, she's been on a mission to remind consumers and businesses that after years of business scandals ranging from Enron to Martha, there's never been more of a need for the BBB.
Barnett, a former vice president of membership for the Maryland Chamber of Commerce, sat down recently to answer questions about the relevance of the BBB today.
Do you have a new agenda for the BBB or issues you're interested in pursuing publicly?
A growing percentage of consumers and businesses now turn to our Web site for pre-purchase information and dispute resolution. It is our most economical and efficient means for communication - so we are investing in our IT future.
With regards to the BBB's involvement with the legislative session, I must be clear that we are not a political or lobbying organization and we deliberately do not place ourselves in situations or activities that can be construed as such.
Some people question the relevance of the BBB, especially when there are so many thriving Web sites out there focused on consumer issues and complaints. Is that a perception you're constantly battling?
Some people are surprised that the BBB is still around. But the fact is, we are more vibrant and in-touch than ever.
A 2004 Princeton study indicated that the BBB experiences an 85 percent name recognition, and 51 percent of the respondents recognized the BBB logo unaided. People know who we are. In addition, 77 percent of businesses stated marketplace ethics was more important than ever before. Businesses need and value the work of the BBB. Our job now is to refresh our image and to clearly demonstrate our relevance to today's consumer and ever-changing entrepreneur.
What do you think is the biggest misrepresentation of the BBB?
The biggest misrepresentation of the BBB is that we are the "complaint people." While we are very proud that in 2006, we handled slightly more than 10,000 dispute resolutions between consumers and businesses, we are most proud that over a half of a million inquiries were made through the BBB about Maryland companies. Consumers are choosing the BBB to make informed decisions and to avoid costly mistakes.
Another big misconception about the BBB is that we are government-funded. We are a private nonprofit, 501(c)6. We do not receive any financial support from local, state or federal governments.
How big is your staff and what do they spend a majority of their time doing every day?
Our 20-member team of professional staff shares the BBB belief system and is committed to helping people. We serve over 3,200 businesses annually through our membership program.
I would say we dedicate most of our resources, staff time and budget expenses toward all areas of service related to trade practices, which include the resolution of disputes, investigations and public relations activities to notify the public when scams and fraud are occurring.
If all your funding comes from membership dues, how does a consumer know that you won't be biased in favor of the member business? Isn't that like the fox guarding the hen house?
Our members support us because they know we will act as a neutral third party, giving them the opportunity to learn about and respond to customer problems. It's important for consumers to understand that what sets a member apart from a nonmember is the fact that by the execution and acceptance of their membership application, they have agreed to promptly respond to and resolve any consumer disputes. Our private, nonprofit status gives us the right to revoke any membership in which the business member did not answer or resolve a complaint -- and we exercise that right whenever required.
Does that mean you're on the side of the consumer?
As we discuss reviving and refreshing the BBB image, one misconception we want to eliminate is the perception that the BBB is a consumer advocate or consumer watchdog organization. Again, the BBB is neutral, seeking a mutually satisfactory outcome in disputes between business and customers, and remember, businesses and customers both have rights and responsibilities in the marketplace.
Are there any requirements to being a member?
Any business can apply for membership, not all are accepted. Believe it or not, we really do terminate business memberships, and during my tenure these past months we have done so each and every month.
Members who want to publicly promote affiliation with the BBB in hard-copy advertisements must not only agree to our standards, but they must also agree to a pre-commitment to mediation and arbitration as an additional form of consumer dispute resolution.
If a business wants to use the BBB's national seal of reliability on their Web site, they must meet an increased level of standard of business ethics, which include site security and the provision of a privacy policy. This builds further consumer confidence when choosing to do business with that business.
What happens if a complaint is filed against a nonmember company?
Any Maryland business is encouraged and permitted to provide information about their business, regardless of their membership status. When Joe Citizen is searching our database for, say, a roofer, they will get a listing of roofers who are members of the BBB as well as those who are not.
In addition, the BBB handles consumer disputes for any business in Maryland or across the country whether they are a member of our organization or not. If a complaint is filed against a non-member, we follow the same protocols as those for a member by expecting the company to respond to the complaint and doing so in a timely manner. And, just as with a BBB member, if that company does not satisfactorily resolve the complaint or does not respond to the complaint at all, that company will receive an unsatisfactory rating.
So if several complaints are filed against a company and the company always responds to the complaints without actually resolving them, does that mean the company gets a satisfactory rating? What do you do about problem companies?
Always responding to the BBB and the consumer's dispute claim does not guarantee that a company remains in good standing with their membership or in the case of a nonmember, retains a satisfactory rating with the BBB. We have examples of a few businesses that send us a form letter response to complaints - so they answer the complaint - but the complaints don't necessarily get resolved.
When the BBB notes that a company has a high volume of complaints or a pattern of complaints, we have a couple of courses of action that we employ. ... Investigations can be triggered by anything from increased complaint activity and consumer inquiries, to suspicious advertising or a company demanding immediate BBB membership!
The BBB works closely with enforcement agencies to ensure they are aware of our information. In some cases, these enforcement agencies such as the Federal Trade Commission, the Federal Bureau of Investigation or the attorney general's office will take action against the business, and they may use our information as part of their case to close them down or alter their trade practices.
When a company has no complaints on file, it simply means that a consumer has not sent in a complaint to the BBB. It certainly is not pure evidence that the company is reputable or ethical.
Does it cost any money to file a complaint or have a problem mediated?
Company reliability reports and the ability to file and have a dispute professionally resolved are offered at no cost to the consumer and the business.
Can consumers read about the details of a complaint?
Consumers do not have access to the details of complaints, but each company report reflects the number of complaints the BBB has processed in the last 36 months and how many complaints have been closed in the last 12 months.
Complaints are broken down in 11 categories based on the complaint issue, such as advertising, sales practice, delivery, repair, service, customer service, guaranty or warranty, product, refund and exchange, billing or collection and contract issues.
The company report will show the number of complaints for each category, and consumers should pay close attention to how they were handled by the company when making pre-purchase decisions.
We are constantly reminding consumers and businesses that a complaint on a company is not always a negative reflection of that business or its practices. Consumers should always look at the company's history and note that what is most valuable to them is the information on how that company responded to the complaint. If the volume is normal and their responses timely and reasonable, then that should be taken into consideration, and, speaking like Martha, it is a good thing.
The BBB is often compared to Angie's List, an online, members-only consumer ratings system of local service providers. What's the difference between the two?
One attribute of the BBB that we must convey to your readers is the BBB is founded on serving as an evaluator and adviser based on objectivity and truth. When evaluating other resources for consumer's experience, reader's are encouraged to remember Angie's List and other similar Internet consumer services provide subjective information on businesses and the customer experience; it is simply one side of the story.
The basic policy of the BBB is to refrain from recommending or endorsing any company, product or service. This is done to ensure continued public trust in our fairness. Angie's List is a word-of-mouth network for consumers. It's a growing collection of homeowners' real-life experiences with local service companies and thus it is very subjective information.
Let's say you need to make an investment in your home with a purchase of new windows. You could talk to your neighbor, call someone from the phone book, or check with the BBB. Here's the difference. Though a referral is a good place to start, what worked for your neighbor might not be the best solution for you. By going to www.bbbmd.org, you can check over 40,000 company reports by category or name and look for the BBB logo to be sure you are choosing a company that you can trust.
dan.thanh.dang@baltsun.com