Mar 12 2013
LATimes: Better Business Bureau expels Los Angeles chapter, largest in nation
The Better Business Bureau chapter that predominantly served the Los Angeles area is no more.
The BBB of the Southland was expelled Tuesday from the national organization, losing the right to use the BBB name and logo.
The move comes after a 2010 ABC News report which detailed the group’s practice of accrediting new members and awarding them inflated ratings in exchange for cash.
“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,” said Carrie A. Hurt, president and chief executive of the Council of Better Business Bureaus, in a statement.
The Arlington, Va.-based group then conducted its own investigation of the Los Angeles chapter, examining its alleged “pay to play” culture.
In 2010, 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 the ABC News report. Hamas received an A-minus rating.
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