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ARTICLE · 26 MARCH 2013

Better Business Bureau Shuts Down Southern California Chapter

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The Better Business Bureau has announced that it has expelled its Southern California chapter following years of allegations that the local unit fostered a "pay for play" environment, requiring businesses to pay membership fees in order to obtain the highest ratings under the organization's "A to F" rating system.

United StatesConsumer Protection
Loeb & Loeb LLP'S Consumer Protection Defense Department
Loeb & Loeb LLP'S Consumer Protection Defense Department

The Better Business Bureau has announced that it has expelled its Southern California chapter following years of allegations that the local unit fostered a "pay for play" environment, requiring businesses to pay membership fees in order to obtain the highest ratings under the organization's "A to F" rating system.

The local chapter has caused significant frustration for numerous Southern California businesses and industries as a result of questionable practices that have come to light over the years.

Allegations that the Southern California BBB used misleading methods to solicit memberships and promised that consumer complaints could be "erased" if merchants purchased BBB memberships date as far back as May 2002, when the Orange County Register ran a series of reports on the chapter. The Orange County District Attorney and California's Attorney General reportedly investigated the complaints.

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