The Better Business Bureau has launched a World Wide Web site that promises to help consumers sort out whom they can trust in the expanding world of Internet businesses. But some question whether the BBB itself deserves to be trusted.
BBBOnLine, from offices in Arlington, has sold the use of its seal to the first 25 businesses to sign on with the service, which began April 30 and hopes to become an important resource to the growing number of Internet users.
"There's a real need to help consumers discern which are reliable on-line companies," said Russ Bodoff, a spokesman for BBBOnLine. "In the electronic marketplace, consumers can't talk to salespeople, can't do a merchandise check."
The BBB is trying to entice businesses to pay up to $8,000 each to be listed on BBBOnLine, banking on the BBB's pro-consumer reputation. But some consumer groups dispute the nationwide network of bureaus' claim that they regulate business ethics and protect consumers. Critics question whether the BBB works for consumers, businesses or neither.
"There's no evidence BBBs help consumers, despite the BBB's emblem having a certain good-housekeeping approval cachet that goes along with being a BBB member," said Edmund Meirzwinski, a consumer program director at the U.S. Public Interest Research Group.
A 1995 Money magazine probe concluded that most BBB reports on businesses have minimal value because the organizations collect information only on businesses that pay to join. Only about 26 percent of businesses do so, Money found.
Even when the BBB had information on a company, Money characterized the value of information, in most cases, as vague or dubious.
In one case the Michigan Attorney General's Office had received 19 complaints over two years about a BBB-approved business.
Also, the BBBs' service charges for telephone inquiries on 900 numbers the past few years have generated consumer complaints, Money found.
Stephanie Jensen, a BBBOnLine spokeswoman, acknowledged that individual bureaus have drawn complaints about legitimate problems. But she said those problems arose at a limited number of bureaus and were resolved.
The BBBOnLine emblem means a business has agreed to adhere to BBB ethical standards, has a satisfactory record in handling complaints and agrees to respond promptly to all consumer complaints.
BBBOnLine members also must agree to participate in the BBB binding-arbitration program when consumer complaints arise and comply when the BBB asks them to correct or withdraw on-line advertising.
A business on BBBOnLine's Web site discloses the owner's name, the business address and phone number, the number of employees, and the length of time the business has operated. The cost to get a business signed up with the service is determined by the size of the business, either the number of employees or revenues.
Although none of the businesses that have signed on with the service is from this region, the Baltimore Better Business Bureau is accepting BBBOnLine applications from businesses, and the District's BBB expects to solicit on-line businesses by mid-June.
David Biondi, the president of Broadcast Net of Houston, decided to become one of the first to sign up with BBBOnLine.
"Getting a BBBOnLine license is worth the $600 and change," Mr. Biondi said. He expects the Web site to spur his equipment and service sales to the broadcast industry.
"Consumers just click on a button when they call the Web site up on their screens, and there's all the information they need to know that the business is legitimate," Mr. Biondi said.
The BBBOnLine program, sponsored by AT&T, Hewlett-Packard and nine other major U.S. companies, along with three BBBs, charges $225 to $5,000 in license fees. BBBOnLine companies also must pay $250 to $3,000 to join their local bureaus.
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