Truth in advertising. It is an interesting concept. To me it means: tell the truth to your customers. I took some time checking out the BBB web site. This is one of the things that I learned:
The Bureau's history of resolving marketplace problems and fostering sound business practices through self-regulation, rather than government regulation, gives the BBB name instant recognition. To the public, it's a synonym for creditability. The BBB plaque and decal are an instant introduction of a member to the public, who, according to a Roper study, prefer to do business with a member over a nonmember. The result is business profit and customer satisfaction.
The BBB has a history for seeking out fraud and is known for being the source of information to combat fraudulent business practices. In fact, one watch dog group promotes the BBB alongside the New Mexico Attorney General. See below:
To report fraud or a scam in the state of New Mexico, start with the attorney general or the Better Business Bureau.
http://www.fraudguides.com/report/new-mexico.asp
My company is a paying customer of the BBB with a Double A rating. I was interviewed by a BBB employee in my office and he asked me for my licenses. He walked around my office to make sure my company was on the "up and up." You know, in order for a company to be in compliance they are required a number of licenses. City business license, state issued licenses to provide certain services, Tax ID #'s and tax certificates, New Mexico incorporation or domestication for your company, etc. This is all very elementary and standard for ethical businesses. In fact, the BBB company report even lists a section for the "Licensing" of a company. It lists the agency, license number, status and contact numbers for the agency responsible for licensing. This all protects the consumer and provides good up-to-date information. After all, the BBB stands up to protect consumers and the public from bad companies and unethical businesses- right?
The comment that I got from Mr. Jerry Shipman, President of the BBB in New Mexico just didn't sit right with me. He suggests that we need to lobby our RLD to have a better system to check licenses. I agree with this for the normal person but not for the BBB. The BBB is a membership organization that gives it the ability to screen its membership. Not just for the money that he company will contribute but for the BBB to actually screen the company to make sure that it is a good and honest firm with proper licensing. If a company wants to be a member of the BBB- why not just ask them for a copy of their licenses. State law requires that they hang them up at their place of business and the BBB does a site visit so why not just check the license at that time. My blog has a current list of licensed security companies issued by RLD. Why not look to this blog if you can't find it elsewhere. The BBB should ask that it's prospective members "tell the truth and make it a habit." Don't you think?
I checked their NM PRC incorporation and found that the business purpose of the BBB is: business association prompting ethical business. Jerry Shipman is the President and registered agent. Download BBBInc.pdf
Additionally, I was truly surprised to see that the New Mexico Better Business Bureau Inc. didn't have a city of Albuquerque Business license as required by law. Download BBBnoAbqbuslicense.pdf See the relevant city ordanance below:
All persons proposing to engage in business within the municipal limits of the City of Albuquerque shall apply for and pay a non-refundable $35 business registration fee for each outlet, branch, or location within the municipal limits of the City of Albuquerque, prior to engaging in business. Register your business before you begin operation to avoid a $10 late payment penalty. The City obtains information concerning new businesses from several sources to verify that all City businesses do in fact register with the City's Treasury Division. The City must be notified of any changed information on business location and/or status. The change must be approved by the City's Zoning Department.
I have learned to never give absolute trust to anyone or any organization. It is imperative for consumers to check out the companies that they do business with and don't place too much credit or trust into any symbol.
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