BBB Giving High Ratings To Some Bad Companies
BANFIELD: You think you could trust the Better Business Bureau. Its stamp of approval is supposed to give people confidence in the quality of a business or a charity, but what if the ratings are wrong? Nearly 5 million companies throughout the United States get a grade from the better business bureau from A+ to the way down to bad one, F. But an investigation by CNN, money is giving the better business bureau its own failing grade for the high marks it is handing out to really bad companies. Here is Senior Investigative Correspondent Drew Griffin</s>DREW GRIFFIN, CNN SENIOR INVESTIGATIVE CORRESPONDENT: NourishLife, sold dietary supplements claiming they treated speech disorders of children with autism. It was one big problem according to autism advocate Julia Bascom. No proof the product worked.</s>JULIA BASCOM, AUTISM SELF ADVOCACY NETWORK: They're selling false promises. They're selling promises that haven't been supported by any kind of scientific research. They're selling a product that hasn't been tested. We don't know what it does.</s>GRIFFIN: After an investigation of federal trade commission this year filed a lawsuit claiming the companies claims deceptive. NourishLife paid a $200 thousand fine and was forced to stop making claims that its supplements help kids with autism. It was a huge blemish on the company's record, but you wouldn't be able to tell that from their rating, the Better Business Bureau rated NourishLife A+ its highest rating. Julia Bascom has one question, How?</s>BASCOM: Damage were may flood (ph), damage were exploited. Disabled people and disabled children were exploited.</s>GRIFFIN: NourishLife tells CNN it "prefers to move on" and says it's received "the Better Business Bureau complaint free award for the past six years and maintains an excellent customer service program." It turns out the Better Business Bureau rating for NourishLife isn't the only rating you maybe leery off.</s>UNIDENTIFIED FEMALE: For more than 100 years Better Business Bureau has been helping millions of consumers find businesses they can trust.</s>GRIFFIN: A CNN MONEY investigation has uncovered more than a hundred companies that had been the target of serious government regulatory action in the last year but still received A+ to the A- ratings from the BBB. And that even includes a company called Freedom Stores, it's a chain of furniture and consumer electronic stores that cater to the military and gave easy credit to service members. But according to Virginia Attorney General Mark Herring, the company ripped off gullible consumers by garnishing wages, taking double payments and even charging credit cards without permission. I mean it sounds like they're just preying on the military?</s>MARK HERRING, VIRGINIA ATTORNEY GENERAL: It is unbelievable that anyone would single out and target our military service members like this. And, you know, I am not about to let Virginia be a safe haven for companies who would target our veterans, our service members or families or really any consumer.</s>GRIFFIN: Herring sued last year forcing freedom and its affiliated companies to pay back customers $2.7 million. They also paid a fine of $100,000. But guess what? Freedom's Better Business Bureau rating remained in an A+ and its affiliated company, military credit service received an A-. They're not A rated in your book?</s>HERRING: I certainly not going to buy anything from them</s>GRIFFIN: This summer the company announced it was closing its retail stores and declined for comment for this story. The list of companies highly rated by the Better Business Bureau also includes Adventist Health System, a company accused by the justice department of recklessly cutting corners by providing potentially harmful radiation at some of its hospitals. That resulted in a $5.4 million fine. Provident funding associates force to pay $9 million dollars in damages for preying on minority borrowers. The companies wouldn't respond and the Better Business Bureau wouldn't go on camera instead they sent us this statement. "Ratings are dynamic the Better Business Bureau statement reads and the may fluctuate on a daily basis to reflect the addition of new information or removal of data that's more than three years old." As for the more than 100 companies we found that they serious government action because of the bad business practice. The BBB said government action is only one part of the determining a company's rating, and it just can't keep track of every action against all the 4.7 million companies it rates. The consumer advocate Joe Ridout, that sounds like the Better Business Bureau isn't doing an A rated job.</s>JOE RIDOUT, CONSUMER ACTION: I would not counsel anyone to trust the BBB without looking at other source of information. It can be useful when you find a low grade. But if you have a high grade if you trust that that trust is likely going to be misplaced.</s>GRIFFIN: Ashleigh, the Better Business Bureau actually beginning changing those ratings or chose to give no ratings at all, NourishLife went from an A+ to an A-. But, you know, in the end, it's really up to consumers to do their own research about a company for more on this story go to cnnmoney.com. Ashleigh.</s>BANFIELD: Drew, thank you for that phenomenal work, I appreciate it. Cnnmoney.com is the place to go for more extensive reporting from Drew and his team have a look that is critical material for consumers. Coming up next, that case against Bill Cosby, boy, it just won't go away, will it? And it is just taking a giant leap off of the tabloid pages, and right into federal court. Want to know what that means? Back right after this.