• For generations, Americans turned to the Better Business Bureau to find out if the local grocer was cheating customers or if the neighborhood dry cleaner was mishandling clothes.
But this week the 101-year-old consumer watchdog turned its sights on one of its own — ousting the Los Angeles chapter that grades local businesses. BBB of the Southland was expelled after years of internal strife and a slew of audits by the Council of Better Business Bureaus.
The chapter, which was the organization's largest and covered Los Angeles, San Bernardino, Orange and Riverside counties, was accused of demanding that businesses pay membership fees in exchange for good ratings. It even reportedly issued an A-minus rating for a fake business named after Hamas, considered a terrorist group by the U.S. government.
It's the latest problem facing the Arlington, Va.-based Better Business Bureau, which has struggled to stay relevant as consumers turn to Internet sites such as Yelp and Angie's List.
"They have a spotty past and this is just one more situation that's going to lead people to believe there's problems there," said Scott Hauge, president of the advocacy group Small Business Ca
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