BBB won't remove libelous complaint

[nick71]

What is the name of your state (only U.S. law)? CA

A few weeks ago a customer filed a complaint with the Better Business Bureau (BBB). His allegations were slanderous and completely false. Basically he accused us of operating a phony business and ripping off customers. Within hours of finding out about this complaint we emailed this customer and proved in detail that his allegations were untrue. I also faxed my proof / response to BBB. To his credit, our customer admitted by email that he was entirely wrong; he apologized and the very same day sent an email to the BBB asking them to dismiss his complaint. A few days ago I find out that the BBB has placed a complaint on our profile, and while noting that the complaint was resolved with the help of the BBB, it has also published the details of this customer's false allegations. Both I and the customer have emailed again the BBB to delete the complaint but so far have received no response.

Obviously, the false allegations in this complaint could adversely affect our business. Is the BBB legally responsible for publishing allegations that even the complainant admits is entirely wrong? What legal options do we have?

Thanks in advance for your help.

 

[Proserpina]

What is the name of your state (only U.S. law)? CA

A few weeks ago a customer filed a complaint with the Better Business Bureau (BBB). His allegations were slanderous and completely false. Basically he accused us of operating a phony business and ripping off customers. Within hours of finding out about this complaint we emailed this customer and proved in detail that his allegations were untrue. I also faxed my proof / response to BBB. To his credit, our customer admitted by email that he was entirely wrong; he apologized and the very same day sent an email to the BBB asking them to dismiss his complaint. A few days ago I find out that the BBB has placed a complaint on our profile, and while noting that the complaint was resolved with the help of the BBB, it has also published the details of this customer's false allegations. Both I and the customer have emailed again the BBB to delete the complaint but so far have received no response.

Obviously, the false allegations in this complaint could adversely affect our business. Is the BBB legally responsible for publishing allegations that even the complainant admits is entirely wrong? What legal options do we have?

Thanks in advance for your help.

Are you saying that one customer's complaint to the BBB is going to adversely affect your business?

 

[swalsh411]

Your customers (and potential customers) are so incredibly stupid that they believe everything they read except the part where it says the complaint was resolved?

 

[nick71]

Are you saying that one customer's complaint to the BBB is going to adversely affect your business?

If a prospective customer reads this complaint, he won't send us work. I know I wouldn't if I read something about a business I was considering hiring.

 

[Proserpina]

If a prospective customer reads this complaint, he won't send us work.

You obviously have no evidence of that.

I know I wouldn't if I read something about a business I was considering hiring.

Seriously - if a customer reads a single complaint which has been resolved and decides not to send you business, you're not losing anything.

Most intelligent people won't take a single negative comment as proof that the whole business sucks.

You have no case here. Period.

 

[nick71]

You obviously have no evidence of that.





Seriously - if a customer reads a single complaint which has been resolved and decides not to send you business, you're not losing anything.

Most intelligent people won't take a single negative comment as proof that the whole business sucks.

You have no case here. Period.

This is not a regular complaint about service quality or timeliness or whatever. Like I said in my original post he is saying that we are running a scam -- taking customers' money and issuing phony reports.

How can the BBB publish something that's proven to be false and acknowledged by the complainant as such? That's the whole issue here.

Ok, hypothetical here: I file something maliciously false about a business -- let's say I write that a bakery sells drugs on the side. Totally false, yet the BBB publishes it and even after I admit I made it up it won't remove this slanderous comment from their web site. Aren't they liable if the bakery loses business because of my slander?

 

[cbg]

No. They're not.

They have also stated that the situation was resolved. Why do you think that prospective customers will only take away the negatives and not notice that there is no longer an issue?

 

[swalsh411]

If a prospective customer reads this complaint, he won't send us work. I know I wouldn't if I read something about a business I was considering hiring.

Oh ok. So your potential customers (and you apparently as well) are in fact so incredibly stupid that they believe everything they read on the Internet. I mean that's basically what you are saying is it not?

 

[quincy]

nick, I agree with you that even a resolved complaint can potentially cause harm to a business, especially when the complaint is of the nature you describe.

I would continue to contact the BBB with requests to remove the false allegations and I would have the customer who made the complaint continue to contact the BBB with requests to remove the false allegations.

A few weeks is not a lot of time for the BBB to handle your requests and act on them, so I would wait awhile to see if the information is deleted.

 

[nick71]

Both I and the customer sent numerous emails to the BBB. The customer feels very guilty about making the groundless allegations and is actually pleading with the BBB to have his complaint deleted. But so far nothing. I will give it a week or two but assuming they don't delete the complaint, what options do I have?

 

[quincy]

If you cannot get the complaint removed from the BBB site through requests by both you and the customer to have the complaint removed (and you might try contacting them by phone and through regular mail in addition to your emails), you have a few options you can explore. How successful any of them will be is anyone's guess.

First, a question: Is your business a (paying) member of the BBB? Has your business been accredited?

A few BBBs scattered across the country have been sued before by businesses, over both the rating system grades and the published complaints. BBBs have been investigated over the apparent higher ratings some have given to member-businesses over non-member businesses, even when the member-businesses have a whole host of problems and consumer complaints and the non-member businesses do not.

A few BBBs scattered across the country have also been sued for defamation by businesses, over both questionable ratings and over published complaints seen as defamatory, which has led to damaged reputations of the businesses reviewed.

Generally, under defamation law, anyone who repeats a libelous statement is as guilty of defamation as the originator of the libelous statement. That has generally been the basis upon which the defamation suits have been filed against the BBBs. However, these defamation suits have failed for a couple of reasons.

What is reported to and by the BBB is considered, in most states, to be privileged. This qualified privilege allows for a BBB to publish customer complaints that may, in fact, be false and defamatory, while escaping all liability themselves. Unless the BBB publication can be shown to have been made with actual malice - a malicious intent to cause harm to the business - the BBB will not be held liable for publishing a defamatory complaint.

This qualified privilege also helps protect the BBBs from other civil action claims, such as tortious interference with a prospective business advantage and interference with contractual relations. Actual malice must be demonstrated to defeat this privilege.

In addition to the qualified privilege provided the BBBs that make an accurate and disinterested report of a potentially libelous complaint or that publish the potentially libelous complaint, the Communications Decency Act, Section 230, also provides protection, an immunity from suit, to websites who publish third party content (content created by someone else). It is the third party, the creator of the defamatory content, that is held solely responsible for the defamation.

The bottom line is: It is hard to sue the BBB and win.

An option other than a lawsuit, then, should the BBB not respond to your request for removal, is to have a lawyer draft a strongly worded letter to the BBB, advising them that the false complaint is harming, or could harm, your business reputation and that legal action may be considered if the complaint is not removed.

An option instead of, or in addition to, the other options is to file complaints with both your state's Consumer Protection Agency and your Attorney General, informing them that the BBB has posted a false and defamatory complaint, it is affecting your business reputation, and attempts by both you and your customer to have the false complaint removed have been unsuccessful.

Again, how successful these options will be if tried is a question mark. I hope that the BBB will simply honor your request for removal of the complaint instead, so you do not have to take the time to find out.

Good luck.

 

[tranquility]

In CA, the BBB is a private business which makes a profit from "accreditation". While in some states I see an immunity claimed, I don't see any cases in CA.

Do you have a cite regarding the BBB in California and qualified immunity?

My understanding it is usually reserved for more...official...organizations.

 

[quincy]

Damn, tranq. It seems I am always providing you with cites. Think you can find some yourself this time?

 

[tranquility]

MmmmmHmmm.

But, it remains the BBB is a private organization which gives ratings. In some states, they have been sued by the AG for giving better ratings to those who pay. They do nothing but publicity and do not start any criminal or civil proceedings or have any control under regulations.

I don't see how they qualify for an immunity.

 

[quincy]

You are not going to provide cites, are you, tranq?

In March 24, 2011, a California case against the BBB was decided in the BBB's favor. The BBB's defenses to claims of defamation, trade libel, intentional and negligent interference with economic relations and unfair competition held and the BBB was awarded all costs on appeal. See Entertainment Career Connections, Inc v Better Business Bureau of Southland, Inc.

The immunity that the BBB argued in this case was privileged opinion and the BBB used California's anti-SLAPP statute, whereby "written or oral statements made in a place open to the public or in a public forum in connection with an issue of public interest.." is protected.

I can add more later, when time allows.