Uber’s Greyball Targeted by Justice Department

Uber, the popular ride-sharing app, puts users worldwide in touch with everyday drivers looking to make some money. But the City of Portland and the U.S. Justice Department say the company’s “Greyball” software might have crossed a line, singling out regulators and taking them on a different kind of ride.

Top 10 Consumer Protection Complaints in Michigan for 2016

Consumer protection covers a wide variety of state and federal complaints. Find out what the top 10 consumer protection complaints in Michigan were in 2016, and how the state stacks up to the rest of the country.

Wells Fargo Uses Arbitration to Hide Sham Settlements

Wells Fargo recently became the center of attention when it came to light the company’s employees were creating sham accounts using its customers’ personal information. But now the company is using private arbitration to bury settlements from the public eye.

Michigan Consumer Protection Means More Than Fraud

When you hire a professional, you want to know they're going to use the right methods, tools, and expertise. That's what the Michigan Consumer Protection Act is all about. A recent court decision confirms: that means more than just fraud.

Why Consumers Shouldn't Rely on the Better Business Bureau

Whether you are looking for a reliable service provider or trying to choose the best product among a field of options, you may be inclined to look to the Better Business Bureau to help you choose. A new report from CNN Money explains why that might be a bad idea.

A CNN Money investigation recently revealed more than 100 businesses facing serious legal trouble from government regulators, but still maintained at least an A- rating from the Better Business Bureau. Here's a sample of the companies that made the list:

• Recall Failures: Stove manufacturer Electrolux failed to issue recalls for ovens it knew malfunctioned causing flames to shout out of them, causing facial burns. The company paid a $750,000 fine to the Department of Justice in May 2014. BBB Rating: A+
• Discriminatory Lending: Provident Funding Associates, a mortgage broker, charged African-American and Latino borrowers higher interest rates and fees based on their race. They faced a lawsuit from the Consumer Financial Protection Bureau and the Department of Justice. The company paid $9 million in damages to borrowers. BBB Rating: A+
• Abusive Collections Practices: Drive Time harassed borrowers and their friends and families with excessive phone calls at inappropriate times, and even at work. It also sent false information to credit bureaus. The lender paid $8 million in civil penalties and provided free credit reports to affected borrowers. BBB Rating: A-

What did all these companies have in common that let them maintain their high ratings? For one, they are all paying members. In 2013, the BBB had nearly 400,000 paying members, resulting in nearly $200 million in revenue. “Accreditation” is something that companies can purchase through membership fees.

The Better Business Bureau is a non-profit company with a set of internal criteria that it uses to rate companies – both members and non-members. But even when the BBB issues “red flags” against a company, it can still maintain a high rating based on long-time membership. Companies can also receive higher ratings for addressing complaints through the BBB system than for any other factor – including not having any complaints at all.

At the same time, government lawsuits and penalties may have such a small impact that a company can maintain an A rating while paying regulators thousands of dollars in fines. Consumer protection lawsuits rank even lower: they aren't a factor at all.

The Better Business Bureau isn't a consumer protection agency. Instead it is in the business of offering paid endorsements to companies, even in the face of regulatory penalties. Don't get fooled by their ratings. Make sure you know whether any review is paid for before you put your money on the line.

Dani K. Liblang is a consumer protection attorney at The Liblang Law Firm, P.C. She represents consumers against businesses that would take advantage of them. If you have been injured by a product defect or are facing harassing debt collections, contact The Liblang Law Firm, P.C., today for a free consultation.