Should you really avoid the American Red Cross, Sears, and Walmart?

You would if you took the advice of the Online Business Bureau. It presents itself as a “better alternative” to the Better Business Bureau for “consumers to investigate whether a business is legitimate.” 

Like the BBB, the Online Business Bureau charges businesses and not-for-profits for membership, including the right to use its logo, in this case the OBB Trusted Site seal. But unlike with the BBB, members get an automatic “Green” rating in OBB’s online reports. (They just need to respond to any complaints.) What do non-members, such as the American Red Cross, get? Try a yellow “Warning!” symbol accompanied by the statement: “We recommend only doing business with merchants who are members of the OBB. Proceed with caution as we have no further information about this merchant.” 

The OBB is a project of Rick Rahim, whose colorful background includes a 1996 consent order (basically a voluntary agreement) with the Federal Trade Commission requiring him to stop his alleged misrepresentation of credit-repair products. You can read more about him on Consumer Reports Web Watch. The real BBB gives the OBB a rating of “F” for, ironically, failing to respond to a complaint, among other things.

Our advice? Ditch the OBB and stick with the BBB.—Tony Giorgianni