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BUSINESS RESPONSE - SELF REGULATION (FROM CONSUMER COMPLAINTS - PUBLIC POLICY ALTERNATIVES, 1975, BY SAL DIVITA AND FRANK MCLAUGHLIN - SEE NCJ-57896)

NCJ Number
57903
Author(s)
J W MACY
Date Published
1975
Length
6 pages
Annotation
THE PRESIDENT OF THE COUNCIL OF BETTER BUSINESS BUREAUS DESCRIBES THE BUREAUS' CONSUMER REDRESS ACTIVITIES AND THE COUNCIL'S POSITION ON PUBLIC-PRIVATE PARTNERSHIP IN RESOLVING CONSUMER COMPLAINTS.
Abstract
THE 124 BETTER BUSINESS BUREAUS LOCATED IN METROPOLITAN AREAS IN 42 STATES CONSTITUTE THE MOST FREQUENTLY USED MECHANISM FOR THE REDRESS OF CONSUMER GRIEVANCES. THE BUREAUS HAVE HANDLED MILLIONS OF CONSUMER COMPLAINTS, OFFERING MEDIATION AND ARBITRATION SERVICES IN ADDITION TO THEIR BASIC COMPLAINT-HANDLING PROCEDURES. NEVERTHELESS, THERE REMAINS A NEED FOR A MORE EFFECTIVE FORUM IN WHICH CONSUMERS CAN OBTAIN PROMPT, FAIR INEXPENSIVE RESOLUTIONS OF THEIR COMPLAINTS. EXPERIMENTAL EFFORTS TO PROVIDE SUCH FORUMS ARE UNDERWAY IN BOTH THE PUBLIC AND PRIVATE SECTORS. THE COUNCIL OF BETTER BUSINESS BUREAUS BELIEVES THAT PRIVATE SECTOR MECHANISMS SHOULD BE THE FIRST LINE OF ACTION FOR CONSUMERS WITH COMPLAINTS. GOVERNMENT MUST HANDLE ALL CLEAR VIOLATIONS OF THE LAW, SUCH AS OUTRIGHT FRAUD, AND MAY HAVE TO IMPROVE OR ESTABLISH PROPER FORUMS WHERE NO EFFECTIVE PRIVATE SECTOR MECHANISM EXISTS, OR WHERE BUSINESSES REFUSE TO COOPERATE VOLUNTARILY WITH RESPONSIBLE PRIVATE SECTOR MECHANISMS. BUT IN GENERAL, GOVERNMENTAL ACTION SHOULD BE TAKEN ONLY AFTER PRIVATE SECTOR ACTION HAS FAILED. FAILURE TO INCLUDE PRIVATE SECTOR EFFORTS IN CONSUMER GRIEVANCE LEGISLATION CAN ONLY LEAD TO A WASTEFUL DUPLICATION OF EFFORT. EFFECTIVE COLLABORATION BETWEEN THE PUBLIC AND PRIVATE SECTORS CAN BE ACCOMPLISHED TO THE BENEFIT OF CONSUMERS, BUSINESSES, AND TAXPAYERS. EXAMPLES OF PRIVATE SECTOR EFFORTS TO DEAL WITH CONSUMER CONTROVERSIES, PARTICULARLY THE NATIONAL CONSUMER ARBITRATION PROGRAM OF THE BETTER BUSINESS BUREAU SYSTEM, ARE DESCRIBED IN DETAIL, TOGETHER WITH EXAMPLES OF BUSINESS COOPERATION WITH STATE AND FEDERAL GOVERNMENTS IN CONSUMER MATTERS.

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