How Do I Check Out a Company?

How do I check out a company that I am considering doing business with? Can I find out if the Attorney General's Office has received consumer complaints against a particular company?

The California Attorney General solicits and maintains consumer complaints from the public regarding companies doing business in our state. These are used to assist our Consumer Law Section in determining patterns of deceptive or unfair business activity which require formal investigation or legal action. The complaints we receive are unsubstantiated and are considered to be law enforcement investigative material. For this reason, it is our policy not to release information from our files except to law enforcement agencies. Further, we feel that it would be unfair to legitimate businesses to comment on the existence of complaints which have not been proven, and which may provide a misleading impression to consumers.

Because the information which we are able to provide is limited, we recommend that if you have any doubts about a company's business practices, you should investigate the company thoroughly. Here are some of the things you might research before entering into any business dealings.

Ask for a list of references. The list should include companies from whom they purchase their materials, as well as distributors or customers to which the company sells. Ask for a business statement. A business statement should describe the daily practices of the company. It should also provide general information on the company, such as the number of years in business, all of their locations, the owners of the company and a description of the organizational structure of the business. Ask the company what licenses they had to obtain and who to contact to verify their licenses. Also, ask what precautions the company has taken to verify that all of their actions are legal within the State of California.

For those thinking of investing in a company, it is also advisable to inquire about a stock portfolio or an income statement. These documents will provide the investor with information on the company's assets and liabilities.

The Better Business Bureau of the community where the business is located may be able to provide information on complaints received about the firm. They may also be able to tell you if the company is responsive to consumer problems.

The answers to such questions may enable you to detect whether the business is legitimate and will help to protect you against the possible loss of your money and time. While we cannot comment on the legitimacy of a particular company, we do hope that you take all of the necessary safeguards to protect your interests. We hope this information is both useful and helpful to you.

For further information:

Federal Trade Commission: http://www.ftc.gov

Better Business Bureau: http://www.bbb.org