Yesterday, we took a look at sites like Rip Off Report that purport to give consumers a “heads up” on the kind of businesses we’re better off avoiding.  After explaining why consumers should take these sites, which are based on unedited and barely-moderated user-generated content, with more than a single grain of salt, I promised a little information about how you can conduct more meaningful consumer research.

Here are a few of the best online resources for uncovering some of the potential scams, rip-offs and bad deals out there:

Consumer.gov-   This U.S.-government operated site provides information about scams and issues ranging from food safety to transportation concerns.  It’s a good place to find federal news updates and can quickly connect you to a variety of government-produced consumer awareness handbooks.

Federal Trade Commission’s Consumer Site-  The site announces that “[t]his section of the FTC website offers practical information on a variety of consumer topics. The information here can help you avoid rip-offs and exercise your consumer rights.”  It will also put you in touch with necessary information to file FTC complaints if you’ve been victimized by an unscrupulous business.

Better Business Bureau-  The BBB provides information about rip-offs and allows you to check out businesses and charities to see what complaints (if any) have been filed against them by unhappy consumers.  Membership in the BBB isn’t necessarily proof that a company is on the up and up, but it is a valuable indicator, as the organization won’t ally itself with known troublemakers.

Direct Marketing Association-  This is a trade association of sorts, whose membership consists of those in the direct mail business.  If you have problems or questions about junk mail, this is a good place to start your research.  The DMA has also produced a variety of guides focused on improving your online consumer experience.

The Google Directory-  Google has catalogued a variety of sites dedicated to consumer affairs and consumer protection issues.  Their list of sites can be a valuable research for those with questions about everything from the veracity of advertising claims to the quality of individual products.  Note that the sites listed in the directory are not operated by Google and that you should use due diligence when evaluating any claims made on the sites listed therein.

Which brings us to the real key to being a smart consumer.  Although the above sites can be extremely helpful, they may not have the kind of specific information you need about an individual product or service.  In those cases, you’re left with your own wits and the ability to search the Internet to get the scoop.  As we learned when looking at Rip Off Report, not all information sources are necessarily the kind of collections in which you want to put your trust.

When you’re evaluating reviews and comments about companies and services you need to do so properly.  Here are a few hints for being a smarter consumer that should help you to effectively protect your financial interests.

Consider the source. Consider the source of the information you’re reviewing.  That means “testing” the claims you’re reading against your own personal experience and knowledge base for credibility.  It also means looking at the possible motivations of the person or company who has posted the information.  Do they appear to have a financial interest in influencing your perspective?  Are they affiliated with the company under consideration or are they working for the competition?  You need to assess consumer information with an understanding that peoples’ motivations aren’t always pure and that biases (intentional or not) may influence the quality of reporting you receive.

Consider the quality of argument. If a complaint or review seems wildly “over the top” or hard to believe, approach it critically.  There are troublemakers and “griefsters” out there who are more than happy to attack others without any real basis in reality.  There are also many people who have more time on their hands than they do sense in their heads.  If you find material that seems bizarre or out of whack, remember that you don’t need to be honest or sane to type something that appears on the ‘net.  You just need a keyboard and an attitude.  If the arguments that form a complaint or review seem weak, scattered or strange, don’t let them govern your decision making.

Consider corroborating evidence. If someone has ripped off one person, they’ve probably nailed others, too.  If a company is doing a great job, they’ll probably have their own little fan club.  Don’t let any single evaluation determine your perspective.  Find out if a particular complaint or concern that resonates with you has support from other sources.  If you’re finding hundreds of similar reviews, there’s a stronger likelihood that their true than if you just find one attack piece.

The bottom line:  Use your head.  Approach consumer protection intelligently and don’t check your common sense at the door.  If you do your due diligence using a smart approach and quality resources, you’re likely to avoid making decisions that will have an adverse impact on your financial well-being.