It's not exactly easy to book an interview with Ed Magedson, the
self-described consumer advocate and creator of the wildly
successful
www.RipOffReport.com.
Not because he doesn't want to talk. Magedson loves talking,
especially when the subject is his beloved Web site.
It's just that he's so incredibly particular. Arranging one
simple meeting is an exercise that captures, perfectly, why
Magedson is so good at getting results — and why he's infuriated
the CEOs of several midsize companies to the point that they
accuse him, flatly, of extortion. He overthinks every detail.
And it would never occur to him to stop pushing before he gets
what he wants, even if he's not sure what that is.
First there's where to meet. It has to be a public place. A dog
park? A restaurant? Even after Magedson decides on lunch at
Chompie's, he calls back with instructions about which bank of
booths to pick. He's planning to park in the handicapped spot,
he says, and from the right booth, he'll be able to keep an eye
on his dog.
After discussing that issue for 15 minutes, he calls back to
clarify: It can't be just any booth near the window. It has to
be the one closest to the servers' station, to allow both
dog-seeing and laptop use.
In the end, the dog is basically ignored, and Magedson doesn't
even bring his laptop into the restaurant. (Yes, he parks in the
handicapped spot. And, no, he's not disabled. He has a
handicapped sticker, but it belonged to his late father. "I'm
not perfect," he says.)
But he does get his booth of choice. It opens up just as he
walks in the door.
"Things like this always happen to me," he says, beaming.
Throughout a three-hour meal of bagels, lox, and whitefish
salad, Magedson runs his servers ragged. He needs butter, which
doesn't come with his order, and another container of cream
cheese, even though he isn't done with the one he has. Then,
despite a bowl of creamers on the table, he asks two different
waiters to bring him more, only to seem confused when the table
ends up with three bowls' worth. And only after the bill arrives
does he remember that he needs hamburger for his dog. After
that bill arrives,
as it turns out, he needs orange juice. And when the juice
arrives, it's too small, so a waitress is dispatched to bring
him a second one.
He's relentless — and he's not even out of sorts. On the
contrary, Ed Magedson is enjoying himself immensely. It's just
that he's so used to agitating, to throwing everything he can at
the wall, just in case something needs to stick. He doesn't know
how else to behave.
He's the postmodern Columbo, a shambling figure who eventually
gets his way not because he's slick or charming, but because he
wears people down. He is a nitpicker, a fighter, a squeaky wheel
who's mastered the art of getting grease.
He's exactly what you'd expect of a self-titled consumer
advocate, with one key difference.
Thanks to the Internet, people actually have to pay attention to
him.
Before the rise of the Web, the powerful could write off
gadflies such as Ed Magedson. But the Internet provides a bully
pulpit that Magedson has harnessed with startling success — and
woe to the business owner who tries to ignore him.
The Rip-Off Report has become a boon to the disgruntled, who've
posted complaints taking on everything from poor business
practices to deadbeat dads, ofen without a shred of proof. For
Ed Magedson, it's been an even bigger gift. It's made him
powerful, and it's made him money — although certainly not a
dot-com millionaire.
Magedson won't remove posts. He's not interested in evidence
that would offer vindication.
But if you're willing to pay, Ed Magedson just might be willing
to talk.

Magedson guards his privacy maniacally. His business address is
a post office box. The house where he lived until recently was
owned by one of his limited liability companies — and he had to
move, he says, when his enemies figured out his location,
despite his precautions. Even his car and utilities are
registered in a way that renders them untraceable.
To Magedson's credit, people only know how hard he's worked to
hide because they've tried just as hard to find him. He says
they want to kill him. (They say they only want to serve him
with lawsuits . . . although they're certainly not above posting
information about him on the Internet while they're at it.)
But despite his efforts to live off the public-records grid,
there's plenty you can know about Ed Magedson without even
talking to him: the legal battles, the allegations of extortion,
even his parents' death certificates and the paperwork from that
old 1970s pot bust.
That's the Internet for you. And if Magedson is virtually
anonymous in Maricopa County, where he's lived for almost two
decades, he's famous on the Internet.
Before the Internet became ubiquitous, you could only humiliate
someone if you had connections, if you could get the attention
of a newspaper reporter or were willing to picket in front of an
office. Today, you can get revenge with just a few keystrokes —
and face revenge just as easily.
Magedson (pronounced MAJ-id-sen) has been on both sides.
He claims that it doesn't bother him. "When people stop suing
me, and stop talking about me, and stop threatening me, that's
when I'll have to worry," he says during an early conversation.
In the course of being interviewed for the story, he'll repeat
the statement no fewer than three times.
Magedson came late to computers, and he's still not, by any
means, a techie. But he latched on to a successful Internet game
plan in the mid-'90s, even before the dot-com frenzy began, and
he never wavered. In its eight years of operation, his Web site
has managed to do what so few Web sites have done: It found
readers. Today, it's even making money.
The site is called the Rip-Off Report. A clearinghouse for
customer complaints, it boasts 8
billion hits, more
than 225,000 user-written "reports" on various companies, and
enough unsubstantiated allegations to make a CEO contemplate
suicide.
The Rip-Off Report's power comes from its technical mastery.
Before many people had even heard of Google, the Rip-Off Report
had figured out how to land at the top of its searches. In other
words, Google a company's name, and almost immediately you get a
report trashing the business — far more interesting than a
corporate Web site.
Companies that haven't spent millions on marketing or on a major
Web presence are particularly susceptible: Zazou Model
Management, the Rebate Processing Center. But even Primerica,
the well-known financial services division of Citigroup, hasn't
been immune. Google the company, and the Rip-Off Report is in
the top three links.
And so customers who couldn't get a return call from a service
rep, much less a TV station, suddenly have the online equivalent
of a megaphone.
But
www.RipOffReport.com isn't just a place to vent:
Class-action lawyers, government investigators and reporters all
use it to find victims. Not coincidentally, it's been credited
with torpedoing more than one lousy business — and given
Magedson a national reputation as a consumer advocate and a
First Amendment warrior.
He relishes that role. Talking about his work, he tends to slip
into the third person, as if he's dreaming aloud about how his
story should be told.
"Ed knows it's sweeps week when he gets calls from reporters
around the country looking for scams," he says, then repeats it
later for good measure. Or, "Ed was formulating what he wanted
to do . . ."
For all his self-aggrandizement, Magedson is well aware that his
advocacy persona has lately come under fire. (Initially, he
urged New Times
to check out the threats he's faced and the lawsuits against
him, only to e-mail later how "disappointed" he is that his
worst critic has been interviewed.)
Just as Magedson has spent his life dogging people in power, now
people are dogging him. More than a dozen companies have sued
him. And, though he initially denies it, court records show that
he's sued at least one business owner, too.
He revels in his role as a true-blue advocate. But with at least
30 companies now paying him to mitigate bad reports on his Web
site, Magedson is facing sticky ethical questions.
Critics ask how he can accept payment from the same companies
that he claims to be fighting — especially when he used to be so
critical of the Better Business Bureau for the same thing.
And if he's using reports with dubious accuracy to pad his own
pockets, does that make him a First Amendment champion — or an
extortionist?

Fifty-five years old, raised on Long Island, Magedson has the
nasal voice of a movie sidekick — think Bruno Kirby in
When Harry Met Sally . . .
, whom he somewhat resembles. But his hair is pure
"Weird Al" Yankovic: Almost entirely bald on top, he wears it
long and curly everywhere else.
This isn't vanity, a middle-aged man posing as a kid. Instead,
it's the remnant of a hippie past, Magedson's way of clinging to
his outsider status even today.
Magedson had his run-in with City Hall when, as a college
drop-out in the '70s, he started a coast-to-coast network of
street-corner flower stands. He found himself embattled in every
town, and at every turn: "I was dealing with all these
government agencies, and the lies that the bureaucracy would
tell you. The city would have staff members, so-called staff
members — most of the time, they're a bunch of liars."
Even though city bureaucrats caused his flower business to fail,
he says, he was left with a small fortune. So he moved to
upstate New York and invested in HUD housing.
Once again, the town fathers used every trick in the book to
stop him, he says. They redrew the regulations for low-income
housing; people called him a slumlord; the police harassed him.
He sued them, but he lost.
Wanting to be near his elderly parents, Magedson moved to Mesa.
He started an indoor swap meet at a strip mall at Gilbert and
Main. Again, he says, city inspectors did all they could to
drive him out.
Again, he sued; again, court records show, he lost. The appeals
court refused even to hear his case. And when Magedson's
landlord sued him for back rent, court records show, he ended up
owing more than a few grand.
It was only after that fiasco that he met Mesa attorney Dale
Thorson — and discovered his second act as a consumer advocate
and Internet entrepreneur.
Thorson was doing estate planning for Magedson's parents, and
got to chatting with Magedson. Thorson was impressed with tax
work Magedson had done for another family member and told him
so. "The kid is brilliant," Thorson says. "Just very, very
intelligent."
Magedson asked Thorson if he had any clients who needed help.
Living with his parents, his expenses provided for, he wanted to
use his skills to get justice for people who needed it.
Thorson asked him to take a look at a case involving an elderly
couple who'd been screwed by a rug cleaner. Magedson ended up
recouping their entire investment, Thorson says, and the couple
was grateful to have avoided a court case.
As for Thorson, he was thrilled by the energy Magedson devoted
to his task — and that the fledgling advocate refused to charge
the people anything for his services when he was done.
In no time, Thorson says, he was asking Magedson to assist a
number of people who'd come to him needing help. "He's not this
slick guy," he says. "He's the Columbo guy" — like the TV
detective played by Peter Falk, whose awkward manner can conceal
a sharp mind and an uncommon persistence.
"There isn't a challenge he didn't take on," Thorson continues.
"I can't think of one where he didn't get positive results.
Sometimes the client didn't want to keep going on the case, and
they'd drop it. But it was never because Ed wanted to give up."
Magedson began distributing a flier, promising, for $250, to
help people fight against a corrupt City Hall or companies that
had screwed them. He says he never actually charged the fee;
instead, he used it to weed out people who weren't serious about
pursuing their claims.
He began to hone a process of just how to fight The Man, to
develop a formula that really worked. He was planning to write a
book. (Today he sells that book, a slim paperback, from the
Rip-Off Report for $21.95. Not to give away a trade secret, but
the formula basically comes down to threats to picket, and then
picketing.)
One day in the mid-'90s, visiting a shop owned by some of his
former swap-meet tenants, he says, he met a woman who designed
Web sites. Hearing about his unusual line of work, she asked
him, "Why don't you make a Web site?"
And that was the start. Before that, Magedson says, "I didn't
even know how to turn a computer on." But the site, a simple ad
for his advocacy services, took off: "I got people to call me. I
thought, 'Gee whiz!' Because I didn't believe in the Internet."

From Magedson's initial foray into online advertising, the
Rip-Off Report may seem like an obvious outgrowth today, with
everyone doing business on the Web.
But Magedson was ahead of the curve. In 1998, when the Monica
Lewinsky scandal first became public on a Web site called the
Drudge Report, many Americans didn't even know how to access the
Internet, much less use it to their advantage.
But that's the year Magedson registered the Rip-Off Report Web
site. And like the Drudge Report, another early online
juggernaut,
www.RipOffReport.com wasn't just a static presentation
hawking a business. It was
the business.
Today, the Rip-Off Report seems old-fashioned next to even the
simplest blog. It has none of the clean functionality that
Google has perfected; it's a mad jumble, plagued with technical
problems. More than half of
New Times' searches on any given day ended in
futility; the site lacks the technical capability to handle its
own content. (Magedson says a long-awaited redesign should be
online within the month.)
One reason for the tech problems is the site's massive volume:
On top of the 225,000 initial complaints, the site has layer
after layer of businesses' rebuttals and readers chiming in. And
though it would probably increase the site's user-friendliness
if posts of a certain age were deleted, Magedson doesn't like to
get rid of anything. You can still get complaints dating back at
least six years.
It doesn't help that the Rip-Off Report has a fairly low
standard of relevance. An entire category has sprung up with
people complaining about adulterous partners. At last count, it
had 207 entries.
Magedson pays a team of stay-at-home moms to vet posts for
obscenities and social security numbers. But beyond that, he
admittedly finds few things too scurrilous for publication.
For example. Consider this post about a man who's identified by
first and last name and hometown. The man is, "Lindsey"
complains, "nothing but a loser. He steels [sic] from everybody
including his own family. Not to mention he beats his own
mother. . . . He spends all his time and money on drugs. No
wonder he has no life."
Or, less personal but no less toxic, the Maryland hospital where
nurses are alleged to "cut bodies open after they kill people"
and steal organs. Or the Scottsdale communications company
that's alleged to have "scammed millions of dollars from honest
people."
For someone so smart, Magedson is curiously accepting of even
the most off-the-wall allegations. He estimates that 98 percent
of the site's complaints are true, which seems ridiculous after
perusing numerous comments in which people accuse each other of
everything from spreading sexually transmitted diseases to grand
larceny.
"If you ask Ed the question, 'Ed, do you think there are phony
reports?', of course there are going to be," he says. "'Are some
of them exaggerated?' Probably so.
"But," he concludes, blithely, "if you're a business being
complained about, you probably deserve what you're getting."

For business owners who Google themselves and are startled to
discover they're actually scam artists, cheapskates, or even
child abusers, the Rip-Off Report can be shocking. After all, if
a newspaper printed such unsubstantiated allegations, it would
be bankrupted in no time by lawyers with libel claims — some far
from frivolous.
The Internet, as Magedson's victims soon learn, is different.
Newspapers are on the hook for libel if they merely publish a
damaging untruth without proper vetting. So long as a story is
about a private citizen, the standard is mere negligence: If a
paper thinks something is true, but doesn't bother to verify, it
can be held liable.
A Web site, however, can publish even those claims that writers
know to be false:
an ex-husband's rant that his saintly wife has herpes, an
allegation that a hated city councilman is a pedophile. Forget
mere negligence — online reports can be downright malicious.
For that, you can thank Congress, says Eric Goldman, an
assistant professor at the Santa Clara University School of Law
and director of the High Tech Law Institute. (And, oddly enough,
you can thank porn, too.)
Before 1996, Goldman explains, Web sites were treated more like
newspapers. If their operators edited or monitored content from
their users, they could be considered a publisher. In a few
cases, they were held responsible for publishing without
verification.
But then came congressional concern about online porn. And Web
operators argued that they were caught in a Catch-22: If they
removed porn, they'd be on the hook for anything they left up
that proved libelous.
So the Communications Decency Act, passed in 1996, attempted to
restrict Internet porn — and, at the same time, give Web sites
special immunity. Under the act, Goldman says, "you can be aware
of bad content, do nothing about it, and still not be liable for
it."
Ironically, the Supreme Court struck down the porn part of the
law soon after it was passed. But the exemption for Internet
publishers stands. The U.S. Supreme Court has shown zero
interest in entertaining a challenge to it, Goldman says, much
less overturning it.
Goldman believes Congress made a good decision. "It's very hard
to put online service providers in the role of judge," he says.
"If we asked online service providers to do this, they'd take
the path of least resistance. They'd take the content down. And
if they did that, we would see a chilling extinction of negative
feedback about products and services in the marketplace."
And so Web publishers today have the freedom to publish real,
uncensored customer reports — and, while they're at it, to
publish false information.
This is not just true of Ed Magedson.
Take, say, America Online. After the Oklahoma City bombings, a
guy named Kenneth Zeran was shocked to see that someone smeared
him all over AOL message boards, claiming that he was selling
tee shirts glorifying the bombings. The messages included his
telephone number.
When radio stations picked up on the story, Goldman says, Zeran
started receiving a dozen nasty phone calls a day. Hard to blame
the guy for suing.
"If you wanted a sympathetic plaintiff, you got him," Goldman
says. "This guy got screwed." But the court was emphatic,
Goldman says: AOL was not responsible.
"And since then, we've had three dozen cases, all of them saying
Zeran was right,"
Goldman says. "The person who wrote the words is liable. The
online service is not."

There's one good reason the darker corners of the Internet are
so nuts: because they can be. And the legal immunity granted to
online publishers also explains the continued existence of the
Rip-Off Report.
Companies suing Magedson for libel all learn, soon enough, that
the law isn't on their side. It may irritate them, or even hurt
their businesses and reputations, but they simply can't force
him to take down even the nastiest posts.
"It's extremely frustrating for a company to have their
number-one search result be a Rip-Off Report," explains
Magedson's attorney, Maria Crimi Speth. "And because it's legal,
and because the posts are often anonymous, they have no one to
take it out on but Ed."
Magedson says he's spent at least $1 million on legal bills.
Judging by the volume of suits he's fought — and the size of the
case files — he's not exaggerating.
But for Magedson, the blowback he gets is clearly a great part
of the fun.
During his interview at Chompie's, he's interrupted when one of
his four cell phones starts ringing. (All have numbers ending in
4357, he notes, which spells "HELP.") To his delight, it's a
business owner calling to ask him to remove a report on the Web
site.
It's an exercise bound to end in frustration for the business
owner, but Ed Magedson is enjoying himself immensely.
First he explains that he can't take down any report, even if
it's demonstrably false. Then he asks the guy to send him an
e-mail.
And then he's off on a 10-minute monologue. Since 2000, he tells
the man, more than 800 businesses have called to thank him.
Several companies have been so grateful for his Web site, he
says, that they've sent him money at Christmas.
"Let me just say, we're all going to be blogged," he is saying.
"Right or wrong, good or bad, we're all going to be blogged
today. Um, if you're not, your children definitely will be. And
if they even mention something on some blog somewhere, your last
name will come up when you're doing a Google search . . .
"If you drive too fast going down the street in your
neighborhood, some neighbor's going to blog you and say, 'That
dirty SOB, he drives too fast going down the street, and he
should learn how to drive.' . . . It's just the way our system
is today. Everything's changed."
At the end of the call, Magedson notes, optimistically, that
"the truth will set you free." But he makes no offer to
investigate the truth of the report, or take it down if it's
phony.

The companies that sued Magedson for libel, despite the
Communications Decency Act, initially seemed surprised to learn
they didn't have much of a case.
But the word is getting out, and lawyers who've challenged the
Rip-Off Report lately have made stronger legal claims. They
allege that Magedson isn't just passively posting the
information. He writes reports, or uses surrogates to do it,
they say.
They claim he also writes headlines, and that it's the headlines
that are libelous.
Magedson denies those claims emphatically. But he can't deny the
site reflects his unique obsessions — and that he tends to play
up certain reports based on his personal preferences.
Even today, the City of Mesa is listed as one of the report's
"Top Rip-Offs," with a link to Magedson's tale of swap-meet woe.
And then there's the Better Business Bureau. For years, the
organization has been a Magedson target. In his self-published
book, Do-It-Yourself Guide:
How to Get Rip-Off Revenge, he spends an entire page
railing against the Bureau's system of sorting out complaints
before announcing them to the public.
"In our opinion, the Better Business Bureau (and their
inaccurate files) is a bust, because they solicit membership in
exchange for favorable status," he writes.
The site goes much further. It calls the bureau a "racketeering
enterprise."
Magedson himself chooses the "Top Rip-Offs." And, as he once
admitted under oath, he doesn't exactly have a scientific
selection system.
The questioning came during a lawsuit from a guy named Steve
Miller. Miller, who owns a Fort Lauderdale credit-counseling
company, has become Magedson's sworn enemy after the two men
battled over reports about Miller's company.
Miller is the only person, to date, who's been able to get
Magedson to give a deposition in a court case. By hiding his
whereabouts, Magedson has been able to personally evade service.
(Even Magedson's corporate agent is pretty tricky to find. Ever
heard of Reeves Mountain, Arizona? According to Magedson, it's
somewhere northeast of Phoenix, and close to just about nothing.
Mapquest doesn't have a listing. Neither does Google Maps. And
if you haven't heard of it, imagine some lawyer from Wisconsin
trying to find the guy, much less serve him with papers.)
The deposition in Miller's case was supposed to be limited
strictly to issues of jurisdiction: Could Miller sue the Rip-Off
Report in Florida when the company is based in Arizona?
But things got extraordinarily testy. For five hours, Magedson
and Miller's attorney, Christopher Whitelock, sparred over just
about everything they could possibly spar over. Even Magedson's
own attorney, Speth, seemed exhausted by the contentiousness of
the debate. "Ed, please, let me handle this," she says at one
point, according to the transcript, while Magedson and Whitelock
argue over her.
Near the end of the long day of questioning, though, Magedson
answered some questions about why he'd chosen Miller's company
as a "Top Rip-Off." And he admitted it wasn't because there were
numerous complaints about the company.
It was because Steve Miller had been playing hardball. Miller
had called him, Magedson said, threatened him, and posted stuff
online that embarrassed him.
"And I have no other way to retaliate to him," Magedson said,
according to the transcripts. "You know, or to respond to him,
so . . ."
Miller's attorney, Whitelock, pressed him: "You put it up there
a week or so ago to retaliate against him, correct?"
Magedson tried to backtrack. "Well, I guess that's the wrong
word."
"Well, you used it, not me," Whitelock pointed out.
"Yeah, I take it back," Magedson said. "It was the wrong word."

Even with that admission, Magedson ought to be covered by the
Communications Decency Act. He's allowed to edit. He's allowed
to move content around.
But Goldman, the professor in California, notes that Magedson
recently lost two motions to dismiss libel claims based on the
merits of the law. In each case, the business that is suing the
Rip-Off Report has been given the judge's permission to
continue.
"The Rip-Off Report cases are some of the very few exceptions to
an otherwise uniform application of the law in a defendant's
favor," Goldman says.
And that's probably not because judges are rethinking the
Communications Decency Act, or because Speth doesn't know what
she's doing. (An attorney with the respected Phoenix firm Jaburg
& Wilk, she clearly does.)
It's because, as the number of lawsuits against Magedson has
increased, lawyers have learned about Magedson's willingness to
take money from companies to mitigate bad complaints. He calls
it his "corporate advocacy program."
Here's how it works: Businesses pay Magedson a fee, plus a
monthly retainer. And in exchange, Magedson makes "EDitor's
comments" next to complaints — generally saying that the claims
are false.
Business owners are already allowed to post rebuttals to
complaints. But Magedson weighing in has a much stronger effect.
It's not "he said versus she said." It's an impartial arbiter of
truth declaring that one side is right and another side is
wrong. And, though Magedson says he investigates every report
and would never support a company that wasn't in the right, his
comments come without a clear disclosure that he's now on the
company's payroll.
But it's hard to blame a business for ponying up.
Take Chandler Hill Partners. The Tucson firm, which specializes
in job searches and outplacement, was getting dogged by
complaints on the Rip-Off Report. CEO Sarah Hightower Hill was
convinced the posts came from competitors, but she knew that no
one would believe that coming from the company's CEO.
Making it clear that she is not speaking specifically about
Magedson's site, Hill says that online bashing is "one of the
biggest dilemmas facing American business today."
"All of us," she says, "are at the mercy of what people might
write about us online, even if those people wish us ill will or
have nothing to do with our business. It's a very damaging
thing."
And so Chandler Hill paid to join Magedson's corporate advocacy
program. Today, if you look up the company on Magedson's site,
you get a four-page editorial, written by Magedson himself.
Just the headline, written in Magedson's typically unedited
style, makes it clear: "[M]ost complaints posted are verified
untrue, competitors making false claims to hurt companys
reputation, Most complaints not from real clients, evil work of
a competitor."
For Hill, it's been a blessed relief. She says she's pleased
with the program.
But some businesses question why they should have to pay tens of
thousands of dollars just to clear their names from complaints
that are false in the first place.
Indeed, the program is not cheap. Speth says there's a sliding
scale, depending on the number of complaints, and that it can be
as cheap as a few hundred dollars. But documents in court files,
and several business owners who spoke to
New Times, suggest
that joining the program was offered to some at more than
$50,000. And there's a monthly fee on top of that.
Of course, the program is still much, much cheaper — and more
effective — than litigation.
Israel Kushnir, CEO of the Illinois-based George S. May
International Company, says his consulting firm was tarred by
"heinous" complaints on the Rip-Off Report, including one report
alleging that the company's founder was a pedophile who
inflicted porn on his staff at recent staff meetings. Since the
founder has been dead since the 1960s, the complaint was
ludicrous.
The online allegations were infuriating — not just to him, he
says, but to the founder's daughter and granddaughter, who
currently own the company.
So, in 2004, George S. May sued. But Kushnir says he met with
Magedson earlier this month and told him he's decided to drop
the case.
"I realized Ed Magedson and George S. May were simply accidental
enemies," Kushnir says. "He didn't start his site to attack
George S. May. He didn't even know George S. May. Rather than
continue to spend an enormous amount of money and energy and
litigation, I thought, there's got to be a better way to deal
with things like that."
The George S. May Company is going to join Magedson's corporate
advocacy program. (Kushnir declined to say how much he's
paying.) Basically, Kushnir will pay Magedson to reveal the
complainants against the company, and then Kushnir can do what
he would have wanted to do all along — address them.
Good news for Magedson. But not such good news for the people
who had anonymously blasted George S. May. After all, Magedson
will be giving them up. And if they're current employees,
they're probably going to be in trouble with a capital T.
Kushnir says he won't sue anybody — he's learned his lesson —
but if it's a disgruntled secretary who called the founder a
pedophile, it's hard to imagine things will end happily for her.
Kushnir says he's happy with how things ended. But the incident
does raise some ethical questions.
It would be one thing if businesses were paying for public
relations, which is how Magedson tries to frame it. But, really,
what businesses are paying for is a chance to fight back against
a negative.
And you only get to fight back if you pay.
Magedson's critics believe it's clearly extortion — a point
they've hammered hard in recent lawsuits.
"If it was just a bulletin board where he's posting complaints
without editing or embellishing them, then he'd have a defense,"
says Christopher Sharp, a Florida-based attorney who is suing
Magedson's company on behalf of a Colorado company that provides
training courses in finance, real estate, and the stock market.
(Sharp's claim recently survived Magedson's attempt at dismissal
thanks to an appeals-court decision based on the Communications
Decency Act.)
"But it's pretty clear that he writes posts himself," Sharp
says, a point Magedson denies. "And if you ask him to take them
down, he says, 'Just join my corporate advocacy program.'
"I have to tip my hat to him," Sharp says. "He knows how to run
an extortion scheme."

Magedson's critics will tell you that he's only in it for the
money, and public records offer some evidence that finances
matter more to Magedson than he likes to admit.
There's an e-mail Magedson wrote to a class-action attorney
several years ago. The attorney had contacted him about working
together to help the clients on the site — but walked away when
Magedson asked him for $800,000.
There's the fact that, despite Magedson's posturing, neither of
his two corporations has ever been a not-for-profit, which is
the case with the Better Business Bureau, his chief competition.
He sells his book for $21.95, he gets paid by attorneys for
"advertising" after he finds them clients, and his site has
plenty of advertisers — yet he's still asking for donations via
PayPal.
And then there's the case of a pizza deliveryman named John
Unger. New Times
profiled Unger in 2001 after he sued Pizza Hut over a host of
allegations. He even claimed that his bosses made him pick up
crystal meth while on the job.
As it turns out, Magedson had helped Unger tell his story to the
media. Magedson also hooked Unger up with his own lawyer, Maria
Crimi Speth.
The case eventually settled. But not before some damaging facts
came to light — facts that, even today, are in the court file in
Pinal County.
And it's not just the transcripts of Magedson's calls to a Pizza
Hut executive threatening him with media coverage and a fat
class-action lawsuit if he didn't give Unger $200,000. Those
don't paint Magedson in the best light, but threatening
businesses is an admitted part of his shtick.
Taking a victim's settlement money is not. But as the court
records show, Unger told his psychiatrist that he'd signed a
contract with Magedson, promising him 50 percent of any
settlement he got in the case. (Magedson denies the 50 percent
figure, although he admits that he did stand to take a
percentage.)
Reports from the psychiatrist, filed as evidence in the case,
show that the situation between Magedson and Unger got ugly as
the case dragged on.
"There was a lengthy discussion about the threats Ed has made,"
the psychiatrist reported. "[Unger] reported he has been up and
e-mailing back and forth with Ed."
The psychiatrist suggested to Unger that he should just turn off
the computer every night at 9. "There was a conversation about
cult behavior, of how the person in power gets his followers
tired by keeping them from getting enough sleep and then the
person is too tired to be thinking for themselves." Unger
agreed, the shrink wrote, that "this is what has been
happening." He decided to have no more contact with Magedson.
In Magedson's defense, even the angry John Unger admitted that
he had first suggested upping Magedson's fee because he'd been
so happy at the way Magedson had championed his case. And
Magedson's attorney, Speth, says that she believes Magedson is
only interested in money because he needs it to keep fighting
for his cause.
From his appearance, he's clearly a guy who doesn't care about
expensive things. His beloved dog is a mutt. He drives a Chevy
Malibu. It would clearly be an upgrade for him to shop at the
Gap.
"I laugh when people say he's an extortionist, and he's
money-hungry," Speth says. "He wants to make enough to keep the
Web site going. He cares about what it's doing — not what it's
making."
Speth admits, however, that Magedson's willingness to take money
from companies is not a simple matter. "I agree it complicates
the issue," she says. "I absolutely and completely disagree that
it's extortion — or that there's anything wrong with it."

The trouble with making sense of the riddle that is Ed Magedson
is that he's not obsessed with truth; — he's obsessed with
winning arguments. And so his story changes. Or there are
exceptions. Or caveats.
One of the biggest caveats is Steve Miller, Magedson's sworn
enemy. Magedson will tell you he's never sued anyone, but he did
sue Miller in Maricopa County Superior Court. (He dropped the
suit two months later.) He will also say that he never blocks a
business owner from posting a rebuttal to a complaint, but he
admits he made an exception in Miller's case.
Magedson says Miller has threatened his life, and he has a tape
to prove it, which he's dying to play. Miller says Magedson has
done things just as bad: For one, Magedson somehow obtained his
social security number, and gave it to another consumer advocate
who wanted to sue him. (In his deposition, Magedson admitted to
passing on the information, although he claimed, somewhat
disingenuously, that there was "no evil intent.")
Miller, clearly, has gotten under Magedson's skin. And one
reason, even beyond the whole death-threat controversy, is that
he's built, by far, the most damning case against Magedson.
Two years ago, Miller put up a Web site devoted entirely to
bashing Magedson. It included his mug shot for a 1970s pot bust
(the charges were later dropped) and the fact he'd been arrested
for passing bad checks. (Those charges were dropped, too.) It
also claims he's a wanted criminal, a slur that would certainly
be at home on the Rip-Off Report, but which seems to have little
basis in reality.
But beyond the rhetoric, there's that deposition, the one time
Ed Magedson's talked under oath about the Rip-Off Report. And,
under questioning from Miller's attorney, Magedson seems to
admit the allegation that he still denies most vehemently: that,
for money, he's deleted reports from his site.
Under oath, Magedson first said that no, he didn't remove
complaints for the businesses that were paying him. Then he
changed his tune.
When Magedson was first developing his corporate advocacy
program, he was working with a company called Mini Vacations.
And when someone posted something about Mini Vacations that was
clearly false, Magedson seemed to admit under oath that he'd
removed the complaint.
He said it was "a test," though he didn't explain what he meant.
"And we did it for a very good reason," he added, "and we never
did it again."
"What was the very good reason?" Miller's attorney asked.
"It was a company that was on the program," Magedson said. "And
this company has like — if every company was like them . . . I
wouldn't even have as much jobs. This company is an excellent
company."
When the attorney prodded him, Magedson tried to backtrack.
"I don't know if I ended up doing it or not," Magedson
concluded. "I had offered it. Or either I changed the reports
that they were bogus, or I removed some of the reports. But that
was — excuse me, one time that I did that, if I did not. And I
honestly could not remember.
"If you offered me a million dollars right now, 'Ed, could you
tell me absolute, either yes or no,' . . . I could not tell if
you if I ended up deleting the — some of the reports."
In a telephone followup with
New Times last week,
Magedson denied saying that. He agrees that, initially, when he
was working with Mini Vacations to develop the corporate
advocacy program, he discussed deleting reports for companies.
But that idea was scrapped.
He e-mails later to say that the deposition is wrong, that the
court reporter screwed up. He's now certain he never removed a
report.
But Steve Miller is sure he's got him — and under oath, no less.
He sees Magedson as a sophisticated scammer who happened to
approach the wrong guy.
"When he gets somebody like me contacting him, that's when he
starts licking his chops," Miller says. "He has a mark. He
wanted me to pay him. I told him to screw off."
Miller ultimately dropped his lawsuit: "I got him in deposition,
which was my goal all along. I wanted to show the world he's a
liar and a loser."

If nothing else, Miller's Web site is proof that Magedson's
warning to the business owner who contacted him at Chompie's is
correct: We're all going to end up tarred online by someone.
Especially if we prove as controversial as Ed Magedson.
These days, if you Google "Ed Magedson," you don't get Steve
Miller's Web site in your top hits, but if you want the dirt on
Magedson, you still have plenty of options. The second link is
to a site put up by an entirely different critic. It proclaims
that "Ed Magedson is a wanted criminal that extorts
individuals." And the third link,
www.goodbusinessbureau.com, claims that "Ed Magedson founder
of ripoffreport.com is a wanted criminal that extorts
individuals and legitimate companies for money."
This is how things work in the age of the Internet.
Want to out-shout Ed Magedson? You may not need his corporate
advocacy program. You just need to build a better Web site.
Magedson, of course, has his mantra. Though he's initially
chagrined to be asked about the specifics that guys like Miller
have uncovered, he calls later to make it clear he understands
how the process works. He knows that he suggested
New Times look into
the controversy around him. He's a big boy.
"I know when people stop suing me, and stop talking about me,
and stop threatening me, that's when I'll have to worry," he
says, for the fourth time.
But he's not above doing some damage control.
These days, when you Google Ed Magedson, the top hit isn't an
attack on his methods and isn't even the Rip-Off Report. It's
www.EdMagedson.com, a site devoted to defending Magedson and
his advocacy.
"This site was posted by friends of Ed Magedson as a way to let
victims know, Ed is real, he is human, and he does stand up for
what he believes in," the Web site explains. "We will not fight
the anti-Ed sites, we embrace them. Publicity on Ed (Good or
Bad) helps expose people to the power of free speech and in the
end, more people benefit from sites like RipoffReport.com."
There's only one problem: those "friends" of Ed Magedson.
The Internet, as it turns out, is not just filled with slurs and
complaints and unverified information. Out there in cyberspace
is a registry that shows who owns Web sites and who maintains
them.
When it comes to
EdMagedson.com, the answers are Ed Magedson . . . and Ed
Magedson.
Even after being confronted with this evidence, Magedson denies
writing the words on the site. But he also won't say who did.
In the end, it's hard not to conclude that no one is better than
Magedson at framing his own biography.
The site refers to his "appealingly eccentric personality." And
it offers this summary, littered with his typical typos, the Ed
Magedson story told in the way Ed Magedson would tell it:
"Ed Magedson created a great thing. He dedicated his life to it,
and now gets threats every week. Why? Because he is not afraid
to stand up to corruption, he fights for his rights and ours to
freedom of speech. That double-edge sword means other may speak
freely about Ed as well. Some truth some fiction, but in the
end, you may judge.
"That is the beauty about free speech. You get to hear it all."
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