Report: #748286

Complaint Review:

  • Submitted: Fri, July 01, 2011
  • Updated: Wed, August 29, 2012
  • Reported By: Chris — New York Nationwide United States of America
    2166 faulkner rd
    atlanta, Georgia
    United States of America

Show customers why they should trust your business over your competitors... is a service forced by Elance on the users when there is a dispute. If you are a buyer on and your provider doesn't deliver on the project, Elance will FORCE you to pay $199 and enter into an arbitration run by a scam business called If you don't want to pay $199, Elance will threaten to suspend your account.

Elance was once a great place to hire cheap overseas workers but bulk of the business has moved to new companies like Odesk and as Elance has historically sided with the provider if something went wrong. This has resulted into serious and regular buyers leaving Elance and it now attracts only new and unsuspecting American small businesses who are then scammed by providers with little fear of action from Elance as Elance makes their money by charging those providers and not buyers. is NOTHING but just a website. There is no contact information on the website but just an email address (which rings a lot of bells). They give you an impression that they have a lot of legitimacy but arbitration when one party is forced into it has NO legal grounds. The site is full of fake testimonials, legals misrepresentations and false claims. Even a piece of law doesn't stay valid from one state to another by wants you to believe that their decisions are binding by law.

They tell you that they have a panel of arbitrators which is another white lie. There is ONLY one guy called Robert whose name has come up in many internet complaints. He claims to be a software developer himself and in MOST of the cases, he would just side with the provider because he can only think from their perspective. In our case, he went ahead and sided with the provider. Two months later, the provider was suspended from Elance from receiving too many complaints - talk about the quality of decisions coming from Mr. Robert. If you are a buyer and have a current dispute going on, Robert (most likely the ONLY employee of net-ARB) will rule against you.

There are others reasons that net-ARB or Robert will rule in favor of dodgy providers such as the fee Elance will receive from provider.

If net-ARB is a real, legitimate company and NOT a scam, they are more than welcome to challenge this RIP-OFF report. If they challenge it, I want them to answer following questions:

1) What is their physical office location?
2) What is their business phone number?
3) What is company name behind net-ARB? I want to know business incorporation details.
4) Their association with US arbitration associations or any other industry bodies.

If you are a buyer and being tricked by Elance/net-ARB into an arbitration, just refuse politely and rather do a chargeback with your credit card company. Chargebacks can only be initiated by a certain period and the whole purpose of Elance net-ARB is to push you past that date.


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This report was posted on Ripoff Report on 07/01/2011 10:59 PM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Comment

Beware of Elance/Net-ARB: if your worker decides to not do the work or give you very poor quality work product you will have no ability to reject it!

AUTHOR: Ryheena - (United States of America)

The problem with Elance is that they have no intention of protecting the Service Providers if your hired contractor does not complete the work.  In fact it is in their best interest to make sure that the Service Provider never gets the money back so that they can keep their fees.  They make this possible by colluding with a shell company "Net-Arb" that has no physical address, very few employees, they certainly do not use a "panel" of judges that they claim review your case.

I hired a contractor to build an instant messenger module and laid out approximately 10 requirements very clearly in the initial documentation.  It was quickly evident that the contract was not competent enough and too inexperienced to finish the project.  After laboringthrough a month of excuses and extending the project an extra two weeks to allow him some time to finish, he still only had about 3 of the 10 requirements completed.  Nearly ever feature expected from a generic instant messenging application was missing.  A fact I brought up on multiple occasions to the contractor.  I informed him of these shortcomings before I extended the project for him and thereafter.  After two more weeks of little progress I had enough and kindly explained to him that I would pay him for the work he had done and offered him $800 out of the $1500 project which was very generous on my part.

He sent me to Elance's arbration/mediation and my only recourse was to use Net-Arb who they offer as the only arbitration firm you can use.  In most cases they side on the side of the worker so that Elance does not have to refund the money or their fees.  They will not review any evidence you provide.  Their arbitrators are either incompetent or seem as so because they have no intention of offering you a fair hearing.  They ask for evidence that has very little to do with the case and ignore essential questions like: Did the programmer complete all of the work?  Never was I asked any questions about what was done, never was the programmer asked to verify that his code worked or to demonstrate it.  They will ask a non-technical person to look through all of the code and explain why the code does not work.

 Their decision was to give the programmer 100% of the money and even wanted me to pay his arbitration fees!

I have posted this experience on multiple boards and filed a rip off report here.  Elance and Net-Arb employees are writing rebuttals to them.  Making up extremely upsurd statements about me and my company that are total lies made up to discredit me. They said that my "company had failed because of my poor management which stemmed from a culture of scapegoating and that only employees left were those that had been the most negative about other employees." No one from their company knows anything about my business, who I am, what projects I am working on, or has met or spoken with any of my employees.

Beware, this company is willing to lie and deceive its customers.  There are reports just like mine across the internet.  I post this as a warning to all consumers that are thinking about using Elance or Net-Arb.  Be careful, if your worker decides to not do the work or give you very poor quality work product you will have no ability to reject it!  I would wish anyone to go through this experience.
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