Ah, yes...Ripoff Report, the bane of my existence. I could tell stories....
But it's not quite true to say the reports are bogus. It would be more accurate to say those who submit reports are the unwitting accomplices of a scheme that falls short of illegality -- or even spam.
The reports are "legit" in the sense that they are the honest expressions of a real person's opinion -- however ill-founded. These reports can be made to disappear (or be downplayed) for a price that masquerades as a "mediation service."
It's actually diabolically clever in a Dr. Evil sort of way.
As to why Google hasn't de-listed Ripoff Report...well, it takes a lot for Google to take such a drastic step: advocating violence or crime for example. But Ripoff Report is doing nothing illegal.
So I'm guessing Google is reluctant to set itself up as an adjudicator of editorial standards. Such a stance runs counter to its corporate DNA. And there may be liability and other legal issues.
Make no mistake: I think what Ripoff Report does is despicable.
And i also think the Better Business Bureau operates an older and more sophisticated version of the same "pay or be damned" scheme. I expressed my views here
http://www.seomoz.org/ugc/the-best-link-your-clients-may-be-missing-12889of
And I got very little support. Most people disagreed or had no idea what I was talking about.
So don't count on Google to be the standards police. If you get hit with Ripoff Report, you have to take your own countermeasures to push the negative reports down.
If the other kids on the playground are being mean, running to Mommy doesn't always work. Mommy may be busy with other stuff or think it's not her job to get involved.