Better Business Bureau

Better Business Bureau

The Better Business Bureau (BBB) is a non-profit organization focused on advancing marketplace trust. The BBB, founded in 1912, is a collection of 106 independently incorporated local BBB organizations in the United States and Canada, coordinated under the Council of Better Business Bureaus (CBBB) in Arlington, Virginia. The BBB aims to promote ethical business practices, leading to an environment where buyers and sellers can operate under a common understanding of trust.

History

The concept of the Better Business Bureau was initiated in 1912 by a Boston-based advertising executive who sought to improve the public's perception of advertising by eliminating misleading advertisements. This led to the creation of the first BBB. Over the years, the BBB has evolved, focusing not only on advertising but also on disputable business practices. The expansion of the BBB into what it is today reflects the organization's adaptability to the changing marketplace and its challenges.

Function

The primary function of the BBB is to collect and provide free business reviews on more than 4 million businesses to over 123 million requests from consumers in 2017, helping make the BBB's website rank among the top 300 most-visited websites in the United States. The BBB serves as an intermediary between consumers and businesses, handling nearly a million consumer disputes against businesses each year. The organization encourages companies to resolve disputes through mediation or arbitration.

Accreditation

Businesses have the option to become accredited by the BBB. To be accredited, a business must apply and pay a fee for review and monitoring for compliance with the BBB's standards of trust. These standards include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses must also adhere to established BBB standards of advertising, consumer privacy protection, and are subject to regular BBB monitoring.

Criticism

The BBB has faced criticism regarding its rating system and the perceived pressure on businesses to become paid members to improve their BBB rating. Critics argue that the BBB's accreditation process and membership fees can lead to a conflict of interest, influencing the impartiality of ratings and reviews. The organization has made efforts to address these concerns by revising its rating system and making its business review process more transparent.

Impact

Despite criticisms, the BBB remains a significant resource for consumers seeking reliable information on businesses and their practices. The organization's efforts in promoting ethical business practices and resolving consumer disputes contribute to a more trustworthy marketplace. The BBB's educational resources, consumer tips, and scam alerts also play a vital role in consumer protection.