What is the Better Business Bureau (BBB)?

The Better Business Bureau (BBB) is a nonprofit organization that serves consumers by providing information about companies.
🤔 Understanding the BBB
The Better Business Bureau (BBB) got its start in 1912. The BBB helps individuals locate companies and organizations that meet their needs. Consumers can visit the BBB to find ratings on the trustworthiness of hundreds of thousands of businesses. The BBB helps to encourage ethical and consumer-driven behavior in businesses. It keeps organizations accountable by sharing customer reviews and a BBB rating. Ratings are based on information such as firms’ histories of customer complaints and whether any government agency has taken action against them. The BBB has an accreditation program where companies can sign up to have the BBB evaluate them and give its stamp approval over the firm’s level of transparency and integrity.
Suppose you were in the market for a mechanic to repair your car and wanted to make sure you found one who would treat you fairly. You might visit the Better Business Bureau website to find mechanics in your area. You can choose to filter the list to only look at businesses accredited by the BBB or look at all local mechanics. The website would display the business’s information, its BBB rating, and any customer complaints the business has.
Takeaway
The Better Business Bureau (BBB) is like the yellow pages, but with business ratings…
Before we relied on the internet for our information, people would use the yellow pages of their local phone book to find information on businesses. The yellow pages told you what services the business provided, how you could contact them, and where they were located. But imagine if the yellow pages also told you what level of service and honesty a business provided its customers. That’s how the BBB works. It doesn’t just give you a list of businesses — It also tells you which have the highest ratings and best service.
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What is the Better Business Bureau (BBB)?
The Better Business Bureau (BBB) is a nonprofit organization that encourages ethical and customer-driven behavior by businesses. The BBB has been around since 1912 and, since then, has provided service to millions of people. The BBB seeks to create a level of trust between businesses and consumers. It sets standards for ethical behavior by businesses, draws attention to those businesses that fail to act appropriately, and allows consumers to share their experiences with specific businesses.
Does the BBB do anything?
The Better Business Bureau (BBB) implements several different activities to encourage ethical behavior by businesses. First, it has an accreditation program where businesses can pay to be members if they abide by a particular code of ethics. The BBB also has a rating system where it rates businesses based on the level of service they provide to customers.
The BBB is not a regulatory authority, as it can’t create or enforce regulations on businesses. That being said, it does work collaboratively with federal, state, and local law enforcement authorities to let them know about any potentially fraudulent activity or scams.
Ultimately, it’s important to remember that the BBB is not a government agency, and it can’t shut down businesses or force them to take any particular action. Filing a complaint or negative review against a business with the BBB is not equivalent to reporting the business to a government or regulatory authority.
How do BBB ratings work?
One of the functions of the Better Business Bureau (BBB) is to assign ratings to companies based on the level of quality care and customer service they provide. The BBB uses the information it receives from the business, as well as complaints from customers. It does not take into account customer reviews.
The BBB assigns ratings on a scale as high as A+ and as low as F. These ratings are drawn from a 100-point scale. Not every business gets a rating. If the BBB can’t collect any information about a particular business, it won’t assign a rating to that business.
What factors affect a business’s BBB rating?
The Better Business Bureau (BBB) uses seven different factors when considering a company’s BBB rating. First, it looks at the complaints a business has received through the BBB website. It looks at the number of complaints, how the company responded to those complaints, how quickly the firm responded, and whether the BBB feels the business made a good-faith effort to resolve the problem. A business might lose points for having a pattern of the same types of complaints occurring over and over.
Next, the BBB considers what type of business a particular firm is. By type of business, it means whether the business operates within the law or practices business ethics. The BBB also looks at how long a business has been around. Businesses with a long history of ethical behavior and customer service might receive a better rating.
The BBB also takes into account how transparent a firm is in its business practices. If the BBB finds that a business fails to provide accurate and complete information about its products and services, ownership, or location, then the BBB may lower its rating.
Next, the BBB considers whether a business has met its previous commitments to the BBB. For example, if the business fails to follow a mediation settlement or award, then the BBB may lower its rating.
The BBB also looks at whether the business is following licensing requirements and government regulations. If a particular business is required to have a license to operate and doesn’t, then the BBB will reduce its rating. The BBB also looks at whether the government has taken any action against the company, either financial or otherwise.
Finally, the BBB considers the advertising practices of a particular business. If the business uses misleading advertising or misuses the BBB name in its advertising efforts, then the BBB may lower its rating.
What are the BBB accreditation standards?
One of the services the Better Business Bureau (BBB) provides is accreditation to companies that abide by a specific set of ethical standards. Businesses pay to become BBB-accredited members. In exchange for their membership dues and meeting the BBB standards, the businesses can have the BBB seal on their business profiles, websites, or business locations.
The BBB accreditation standards that companies have to meet are:
- Build trust
- Advertise honestly
- Tell the truth
- Be transparent
- Honor promises
- Be responsive
- Safeguard privacy
- Embody integrity
How do you check a business with the BBB?
If you’re looking for a business to meet a particular need, you might consider using the Better Business Bureau (BBB) business finder to check out the reviews and ratings of different companies. You can search for a particular company or search for businesses within a particular industry in your area.
At the top of each page of the BBB website, you’ll find a search bar where you can type in the business information and your location. In the search bar, you can type in a type of business (for example, ice cream shops), or you can search for a specific business (for example, Main Street Ice Cream Shoppe). The website will give you the option of searching all businesses or just BBB-accredited businesses. The search results will pull up all businesses that meet the description.
Each business’s profile includes the following information:
- The business’s name and description of services
- The business’s location, contact information, and hours of operation
- Whether or not the business is accredited and for how long they have been
- The business’s BBB rating
- Customer reviews and complaints
How do you file a complaint with the BBB?
One of the ways that the Better Business Bureau (BBB) creates accountability for businesses is by allowing consumers to voice their concerns about companies and leave public reviews. There are several different ways you can voice your concerns about a company you feel is acting inappropriately.
First, you can file a complaint on the BBB complaint page. The organization accepts complaints about your experiences with a business or its products and services. The BBB then forwards complaints to the business owner and asks them to respond in a particular number of days. These complaints appear on the company’s BBB profile. The BBB does not handle customer complaints about:
- Disputes between employers and employees
- Discrimination accusations
- Issues that have been or currently are under litigation or arbitration
- Complaints against specific individuals
- Concerns regarding federal, state, or local laws
- Complaints about the activity of government agencies
- Complaints that aren’t related to business
Next, you can leave a review of a particular company. In your review, you can leave between one and five stars and share your experience with the company. The BBB publishes reviews on a business’s profile and allows the business owner to respond.
You can also voice concerns about a particular company by reporting a scam using the BBB scam tracker. Scams you can report to the BBB are those that fraudulently take money from consumers or that are operating illegally. The BBB publishes a map of all ongoing scams so that consumers can avoid losing money.
Finally, the BBB allows consumers to report companies using misleading advertising to manipulate customers. Using this tool, consumers can also report companies guilty of price gouging.
Can you trust the BBB?
You might be wondering if the Better Business Bureau (BBB) is really a trustworthy source of unbiased information for consumers. After all, the organization makes money not from consumers, but from the businesses they accredit and rate.
In the past, the BBB has received criticism and negative media attention for awarding higher ratings to those companies that choose to pay its membership fees. The organization was accused of granting A+ ratings to fake companies who paid the membership fee and low ratings to legitimate companies who refused to pay the BBB.
The BBB responded to this criticism by changing the criteria it uses to rate companies. It stopped taking into consideration whether a company paid membership dues to be an accredited business when determining its rating. Additionally, the organization now publishes its list of criteria, in order to create more transparency in the process.
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