The Better Business Bureau (BBB) is a private nonprofit organiꦛzation that operates a business directory and rating system, handles consumer complaints, evaluates charities, offers guidance to businesses and consumers, and alerts the public about deceitful and fraudulent advertisiဣng and selling practices. Its goal is to ensure companies behave appropriately and are trustworthy in their dealings with consumers.

The BBB’s services are free to the public. It's mainly funded through corporate memberships, which require companies to pay a fee in exchange for accreditation.

History of the Better Business Bureau (BBB)

In the early 1900s, unet♛hical selling strategies were rife, and lots of people were ge♏tting ripped off.

Fed up with this and the growing distrust of advertising costing them sales, a group of local businesses and advertising executives banded together, creating the National Vigilance Committee in 1912. They aimed to police malpractice, address public distrust in advertising, and uphold higher standards. These local organizations later became known as Better Business Bureaus.

In its formative years, the BBB handled complaints and sought to stop scammers and con artists. It targeted activities like deceptive advertising, bait advertising, and overcharging for automobile insurance. Many of its early standards were later adopted by the 澳洲幸运5官方开奖结果体彩网:U.S. Federal Trade Commission.

It took many years and various businesses joining forces for the BBB to become what it is today. Key moments included the merging of the National Better Business Commission of the Associated Advertising Clubs of the World and the National Association of Better Business Bureaus in 1946 and the establishment of the Council of Better Business Bureaus (CBBB) in 1970 through the merger of the Association of Better Business Bureaus and the National Better Business Bureau.

Structure and Organization

The BBB is a network of independent, locally operated bureaus in the U.S. and Canada. Each bureau is independently run by its own 澳洲幸运5官方开奖结果体彩网:board of directors and CEO. It handles complaints and business accreditation within its geographic area and is primarily funded by membership fees paid by businesses seeking accreditation within its jurisdiction.

Sitting at the top of the tree is the International Association of Better Business Bureaus (IABBB). The IABBB governs the local BBBs, setting standards and monitoring compliance.

The IABB is𝐆 the BBB’s main organization. It⛦s others include the following:

• A 501(c)(3) educational foundation called the BBB Institute for Marketplace Trust .
• A charity-monitoring entity called the BBB Wise Giving Alliance.
• Its industry self-regulation, accountability, and dispute-resolution programs are collectively known as “National Programs.”

Services Provided by the BBB

The BBB offers a variety 🌞of services to consumers and business👍es. They include the following:

• A business directory: A catalog of local businesses, with each profile containing basic information, including an address, phone number, number of years in operation, customer reviews, complaints, and a BBB grade.
• Business ratings: The BBB grades businesses on a scale of A+ to F.
• Dispute resolution: The BBB helps consumers and companies resolve disputes.
• Charity evaluation: Charities are evaluated based on their governance, results reporting, finances, and the truthfulness and transparency of their communications.
  
• Scam alerts: The BBB warns people about reported scams and 澳洲幸运5官方开奖结果体彩网:fraud cases.
• Business guidance: Entrepreneurs and businesses are taught about ethical standards, and educational webinars are offered to accredited members.
• Consumer support: The BBB gives consumers tips, provides them with access to business profiles, and handles complaints, all free of charge.
  

Mission and Objectives

The BBB says its mission is “to be the leader in advancing marketplace trust.” It claims to do this by doing the following:

• Setting widely followed business standards.
• Encouraging best practices by engaging with and educating consumers and businesses.
• Celebrating good behavior.
• Calling out questionable behavior.
• Creating a community of trustworthy businesses.
  

The bureau sees itself as a watchdog of high standards of trust and wants to be viewed by consumers and businesses as an unbiased and objective source of information and advice.

BBB Accreditation

The BBB offers companies accreditation if they meet its criteria and pay a fee. Accreditation is like a badge of honor. It can help boost a business’s revenues as it lets the public know that it was vetted and found to be trustworthy.

To achieve BBB accreditation, a business𓄧 must meet the foll🐽owing standards:

• Be in operation for at least six months.
• Have resolved all BBB customer complaints.
• Follow all necessary licenses and regulations.
• Honor all contracts and promises made.
• Abide by advertising laws.
• Have a website that protects customer identities and financial transactions.
  

Businesses can apply for accreditation on the BBB’s website. The process requir༺es providing detailed information about the company, including its complaint history and customer service practices and may involve a background check.

If approved, the candidate will need to pay a fee before earning accredited status and being able to display the BBB accreditation seal on their marketing materials. These fees, representing the bulk of BBB’s revenues, depend on several factors, including the business size.

BBB Rating System

To help consumers identify the reliability of companies, the BBB operates a rating system. It collects information from businesses and uses it to give the subject a score that translates into grades from A+ (the highest) to F (the lowest).

The BBB’s ratings are influenced by the business’s complaint history, adherence to laws, amount of time it has been in operation, transparency, honoring of commitments, and advertising veracity. Each of these factors are reviewed and given a score. And these scores are then tallied up to a total, which determines the letter rating.

Controversies and Criticisms

The BBB has plenty of detractors. The biggest criticism is its funding model. Earning revenue primarily from the businesses it grad꧑es doesn’t sit well with everyone. Some also worry that the BBB favors businesses that pay membership fees and that this can impact ratings and complaint handl🎃ing.

Various investigations over the years, including from ABC’s 20/20 show and CNN, found evidence of paying members receiving preferential treatment, including firms on regulators' radar.

Other concerns include the fact that nonmembers aren’t as closely scrutinized as those who pay for accreditation, that complaints can take a long time to be resolved, and that the BBB doesn't have the legal authority to punish companies that misbehave and is limited to just publicly shaming them.

Impact and Influence

The BBB impacts the spending habits ofဣ millions of people in Canada and th🌼e U.S.

Its ratings of businesses and charities are highly influential. Many consumers prioritize companies and charities with a good rating and are likely to 𝄹overlook those with no or a low rating, believing them to be less tr🌳ustworthy and ethical.

The same is true of entities accredited by the BBB. Those with the BBB's accreditation seal not only have higher visibility and the option to add more information to profile pages but are also generally perceived more positively by the public.

The Bottom Line

The BBB is a business directory formed in 1912 from discontent with unsavory adverti♍sing practices that also handles complaints, accredits businesses, and ranks them based on their complaint history, transparency, honoring of promises, length of time in operation, and law abidingness. Its goal is to boost trust and provide the public with unbiased information.

The BBB has done a lot of good in North America. How😼ever, its paid-fo▨r accreditation and rankings are not without controversy.