Better Business Bureau

Last updated

International Association of Better Business Bureaus, Inc.
Founded1912;112 years ago (1912)
Type 501(c)(6) non-profit organization
52-1070270
Focus Consumer protection
Industry self-regulation
Location
Area served
United States, Canada and Mexico
ProductsBBB Business Reviews
Accreditation for businesses
Dispute resolution services
Services Rating site
Subsidiaries BBB Wise Giving Alliance [1]
Revenue
$215 million
Expenses$20 million
Employees
2,500
Website www.bbb.org

Better Business Bureau (BBB) is a private, 501(c)(6) nonprofit organization founded in 1912. BBB's self-described mission is to focus on advancing marketplace trust, [2] consisting of 97 independently incorporated local BBB organizations in the United States and Canada, coordinated under the International Association of Better Business Bureaus (IABBB) in Arlington, Virginia. [3]

Contents

Better Business Bureau is not affiliated with any governmental agency. Businesses that affiliate with BBB and adhere to its standards do so through industry self-regulation. To avoid bias, BBB's policy is to refrain from recommending or endorsing any specific business, product or service [4] even though they still advocate for business interests.

The BBB rating system uses an A+ through F letter-grade scale. The grades represent BBB's degree of confidence that the business is operating in good faith and will resolve customer concerns filed with the BBB. BBB's ratings are explained on its Ratings Overview page. BBB employees evaluate a business's behavior when assigning a rating.[ citation needed ]

According to BBB, nearly 400,000 local businesses in North America were accredited as of July 2022. [5] BBB prospects successfully vetted businesses to become dues-paying 'accredited businesses' that pledge and continue to adhere to the BBB Code of Business Practices. [6] In return, BBB allows accredited businesses in good standing to use its trademarked logo in marketing materials.

History

The concept of the Better Business Bureau has been credited to several court cases, such as United States v. Forty Barrels and Twenty Kegs of Coca-Cola , initiated by the government against a number of organizations, including the Coca-Cola Company in 1906. [7]

In 1909, Samuel Candler Dobbs became president of the Associated Advertising Clubs of America, now the American Advertising Federation (AAF), and began to make speeches on the subject. In 1911, he was involved in the adoption of the "Ten Commandments of Advertising," one of the first codes of advertising developed by groups of advertising firms and individual businesses. Similar organizations in succeeding decades, such as the National Better Business Commission, Inc. of the Associated Advertising Clubs of the World (1921), and the National Association of Better Business Bureaus, Inc. (1933), merged to become the Association of Better Business Bureaus, Inc., in 1946. In 1970, the Council of Better Business Bureaus (CBBB) was established by a merger of the Association of Better Business Bureaus and the National Better Business Bureau.[ citation needed ] The Council of BBBs included the Philanthropic Advisory Service (PAS), which advised donors about national charities. PAS later merged with the National Charities Information Bureau to form the BBB Wise Giving Alliance.

In 2019 the Council of BBBs split into three entities - the BBB Wise Giving Alliance (advice for donors to charities), BBB National Programs (national industry self-regulatory programs), and the International Association of Better Business Bureaus (BBB's self-governing organization.) [8]

Structure and funding

Each BBB is overseen by its own board of directors and chief executive officer. Each must meet international BBB standards, which are monitored by the IABBB. The IABBB is governed by leaders of local BBBs, as well as several independent subject matter experts such as academics and legal experts. BBBs are chiefly funded by local accredited businesses, which also make up BBB boards of directors. A study by a business school dean at Marquette University found that ninety percent of BBB board members are from business. [9]

Businesses that move from one BBB jurisdiction to another may need to apply for BBB accreditation in the new BBB location unless they have a system-wide accreditation. IABBB is funded primarily by membership dues from BBBs, which vary from year to year.[ citation needed ]

Dispute resolution procedures

BBB handles complaints from consumers about their marketplace experiences with businesses, and also publishes customer reviews both positive and negative. The organization provides dispute resolution through procedures established by the International Association of Better Business Bureaus, and implemented by local BBBs. Usually, disputes can be resolved through mediation; when appropriate, low- or no‑cost arbitration may also be offered and provided through the BBB. BBB acts as a neutral party when providing dispute resolution services. [10]

Complaints about the practice of professions like medicine and law are usually not handled by BBB and are referred to associations regulating those professions. [11] BBB does not handle complaints that have gone to court or are in the process of going to court as the complaint is already being handled by an alternate entity. [12]

If BBB receives a consumer dispute, BBB contacts the business in question and offers to mediate the dispute. A business does not need to be a member of BBB to use its mediation services. BBB accreditation, or membership, is completely optional for a business to accept and participate in through the payment of dues. Past complaints allege that BBB compiles ratings based upon their ability to collect money from businesses, and not entirely upon business performance. [13] However, since 2010, no relationship exists between a business's rating and its accreditation status.

Rating system and accreditation

Until 2008, BBB rated companies "satisfactory" or "unsatisfactory." On January 1, 2009, BBB moved to a new system based on a school-style A+ to F rating system. [14] The 16 factors have been posted on each business profile since the program's inception [15] and the details on the points awarded as well. [15] Initially there was a 17th factor worth 4 points for businesses that were Accredited. That process was changed in November 2010 in response to criticism in the media and from the Connecticut attorney general who accused BBB of using "pay to play" tactics. [13] The Attorney General of Connecticut demanded that BBB stop using its weighted letter grade system, calling it "potentially harmful and misleading" to consumers. [16] In response, the Council of Better Business Bureaus changed the BBB ratings system to cease awarding points to businesses for being BBB members, and to institute closer monitoring of BBB sales practices. [17]

If a business chooses not to provide basic information, such as size and start date, BBB may assign a not-rated (NR) rating. [15] [18] An "NR" rating due solely to a company not providing information would state: "BBB does not have sufficient background information on this business."[ citation needed ]

A business is eligible for BBB accreditation if it meets, in the opinion of BBB, "BBB Standards for Trust". [2] There are eight BBB Standards for Trust that BBB expects its accredited businesses to adhere to: build trust ("maintain a positive track record in the marketplace"), advertise honestly, tell the truth, be transparent, honor promises, be responsive (address marketplace disputes), safeguard privacy (protect consumer data) and embody integrity. [19]

Criticism

In 2010 ABC's 20/20 reported in a segment titled "The Best Ratings Money Can Buy" about the irregularities in BBB ratings. [20] They reported that a man created two dummy companies which received A+ ratings as soon as he had paid the membership fee to the BBB of the Southland, serving the Los Angeles area. They also reported that business owners in Los Angeles were told that the only way to improve their rating was by paying the fee. In one case a C was turned to an A immediately after a payment and in another case a C‑minus became an A+. The chef Wolfgang Puck said that some of his L.A.-based businesses received F ratings because he refused to pay a fee. These allegations led to procedures against the BBB of the Southland from the BBB system. On March 12, 2013, the Council of Better Business Bureaus expelled the Los Angeles-based Better Business Bureau of the Southland, the largest local BBB, claiming that the group had not met the Council's "standards relating to accreditation, reporting on businesses, and handling complaints." [21] [22] The Los Angeles chapter disputed the charges and continued to operate under the new name of Business Consumer Alliance. [23] [24] [25] [26] From March to November 2013, BBB served the four-county Los Angeles area via a "Virtual BBB" staffed by volunteers from other BBBs. The effort won the American Society of Association Executives "Power of Association" award. [27] In November 2013 the Council of Better Business Bureaus reassigned the Los Angeles area to three established California BBBs. [28]

In 2011, a New York Times columnist described a complaint from a consumer that the Austin chapter of the Better Business Bureau refused to resolve complaints against companies if customers do not pay a $70 mediation fee. [29]

Canada

Integration of US and Canadian operations

On August 16, 2011, the then-named Council of Better Business Bureaus (CBBB) announced the formal integration of operations in the United States & Canada, effective immediately. [30]

According to the statement, integration marks the way "for an improved customer experience for those who purchase goods and services across the border". Stephen A. Cox, President and CEO of CBBB, said: "The U.S. and Canada remain each other's largest trading partners. We are really one North American marketplace, and the BBB system now reflects that. Not only will it be easier for consumers to check out businesses in either country, it will be simpler for them to file a complaint or resolve a dispute." The move was supported by the Canadian Council of Better Business Bureaus (CCBBB). "Given the advances in technology and the globalization of services, it no longer makes sense to maintain two separate systems," said M. Jean Lemyre, chair of the CCBBB. "The vast majority of consumers initially contact BBB through the Internet. Aligning BBB services into one integrated system will be more efficient for businesses in Canada, and will ensure that consumers continue to receive the high quality of services they've come to expect from BBB." [31] [32] [33] [34]

BBB trademark authorization revoked from four Canadian offices

The then-named Council of Better Business Bureaus (CBBB) revoked the BBB name & trademark from four Canadian Better Business Bureaus. The CBBB said it made the move to withdraw trademark authorization from the offices in Hamilton, Windsor, Montreal and St. John's after determining these four Canadian offices did not meet the defined standards of operation.

CBBB realigned the boundaries of its affected Canadian offices and folded them into larger offices. Hamilton has been gathered under the banner of the BBB's Kitchener office, [31] while the territories in SW Ontario (including Windsor) are now part of the Western Ontario region [34] based in London, ON.

The Hamilton, Montreal & St. John's offices have also changed their names or closed following what they termed a takeover by the U.S.-based Council of Better Business Bureaus. [35] The Hamilton, Ontario BBB adopted the name Canadian Businesses and Charity Bureau. [36] In May 2012, the Hamilton organization was locked out of its office by its landlord in a rent dispute and ceased to operate. [37] The Montreal BBB changed its name to L'Office de Certification Commerciale du Québec or Québec Commercial Certification Office, while the BBB in St. John's, Newfoundland closed. [38] These areas have since been picked up by others, and as of August 2022, all of Canada is served by 10 BBBs.

See also

Related Research Articles

Consumer organizations are advocacy groups that seek to protect people from corporate abuse like unsafe products, predatory lending, false advertising, astroturfing and pollution.

American World University (AWU) is an unaccredited institution offering post-secondary education programs by distance learning. It has no physical campus. It awards academic degrees. In January 2000 American World University offered "all degrees" for $1,000 as a "New Years Special".

ZipZoomfly was an internet retailer for computer parts and related products. Based in Newark, California, ZipZoomfly was founded in May 1999 under the name XtraPlus. The site relaunched in January 2000 as Googlegear. ZipZoomfly is a U.S. service mark of Xtraplus Corporation.

Amazon Marketplace is an e-commerce platform owned and operated by Amazon that enables third-party sellers to sell new or used products directly to consumers on a fixed-price online marketplace alongside Amazon's regular offerings. Using Amazon Marketplace, third-party sellers gain access to Amazon's customer base, and Amazon expands the offerings on its site without having to invest in additional inventory.

<span class="mw-page-title-main">BlueHippo Funding</span>

BlueHippo Funding, LLC was an installment credit company operating in the USA founded by Joseph Rensin that claimed to offer personal computers, flat-screen televisions and other high-tech items for sale to customers with poor credit. In an article published November 25, 2009 titled BlueHippo files for bankruptcy: Company blames its bank; was accused of violating settlement with FTC, Eileen Ambrose reported that the company "was forced to file for protection under Chapter 11." On Wednesday December 9, 2009, the company filed for Chapter 7 bankruptcy after having its funds frozen by their payment processor. A petition to a Delaware bankruptcy judge to release the funds was denied. The company's advertised toll-free phone number and website are no longer functioning.

The BBB Wise Giving Alliance (WGA) is an American charity monitoring organization. Under previous names, it has been reporting on nationally soliciting charities since the 1920s. BBB's Give.org evaluates charities, at no charge, using the 20 BBB Standards for Charity Accountability to help donors verify the trustworthiness of soliciting organizations and to strengthen charity practices. Resulting reports are freely accessible to the public at Give.org. These standards were developed with the help of the charitable community.

Poetry.com is a domain name that has historically been used for poetry-sharing in various forms.

Video Professor, Inc. was an American company that developed and marketed tutorials for a variety of computer-related subjects, such as learning to use Microsoft Word, Microsoft Windows, and eBay. Video Professor was founded in 1987 by John W. Scherer and was located in Lakewood, Colorado. It was known in the U.S. for its commercials and infomercials on late night television and print ads almost daily in USA Today and other nationally-distributed newspapers. The company has been the subject of controversy regarding its sales and billing practices, as well as lawsuits it has filed against online critics of the company.

BBB National Programs, an independent non-profit organization that oversees more than a dozen national industry self-regulation programs that provide third-party accountability and dispute resolution services to companies, including outside and in-house counsel, consumers, and others in arenas such as privacy, advertising, data collection, child-directed marketing, and more. The Center for Industry Self-Regulation (CISR) is BBB National Programs' 501(c)(3) non-profit foundation. CISR supports responsible business leaders in developing fair, future-proof best practices, and the education of the public on the conditions necessary for industry self-regulation.

BPA Worldwide is a United States-based not-for-profit media auditing company that provides independent, third-party audits of media including print, digital, out-of-home and events.

<span class="mw-page-title-main">Sustainable Forestry Initiative</span> North American forest certification standard

The Sustainable Forestry Initiative (SFI) is a sustainability organization operating in the U.S. and Canada that works across four pillars: standards, conservation, community, and education. SFI was founded in 1994 by the American Forest & Paper Association (AF&PA). SFI is the world's largest single forest certification standard by area. SFI is headquartered in Ottawa and Washington, D.C.

<span class="mw-page-title-main">Heritage Internet Technologies</span> Web Hosting and Design Company

Heritage Internet Technologies was a web design and web hosting company located in Provo, Utah and founded in 2001 which specialized in creating custom websites for small and medium-sized businesses. According to Inc.com's Inc. 5000, in 2007 it was the fastest growing company in Utah, the 3rd fastest growing IT company in the United States, and the 22nd fastest growing company overall. The company was ranked 392nd for 2008 in the Inc. 500 list, and 49th in the list of top 100 IT companies.

Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent businesses from engaging in fraud or specified unfair practices to gain an advantage over competitors or to mislead consumers. They may also provide additional protection for the general public which may be impacted by a product even when they are not the direct purchaser or consumer of that product. For example, government regulations may require businesses to disclose detailed information about their products—particularly in areas where public health or safety is an issue, such as with food or automobiles.

Cambridge Who's Who, also known as Worldwide Who's Who, is a vanity publisher based in Uniondale, New York. It describes itself as highlighting people's professional careers by publishing encapsulated biographies. For additional payment, the publisher also provides other promotional services such as press releases, videos, and Executive of the Year awards. The company is located in Uniondale, New York. As of 2010, Donald Trump Jr. was spokesman and "executive director of global branding" of the company. As of November 2016 the business was "not accredited" by the Better Business Bureau of Metropolitan New York, Long Island, and the Mid-Hudson Region.

<span class="mw-page-title-main">MyLife</span> Online information broker

MyLife is an American information brokerage firm. The firm was founded by Jeffrey Tinsley in 2002 as Reunion.com and changed names following the 2008 merger with Wink.com.

<span class="mw-page-title-main">Royal Holiday Club</span>

Royal Holiday Club is a vacation club membership operator and resort developer based in Mexico offering points-based vacation ownership.

<span class="mw-page-title-main">My Pillow</span> Pillow-manufacturing company based in Minnesota, U.S.

My Pillow, Inc. is an American pillow-manufacturing company based in Chaska, Minnesota. The company was founded in 2009 by Mike Lindell, who invented and patented My Pillow, an open-cell, poly-foam pillow design. From 2004 to 2009, My Pillows were sold through Lindell's Night Moves Minnesota, LLC, and have been sold through My Pillow, Inc. since 2009. My Pillow has sold over 41 million pillows, due mostly to TV infomercials. The company started with five employees in 2004 and had 1,500 employees by 2017.

A vanity award is an award in which the recipient purchases the award and/or marketing services to give the false appearance of a legitimate honor. Pitches for Who's Who-type publications, biographies or nominations for awards or special memberships can have a catch to them in which the honoree is required to pay for recognition.

LuLaRoe is a United States-based multi-level marketing company that sells women's clothing. It was founded in 2012 by DeAnne Brady and her husband Mark Stidham and is currently based in Corona, California.

The Media Rating Council (MRC) is a United States-based nonprofit organization that manages accreditation for media research and rating purposes.

References

  1. ↑ "Form 990: Return of Organization Exempt From Income Tax" (PDF). Archived from the original (PDF) on April 3, 2013. Retrieved October 17, 2013.
  2. 1 2 "The Better Business Bureau Vision, Mission & Vision". Council of Better Business Bureaus. Archived from the original on December 13, 2014. Retrieved December 12, 2014.
  3. ↑ "Council of Better Business Bureaus – U.S. BBB". Bbb.org. Archived from the original on August 28, 2014. Retrieved March 29, 2012.
  4. ↑ "The Better Business Bureau FAQs and Information – U.S. BBB". Bbb.org. Archived from the original on November 5, 2019. Retrieved March 29, 2012.
  5. ↑ "CBBB Annual Reports". BBB. Archived from the original on December 11, 2015. Retrieved December 16, 2015.
  6. ↑ "BBB Code of Business Practices – U.S. BBB". Bbb.org. Archived from the original on August 24, 2014. Retrieved November 20, 2013.
  7. ↑ Kleber, John E. (July 11, 2014). The Encyclopedia of Louisville. University Press of Kentucky. ISBN   978-0-8131-4974-5.
  8. ↑ "BBB Standards for Charity Accountability". give_org. Retrieved March 14, 2023.
  9. ↑ Parmar, Neil (September 24, 2008). "Is the BBB Too Cozy With the Firms It Monitors?". SmartMoney .
  10. ↑ "Dispute Resolution Processes and Guides – U.S. BBB". Bbb.org. Archived from the original on April 2, 2012. Retrieved March 29, 2012.
  11. ↑ Roos, Dave (December 10, 2008). "HowStuffWorks "File a Complaint with a BBB "". Money.howstuffworks.com. Retrieved March 29, 2012.
  12. ↑ "Alternatives to Going to Court | The People's Law Library". Peoples-law.org. Retrieved March 29, 2012.
  13. 1 2 Patrick Preston (November 19, 2010). "Better Business Bureau Changes Ratings System Following Criticism". nbc4i.com. Associated Press. Archived from the original on January 30, 2013. Retrieved May 19, 2012.
  14. ↑ "New BBB Letter-Grade A+ Through F Ratings System Helps Businesses Evaluate Suppliers, Improve Operations". eNews Park Forest. April 5, 2024.
  15. 1 2 3 "What are BBB Ratings?". BBB. Archived from the original on July 25, 2011. Retrieved March 29, 2012.
  16. ↑ Rhee, JOSEPH; Ross, Brian (November 12, 2010). "Terror Group Gets 'A' Rating From Better Business Bureau? Consumer Watchdog Accused of Running 'Pay for Play' Scheme With Grading System". 20/20.
  17. ↑ "A Message from the President of CBBB", November 18, 2010, reproduced at "BBB revises rating system to regain consumer trust". RELO RoundTable. Archived from the original on November 26, 2010. Retrieved December 2, 2010.
  18. ↑ "The Better Business Bureau checks up on companies but who checks up on the Better Business Bureau?". blogs.absnews.com.
  19. ↑ "The Better Business Bureau Standards for Trust – U.S. BBB". Bbb.org. Archived from the original on March 23, 2012. Retrieved March 29, 2012.
  20. ↑ "BBB Ratings". ABC.
  21. ↑ Lopez, Ricardo (March 12, 2013). "Better Business Bureau expels Los Angeles chapter, largest in nation". Los Angeles Times. Retrieved May 25, 2013.
  22. ↑ "Better Business Bureau Expels Los Angeles Organization for Failure to Meet Standards" (Press release). Council of Better Business Bureaus. Retrieved May 25, 2013.
  23. ↑ "Better Business Bureau L.A. chapter changes name after expulsion". Los Angeles Times. March 12, 2013. Retrieved December 16, 2020.
  24. ↑ Lopez, Ricardo (March 12, 2013). "Better Business Bureau L.A. chapter changes name after expulsion". Los Angeles Times. Retrieved May 25, 2013.
  25. ↑ "About Us". Business Consumer Alliance. Retrieved May 25, 2013.
  26. ↑ "Business Consumer Alliance Responds to BBB Allegations of 'Pay to Play'" (Press release). Business Consumer Alliance. Retrieved May 25, 2013.
  27. ↑ "BBB in LA wins award in 2013". www.bbb.org. Retrieved August 2, 2022.
  28. ↑ "New BBB Serving Greater Los Angeles Has Banner First Month Helping Consumers and Businesses" (Press release). Council of Better Business Bureaus. April 17, 2013. Archived from the original on July 3, 2013. Retrieved May 25, 2013.
  29. ↑ Segal, David (March 12, 2011). "Complaint Resolved? Well, Not Exactly". The New York Times . Retrieved March 13, 2011.
  30. ↑ "Better Business Bureau Integrates U.S. and Canadian Operations". Better Business Bureau. August 16, 2011. Archived from the original on January 22, 2015. Retrieved January 22, 2015.
  31. 1 2 "Hamilton Better Business Bureau vows to stay open". The Hamilton Spectator. August 24, 2011.
  32. ↑ "Better Business Bureau Integrates U.S. and Canadian Operations". Council of Better Business Bureaus. August 16, 2011. Archived from the original on January 22, 2015. Retrieved January 22, 2015.
  33. ↑ Van Alphen, Tony (September 7, 2011). "Consumer watchdog to reduce local presence in Canada - Toronto Star". The Toronto Star.
  34. 1 2 Ellen Van Wageningen (October 31, 2011). "Battle brews over business accreditation in Windsor" (PDF). The Windsor Star. Archived from the original (PDF) on January 22, 2015. Retrieved January 22, 2015.
  35. ↑ Van Alphen, Tony (September 7, 2011). "Consumer watchdog to reduce local presence in Canada". Toronto Star. Retrieved May 25, 2013.
  36. ↑ Coward, Cathie (August 24, 2011). "Hamilton Better Business Bureau vows to stay open". The Hamilton Spectator. Retrieved May 25, 2013.
  37. ↑ Hayes, Molly (May 20, 2012). "Business bureau locked out". The Hamilton Spectator. Archived from the original on September 3, 2014. Retrieved May 29, 2013.
  38. ↑ MacEachern, Daniel (July 28, 2011). "Better Business Bureau closing Aug. 16". The Telegram. St. John's. Archived from the original on November 23, 2012. Retrieved May 25, 2013.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.