What Is the Better Business Bureau?
The Better Business Bureau (BBB) is one of the most recognized names in consumer protection and business ethics. Since its founding in 1912, the BBB has acted as a bridge between businesses and consumers, promoting transparency, trust, and ethical business practices.
When customers want to know whether a company is legitimate, trustworthy, and reliable, they often turn to the BBB. With over 100 local chapters in North America, the BBB has become a go-to resource for verifying business reputations and resolving disputes.
In this comprehensive guide, we’ll explore:
- What the Better Business Bureau does
- How its rating system works
- Why BBB accreditation matters
- How businesses can use BBB to boost credibility
- Common myths about the BBB
- And much more
What Is the Better Business Bureau (BBB)?
The Better Business Bureau is a nonprofit organization dedicated to advancing marketplace trust. It provides free business reviews, consumer complaint resolution services, and ethical standards for businesses to follow.
The BBB is not a government agency, though it often works alongside regulatory bodies such as the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB).
BBB’s Mission Statement
The organization’s mission is simple yet powerful:
“To be the leader in advancing marketplace trust.”
How It Achieves That Mission
The BBB promotes trust through four key pillars:
- Setting standards for ethical business behavior.
- Encouraging compliance with these standards.
- Supporting consumer education and awareness.
- Handling consumer complaints fairly and transparently.
A Brief History of the Better Business Bureau
| Year | Milestone |
|---|---|
| 1912 | The BBB was founded in the U.S. to combat misleading advertising. |
| 1920s–1950s | Expanded its mission to include all aspects of business ethics. |
| 1970s | Introduced formal complaint resolution systems. |
| 2000s | Launched online platforms for reviews and complaints. |
| 2020s | Strengthened partnerships with digital businesses and e-commerce firms. |
Over time, the BBB has evolved from a local advertising watchdog to an international symbol of trust, serving millions of consumers each year.
How the BBB Works: Core Services and Features
The BBB offers several key services to help both businesses and consumers make informed decisions.
1. Business Reviews
The BBB maintains a massive online database of business profiles. Each listing includes:
- Contact details and ownership information
- Customer reviews and complaints
- BBB rating (A+ to F)
- Accreditation status
You can search for any business at bbb.org.
2. Complaint Resolution
When a consumer files a complaint, the BBB acts as a neutral third party to help resolve disputes. Complaints typically involve:
- Billing or refund issues
- Misleading advertising
- Product or service dissatisfaction
- Warranty or contract problems
3. BBB Accreditation
Businesses that meet BBB’s Code of Business Practices can apply for accreditation. Accreditation indicates a commitment to ethical conduct and allows companies to display the BBB Accredited Business Seal.
4. Scam Tracker
The BBB Scam Tracker helps people report and identify scams across regions. It’s a powerful tool for preventing fraud and protecting communities.
(Visit: BBB Scam Tracker)
5. Educational Resources
The BBB provides consumer guides, fraud alerts, and business resources for ethical operations.
Understanding the BBB Rating System
The BBB assigns businesses a rating from A+ (highest) to F (lowest). This rating reflects how a business interacts with customers and resolves complaints.
Factors That Affect BBB Ratings
| Criteria | Weight |
|---|---|
| Complaint history | 40% |
| Type of business | 10% |
| Time in business | 5% |
| Transparency of practices | 15% |
| Failure to honor commitments | 20% |
| Licensing and government actions | 10% |
Each factor contributes to an overall numeric score (0–100), which is then converted into a letter grade.
BBB Rating Scale
| Letter Grade | Score Range | Description |
|---|---|---|
| A+ | 97–100 | Excellent business performance |
| A | 94–96 | Strong reliability and trustworthiness |
| B | 80–93 | Good business with some concerns |
| C | 70–79 | Average reliability |
| D | 60–69 | Below standard; customer issues present |
| F | <60 | Major unresolved issues or misconduct |
How to Check a Business on the Better Business Bureau
Checking a business’s BBB rating is simple:
- Go to bbb.org.
- Enter the company name, URL, or location.
- Review the business profile.
- Look for BBB accreditation, complaints, and ratings.
Pro Tip: Always cross-check BBB information with other trusted review platforms like Google Reviews and Trustpilot for a balanced view.
Benefits of BBB Accreditation
For Businesses
BBB accreditation is a trust signal that helps businesses stand out. Here’s why it matters:
- Enhanced Credibility: The BBB seal boosts consumer confidence.
- Increased Visibility: Accredited businesses appear higher in BBB search results.
- Dispute Resolution Access: BBB assists in resolving customer issues efficiently.
- Marketing Advantage: Accreditation can be displayed on websites, social media, and storefronts.
For Consumers
- Peace of Mind: BBB-accredited companies have passed an ethics review.
- Transparency: You can view complaint histories and business details.
- Protection: BBB helps mediate if something goes wrong.
How to Get BBB Accredited
Businesses can apply directly via the official BBB accreditation page.
Eligibility Requirements
To qualify, a business must:
- Be operational for at least six months
- Hold all required licenses and registrations
- Maintain a positive track record with customers
- Agree to uphold BBB’s Code of Business Practices
Application Process
- Submit an application online.
- BBB reviews the business for eligibility.
- Pay the annual accreditation fee.
- Once approved, businesses receive the BBB Accredited Business Seal.
Common Misconceptions About the BBB
Despite its credibility, there are some misunderstandings about the Better Business Bureau:
| Myth | Reality |
|---|---|
| BBB is a government agency | It’s a private nonprofit organization. |
| BBB ratings depend on payment | Ratings are independent of accreditation fees. |
| BBB can shut down businesses | It cannot enforce legal penalties, only report them. |
| Only large companies can join | Small and local businesses are the BBB’s foundation. |
BBB and Online Businesses
In today’s digital economy, online scams and fake reviews are rampant. That’s where the BBB continues to evolve.
How the BBB Supports Online Commerce
- E-commerce verification: Confirms legitimate online sellers.
- Digital complaints: Streamlines dispute resolution through the web.
- Scam prevention tools: Protect users from phishing and fake websites.
For example, many consumers check BBB profiles before shopping on platforms like Etsy, Shopify, or independent online stores.
Real-World Example: How BBB Mediation Works
Let’s say a customer orders a product online but never receives it. After repeated failed attempts to contact the seller, the customer files a complaint with the BBB.
Here’s what happens next:
- The BBB notifies the business and requests a response.
- The business replies with a solution — refund, replacement, or explanation.
- The BBB follows up to confirm resolution.
- The complaint is marked “resolved” or “unresolved.”
This process maintains fairness for both parties and helps others see how a business handles conflict.
BBB Ratings vs Other Review Platforms
| Feature | BBB | Google Reviews | Trustpilot | Yelp |
|---|---|---|---|---|
| Verified business profiles | ✅ | ❌ | ✅ | ❌ |
| Dispute mediation | ✅ | ❌ | ✅ (limited) | ❌ |
| Accreditation system | ✅ | ❌ | ❌ | ❌ |
| Review authenticity checks | ✅ | ❌ | ✅ | ✅ |
| Free consumer access | ✅ | ✅ | ✅ | ✅ |
The BBB’s unique advantage is its formal dispute resolution — something most other review sites don’t offer.
The BBB’s Role in Consumer Education
The Better Business Bureau does more than rate companies; it educates the public through:
- Webinars and guides on avoiding scams
- Industry-specific reports (e.g., home improvement, auto sales)
- Annual BBB Scam Tracker Risk Reports
- Partnerships with local consumer protection offices
You can find these resources at BBB.org.
Criticisms and Controversies
No organization is without flaws. The BBB has faced criticism, especially around:
- Perceived bias toward accredited businesses
- Inconsistent regional practices among local chapters
- Limited enforcement authority
However, the organization has addressed these concerns by increasing transparency, publishing rating criteria, and encouraging public accountability.
How Businesses Can Improve Their BBB Rating
To maintain or improve your BBB rating:
- Respond promptly to all complaints.
- Resolve issues professionally and document them.
- Be transparent about ownership and operations.
- Follow ethical advertising practices.
- Renew accreditation and update information regularly.
Consistent engagement and honesty go a long way in keeping a strong BBB reputation.
Frequently Asked Questions (FAQ)
1. Is the Better Business Bureau free to use?
Yes. Consumers can search, read reviews, and file complaints for free. Businesses pay only if they choose to become accredited.
2. Does BBB accreditation guarantee a good rating?
No. Accreditation and ratings are separate. Accreditation reflects ethical commitment; the rating depends on performance.
3. Can the BBB remove negative reviews?
No. The BBB only removes reviews that violate its content policy or are proven false.
4. How can I file a complaint with the BBB?
Go to bbb.org/file-a-complaint, select the business, and follow the step-by-step submission form.
5. Is BBB accreditation worth it for small businesses?
Absolutely. It provides credibility, trust, and visibility, especially for new or local businesses trying to establish a positive reputation.
6. How long does BBB accreditation last?
It’s valid annually, renewable after a review of the business’s continued compliance.
7. Can BBB help with scams?
Yes. The BBB Scam Tracker allows you to report and research scams to protect yourself and others.
Conclusion: Why the Better Business Bureau Still Matters
In a world where online reviews can be easily faked, the Better Business Bureau remains a cornerstone of marketplace trust. It helps consumers make informed decisions and encourages businesses to act with integrity.
Whether you’re checking a company before making a big purchase or managing your business reputation, the BBB offers the tools, transparency, and support needed to foster genuine trust.