About the Better Business Bureau

The Better Business Bureau is an organization operating in the U.S. and Canada in small, local branches. The Bureau bestows its seal on businesses that meet certain criteria in order to relate the trustworthiness of that business. The organization also maintains a database of complaints against businesses.

History

In 1912, the Better Business Bureau was founded largely to warn the public about dangerous medical practices and false advertising for medications. False claims being made by companies like the Coca-Cola Company were becoming the targets of lawsuits and legislation during this time. The BBB was formed with the intent of providing companies with a way to self-regulate their advertising practices. Since that time, the Bureau has expanded its duties to many areas of business and consumer protection.

Features

The BBB is run internationally by a governing board that includes local BBB leaders, law experts and business executives. This board provides the requirements that each local chapter must follow. Each local BBB chapter is governed by a local governing board that is monitored by the international organization. Whether a business is accepted into the local BBB is up to that chapter. A business that moves from one area to another must apply again to the local chapter in the new area. It is possible to be accepted by one chapter and to be rejected by another.

Function

The Better Business Bureau offers membership to companies that comply with its reliability standards. The business must keep up those standards in order to keep their accreditation. The business must also pay annual dues to the BBB. In return, businesses may be granted dispute resolution mediation and can use the BBB seal on their documents. For consumers, the BBB provides a place to lodge complaints against businesses and to find out if a business has already had complaints lodged against it.

Benefits

The benefit to businesses is a seal of reliability that goes with accreditation. The BBB seal creates consumer confidence and provides mediation at low cost or even free in some circumstances. For consumers, the BBB is involved in monitoring advertising for false or unrealistic claims. The organization also reports on charities to inform consumers about how much they spend on maintaining the organization and how much goes to the ones in need.

Theories/Speculation

There is a lot of speculation about whether the BBB is more interested in protecting consumers or protecting the businesses that it represents. Because the accredited companies pay yearly dues to maintain the BBB, the mediation that is provided is seen by some as a conflict of interest for the Bureau. They have been accused of protecting companies that were in the wrong as well as accepting any company that could afford their dues. They also have a policy of not informing consumers about any complaint that is being investigated and do not reveal the nature of complaints that have been filed and investigated.