Better Business Bureau facts for kids
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| Founded | 1912 |
|---|---|
| Type | 501(c)(6) non-profit organization |
| Focus | Consumer protection Industry self-regulation |
| Location |
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Area served
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United States, Canada and Mexico |
| Products | BBB Business Reviews Accreditation for businesses Dispute resolution services |
| Services | Rating site |
| Subsidiaries | BBB Wise Giving Alliance |
|
Revenue
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$215 million |
| Expenses | $20 million |
|
Employees
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2,500 |
The Better Business Bureau (BBB) is a private group that helps people and businesses trust each other. It started way back in 1912. The BBB's main goal is to make sure that buying and selling things is fair and honest for everyone.
There are 97 local BBB offices in the United States and Canada. These offices work together under a bigger group called the International Association of Better Business Bureaus (IABBB). This main office is in Arlington, Virginia.
The Better Business Bureau is not part of the government. Businesses that want to work with the BBB agree to follow its rules. This is called industry self-regulation, meaning businesses agree to police themselves. The BBB does not tell you which specific business, product, or service to choose. This helps them stay fair and unbiased.
The BBB uses a simple A+ to F letter-grade system to rate businesses. These grades show how much the BBB trusts that a business is honest. They also show how likely a business is to fix problems customers have. You can find out more about how BBB ratings work on their Ratings Overview page. BBB staff look at how a business acts when they decide on a rating.
In 2022, almost 400,000 businesses in North America were "accredited" by the BBB. This means they were checked by the BBB and agreed to follow its rules. These businesses pay a fee to be accredited. In return, they can use the BBB's special logo in their ads.
Contents
How the BBB Started
The idea for the Better Business Bureau came from a need for fairer advertising. In the early 1900s, some businesses made false claims. People wanted a way to know which companies they could trust.
In 1909, a man named Samuel Candler Dobbs started talking about honest advertising. In 1911, he helped create the "Ten Commandments of Advertising." These were some of the first rules for advertising companies to follow. Over the years, different groups that focused on fair business practices joined together. In 1946, they became the Association of Better Business Bureaus.
Later, in 1970, this group merged with another to form the Council of Better Business Bureaus (CBBB). This new group also helped people learn about charities. Eventually, the part that advised on charities became the BBB Wise Giving Alliance.
In 2019, the Council of BBBs split into three main parts:
- The BBB Wise Giving Alliance, which helps people choose good charities.
- BBB National Programs, which creates rules for industries.
- The International Association of Better Business Bureaus, which is the main group that guides all the local BBB offices.
How the BBB Works
Each local BBB office has its own leaders and a board of directors. But they all must follow the rules set by the International Association of Better Business Bureaus (IABBB). The IABBB is guided by leaders from local BBBs. It also gets advice from experts like professors and lawyers.
Most of the money for local BBBs comes from the businesses they accredit. These accredited businesses also make up most of the BBB's board members. If a business moves to a new area, it might need to get BBB accreditation again in that new place. The IABBB gets its money from fees paid by the local BBB offices.
Solving Problems with Businesses
The BBB helps people who have problems with businesses. They also share customer reviews, both good and bad. The BBB has special ways to help solve disagreements. These methods are set by the International Association of Better Business Bureaus. Local BBBs then use these methods.
Often, problems can be solved by mediation. This is when the BBB helps both sides talk and find a solution. Sometimes, they might offer arbitration. This is a way to solve a problem without going to court. The BBB acts as a neutral helper, meaning they don't take sides.
The BBB usually doesn't handle complaints about doctors or lawyers. Those are sent to groups that regulate those jobs. Also, if a problem is already in court, the BBB won't get involved.
If you send a complaint to the BBB, they will contact the business. They will then offer to help both sides work it out. A business doesn't have to be a BBB member to use these services. Being accredited by the BBB is completely optional for businesses. In the past, some people worried that ratings were based on whether a business paid fees. But since 2010, a business's rating and its accreditation status are not connected.
How Businesses Get Rated
Before 2009, the BBB just rated companies as "satisfactory" or "unsatisfactory." On January 1, 2009, they changed to a new system. This system uses letter grades from A+ to F, like school grades. The BBB looks at 16 different things when giving a business a rating. You can see these factors on each business's profile.
When the new system started, businesses got extra points for being accredited. But some people, including the Attorney General of Connecticut, said this wasn't fair. They called it "pay to play" tactics. In response, the BBB changed its rating system in November 2010. They stopped giving points to businesses just for being members. They also started watching how their sales teams worked more closely.
If a business doesn't give the BBB basic information, like its size or when it started, it might get an "NR" rating. This means "not rated." If this happens, the BBB will say: "BBB does not have sufficient background information on this business."
A business can become "accredited" by the BBB if it meets the "BBB Standards for Trust." There are eight main standards that accredited businesses should follow:
- Build Trust: Have a good history in the marketplace.
- Advertise Honestly: Be truthful in all ads.
- Tell the Truth: Be open and honest.
- Be Transparent: Share clear information.
- Honor Promises: Do what you say you will do.
- Be Responsive: Deal with customer problems.
- Safeguard Privacy: Protect customer information.
- Embody Integrity: Always act with strong moral principles.
BBB in Canada
Working Together: US and Canada
On August 16, 2011, the BBB announced that its operations in the United States and Canada would work together more closely. This change was meant to make things easier for people buying and selling goods across the border.
Stephen A. Cox, who was the President and CEO of the BBB at the time, said that the U.S. and Canada are big trading partners. He explained that they are like "one North American marketplace." This new way of working together makes it simpler for people to check out businesses in either country. It also makes it easier to file a complaint or solve a problem. Canadian BBB leaders supported this idea. They felt that with new technology, it made sense to have one combined system.
Changes in Canada
At one point, the main BBB group took away the right to use the BBB name and logo from four Canadian offices. These offices were in Hamilton, Windsor, Montreal, and St. John's. The BBB said these offices were not meeting their standards.
The BBB then reorganized the areas these offices covered. For example, Hamilton was grouped with the Kitchener office. Windsor and other areas in Southwest Ontario became part of the London, Ontario, region.
Some of the affected Canadian offices changed their names or closed. The Hamilton, Ontario, BBB changed its name to the Canadian Businesses and Charity Bureau. The Montreal BBB became the Québec Commercial Certification Office. The BBB in St. John's, Newfoundland, closed down. However, other BBB offices have since taken over these areas. As of August 2022, there are 10 BBB offices that serve all of Canada.
See also
In Spanish: Better Business Bureau para niños
- Angie's List
- ConsumerAffairs
- ResellerRatings
- Sitejabber
- Trustpilot
