What is BBB?

The Better Business Bureau (BBB), founded in 1912, is a corporation consisting of several private business franchises of local BBB organizations based in the United States and Canada, which work together through the Council of Better Business Bureaus (CBBB). The BBB goal is to foster a fair and effective marketplace, so that buyers and sellers can trust each other (“Start With Trust”). Many BBB services can be accessed online through their website.

BBBs gather and report information on business reliability, alert the public to frauds against consumers and businesses, provide information on ethical business practices, and act as mutually trusted intermediaries between consumers and businesses to resolve disputes. News media frequently turn to the CBBB and local BBBs as expert sources of news about scams and consumer issues.

To check BBB’s website visit: http://utah.bbb.org

To check out a business/charity organization ratings by BBB go to: http://utah.bbb.org/Find-Business-Reviews/

So what is BBB Rating System?

BBB assigns grades from A to F with pluses and minuses. A+ is the highest grade and F is the lowest. The grade represents BBB’s degree of confidence that the business is operating in a trustworthy manner and will make a good faith effort to resolve any customer concerns filled with BBB.

The rating is not a guarantee of a business’ reliability or performance, and readers should consider a business’ rating in addition to all other available information about the business.

BBB ratings are subject to change on a daily basis based on changes in a business’ BBB file.

BBB assigns ratings by evaluating businesses in the following categories:

• BBB experience with the industry in which the business operates
• The business’ length of time in operation
• Whether BBB has information that the business does not have required competency license
• Any known government actions against the business that are related to marketplace activities
• Any advertising issues found by BBB
• The number of complaints received by BBB from the business’ customers
• Whether the business has responded to complaints received by BBB
• Whether complaints have been resolved/failed to be resolved in a timely manner or the business has demonstrated it made a good faith effort to resolve them
• Whether the business has honored any commitments to BBB to arbitrate or mediate disputes and comply with arbitrator decisions and mediated settlements
• Whether BBB has sufficient background information and clear understanding of business
• Whether the business is a BBB Accredited Business
• Whether BBB Accreditation was revoked because the business failed to comply with agreed BBB standards

Accredited Businesses by BBB

Companies that are invited to join the BBB as Accredited Businesses must meet the BBB Standards for Trust and maintain all requirements of BBB Accreditation, including payment of annual dues. Businesses that agree to the BBB dispute resolution procedures may identify themselves as Accredited. If Accredited Businesses fail to meet the BBB’s Standards, their accreditation is revoked.

BBB Accredited Businesses make a commitment to conduct their business affairs with reliability and integrity, in accordance with BBB Standards and guidelines, and pay the BBB an annual tribute. Some argue that receiving payments from the businesses they report on creates a significant conflict of interest.

The Better Business Bureau name and torch logo can be used by accredited businesses. The logo use by accredited business is only allowed on printed material; to use the logo on a website the business needs to join the BB Online Accredited Business Seal program.

Criticism

The BBB does not recommend specific businesses to consumers, but simply supplies information. Regarding how a group funded by businesses can be fair to consumers, the bureau’s website states that its value to businesses depends on its neutrality.

BBBs have been accused of unduly protecting companies. The BBB responds by, at a minimum, notating complaints on the “Reliability Report” section of its web sites. If a branch does not act reasonably on behalf of a consumer, a complaint may be filed with the Federal Trade Commission.

Criticism on Biased Rating System

On June 1, 2009, BBB offices nationwide adopted an A-F ratings system. This grading system has been criticized for being biased in favor of companies that pay dues to BBB. The BBB of Central Illinois states on their website that only businesses which pay dues are eligible for an A+ rating. This seems to call into question the supposed neutrality of the BBB.

Instead of pronouncing a firm “satisfactory” or “unsatisfactory” in its reliability reports, the bureau is now issuing a new label, “accredited,” that any business can obtain by becoming a BBB member. Council CEO Steven Cole says the business will still have to meet certain standards, but a number of chapter presidents expressed concern that disturbed companies could use the label to hide problems.

Examples of Companies Rated:

BMW of Murray – A+

McDonald’s – A+

The Coca-Cola Company – B+

Nestle Waters USA – C

Mercedes-Benz USA Inc – F