Better Business Bureau
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| Founded | 1912 |
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| Area served | United States, Canada |
| Focus | Consumer Protection |
| Website | www.bbb.org |
The Better Business Bureau (BBB), founded in 1912, is not a government agency, but a network 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.
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[edit] History
"Medical quackery and the promotions of nostrums and worthless drugs were among the most prominent abuses which led to the establishment of formal self-regulation in business and, in turn, to the creation of the NBBB."[1]
BBB's inception has been credited to the court case initiated by the government against a number of firms, including the Coca-Cola Company, in 1906, after the Pure Food and Drug Act had been become law. The trial found the legal charges to be unfounded, and as a result Samuel Candler Dobbs, sales manager of Coca-Cola and later its president, took up the cause of truth in advertising.
In 1909, 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.
[edit] Structure
Local BBBs are independently governed by their own boards of directors, but must meet international BBB requirements, which are monitored and enforced by the CBBB on a continuous basis. The CBBB is governed by leaders of local BBBs, as well as by senior executives from major American corporations, and community leaders such as academics and legal experts.
Each BBB entity is run separately. 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.
[edit] Core services
BBB core services include:
- Business Reliability Reports
- Fraud Prevention
- Complaints and Dispute Resolution
- Truth-in-Advertising
- Consumer and Business Education
- Wise Giving Charity Reports
- Charity Accountability and Effectiveness Education
[edit] Business Reliability
Companies that are invited to join the BBB as Accredited Businesses must meet the BBB Standards for Trust [2]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 will be revoked.
BBB Accredited Businesses make a commitment to conduct their business affairs with reliability and integrity, in accordance with BBB Standards and guidelines.
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 BBOnline Accredited Business Seal program.
[edit] Dispute Resolution Procedures
The organizations dispute resolution procedures are established by the Council of the 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. The BBB acts as a neutral party when providing dispute resolution services.
Complaints about the practice of professions like medicine, law and accounting are usually not handled by the BBB and are referred to associations regulating those professions.
[edit] Truth in Advertising
The National Advertising Division of the CBBB (NAD) reviews national advertising for truthfulness and accuracy, and fosters public confidence in advertising accuracy. Its policies and procedures are established by the National Advertising Review Council (NARC). The Children's Advertising Review Unit (CARU) of this BBB entity reviews advertising directed to children. Its activities include the Children's Food and Beverage Advertising Initiative, a voluntary self-regulation program undertaken in cooperation with major corporations. The Initiative is designed to shift the mix of advertising messaging to children to encourage healthier dietary choices and healthy lifestyles.
[edit] Wise Giving Alliance
The BBB's Wise Giving Alliance reviews and reports on national charities, using the 20 BBB Wise Giving Alliance Standards for Charity Accountability. Detailed national charity reports may be found on the BBB website. Many local BBBs also review charities in their regions and publish detailed charity reports on their local websites.
[edit] Website Resources
BBB websites offer video content, online resources, and educational tools for consumers. Each local BBB offers a unique assortment of educational resources, tailored to meet the needs of its community. The organization also has BBB channel on YouTube, news alerts featured on individual BBB websites, and BBB videos.
[edit] Criticisms
The BBB does not recommend specific businesses to consumers, but simply supplies information. [2]
How can the BBB be impartial when handling disputes and complaints against businesses when BBBs are primarily supported by dues from its accredited businesses? In response, the BBB claims its value to the business community is based on its neutrality [2].
BBBs have been accused of unduly protecting companies.[3]. The BBB responds by, at a minimum, notating complaints on the "Reliability Report" section of its web sites.[4] If a branch does not act reasonably on behalf of a consumer, a complaint may be filed with the Federal Trade Commission (FTC).
[edit] References
- ^ Ladimer, Irving "The Health Advertising Program of the National Better Business Bureau" A.J.P.H. Vol. 55, No. 8. Aug. 1965
- ^ a b c "BBB: Standards of Trust". BBB. http://us.bbb.org/WWWRoot/SitePage.aspx?site=113&id=cb5bd362-15fb-4d74-82e6-85de604c7982. Retrieved on 2009-02-03.
- ^ . http://www.ripoffreport.com/reports/0/001/ripoff0001343.htm Rip-off Report: Better Business Bureau or Buyer Better Beware? BBB Nationwide Alert! THE FOX GUARDING THE HEN HOUSE]
- ^ "2005 Annual Report of the Council of Better Business Bureaus". Council of Better Business Bureaus. http://us.bbb.org/WWWRoot/storage/0/Shared%20Documents/2005AnnualReport_web.pdf. Retrieved on 2009-01-14.
