Learn About Company BBB Ratings and History

What Is the Better Business Bureau and How Did It Start

The Better Business Bureau, commonly known as the BBB, is a nonprofit organization that has been around since 1912. It was created to help protect consumers and promote ethical business practices. Today, there are BBB offices in all 50 U.S. states, plus Canada and Mexico. The organization operates as a network of local bureaus rather than one single national agency, though they all follow similar standards and guidelines.

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The BBB was founded because businesses operated with very few rules back in the early 1900s. Consumers had little information about whether a business was honest or if they would be scammed. The organization started as a way to collect and share information about which companies treated customers fairly and which ones engaged in deceptive practices. Local business leaders and newspaper publishers worked together to create these bureaus in their communities.

Over the past century, the BBB has grown significantly. It now maintains files on millions of businesses and nonprofits. The organization collects complaints from consumers, investigates disputes between customers and companies, and publishes ratings based on what they find. The BBB does not work for the government, but it operates similarly to a consumer protection watchdog group.

The BBB's main goal is to create trust between businesses and consumers. They do this by sharing information about how companies operate, whether they respond to complaints, and if they fix problems when customers report issues. The organization also works to educate consumers about how to avoid scams and fraud.

Practical Takeaway: Understanding that the BBB is an independent nonprofit organization, not a government agency, helps you understand what their ratings mean and how to use them when researching a company's background and customer service record.

How BBB Ratings Work and What the Grades Mean

The BBB uses a letter grade system to rate businesses: A+, A, A-, B+, B, B-, C+, C, C-, D+, D, D-, F, and NR (Not Rated). These grades are meant to show how well a business follows BBB standards and how they handle customer complaints. A rating of A+ is the highest possible grade, while F is the lowest. A company receives an NR rating when the BBB has little or no information about that business.

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Several factors influence a company's BBB rating. First, the BBB looks at how many complaints they have received and whether those complaints have been resolved. A business that receives many complaints but fixes the problems quickly may have a better rating than one with fewer complaints that ignores customers. Second, the BBB considers how long a business has been operating and whether they have a history of following industry standards. Third, they look at whether the company has been truthful in their advertising and whether they hold proper licenses and permits required in their industry.

The BBB also examines how a business responds to negative feedback. If a company takes complaints seriously, responds quickly, and tries to fix problems, their rating tends to be higher. If a business ignores complaints or refuses to address customer concerns, their rating will be lower. The BBB values responsiveness and a willingness to work toward solutions.

It is important to understand that BBB ratings are not like the five-star systems you might see on other websites. The BBB rating reflects a company's business practices and complaint history, not customer satisfaction in the traditional sense. Two businesses in the same industry might have very different ratings based on how they handle complaints and whether they follow fair business practices. A newer business with good practices might have a lower rating simply because they have not been in operation long enough for the BBB to gather extensive information.

Practical Takeaway: When looking at a BBB rating, pay attention not just to the letter grade but to the reasons behind it—the number of complaints, how they were resolved, and how the business responded to customer concerns.

Understanding BBB Complaints and Resolution Processes

When a consumer has a problem with a business, they can file a complaint with the BBB. The process typically starts with the consumer providing details about what happened, what the business promised, and what went wrong. The BBB then contacts the business and asks them to respond to the complaint within a certain timeframe, usually around 10 days. This gives the company a chance to explain their side of the story or offer to make things right.

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The BBB keeps records of all complaints it receives about a business. These complaints remain visible on the BBB's website for approximately three years, even if the issue was resolved. This history helps other consumers understand what problems others have experienced with that company. A business with a pattern of similar complaints might be more concerning than one with occasional isolated issues.

When a business and consumer cannot reach an agreement, the BBB may offer mediation services. Mediation means the BBB tries to help both sides find a solution that works for everyone. The BBB does not force either party to do anything, but they work as a neutral third party to encourage communication and problem-solving. In some cases, the BBB also offers arbitration, which is a more formal process where a neutral person hears both sides and makes a decision.

It is important to note that the BBB does not have legal authority to force a business to refund money or make repairs. Instead, they rely on a business's reputation and their desire to maintain good standing with the BBB. Many businesses work to resolve BBB complaints because a good rating is important for their business. However, some businesses choose not to engage with the BBB process, and the BBB can only document their lack of response.

The BBB publishes complaint information on their website, allowing anyone to search for a business and see what complaints have been filed against them. You can see how many complaints a business has received in the past three years, what those complaints were about, and whether they were resolved. You can also see how the business responded to the complaints.

Practical Takeaway: Before doing business with a company, search for them on the BBB website to see if there are any complaints filed against them and how the company handled those complaints when they were reported.

Accreditation and What It Means for a Business

Businesses that meet BBB standards and maintain good practices may become BBB Accredited businesses. Accreditation is not automatic—a business must request it and meet certain requirements. The main requirements include being in operation for at least one year, responding to all BBB inquiries, maintaining honesty and transparency in advertising, and agreeing to follow the BBB's Code of Business Practices.

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When a business becomes accredited, it means they have committed to following ethical business standards. The accredited business agrees to be transparent about their products or services, to honor their promises to customers, and to work toward resolving customer complaints. Accreditation also means the business has agreed to follow consumer protection laws and regulations in their industry.

An accredited business displays the BBB logo, which looks like a shield with the letters BBB inside. This logo signals to consumers that the business has met BBB standards. However, accreditation does not mean a business is perfect or that they never have complaints. Instead, it means the business has demonstrated a commitment to fair practices and is willing to be held accountable by the BBB.

Not all businesses pursue BBB accreditation. Some small or local businesses may not know about it, while others simply choose not to participate in the program. The absence of BBB accreditation does not necessarily mean a business is dishonest or problematic. It may simply mean they have not applied or do not see the value in the program. However, a business that is accredited has demonstrated they are willing to follow standards and be transparent about their practices.

The BBB charges accredited businesses a membership fee, which varies based on the size of the business and other factors. This fee supports the BBB's operations and helps them continue their work protecting consumers. Accredited businesses must also maintain their accreditation by continuing to meet BBB standards and renewing their membership regularly.

Practical Takeaway: If a business displays the BBB Accredited seal, it shows they have met certain standards and are willing to work with the BBB. However, you should still research their overall rating and complaint history before making a business decision.

How to Research a Business on the BBB Website

Searching for a business on the BBB website is straightforward and free. Start by going to www.bbb.org and using the search function. You can search by the business name, phone number, or website. The BBB will show you all registered businesses that match

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