What Is Better Business Bureau?

Whether searching for an online background check service or a debt consolidation company, you may have come across the Better Business Bureau (BBB), or more specifically, the rating each business has with the organization.

So what exactly is the BBB, and how can their ratings be used to help you decide which businesses to trust?

Read on to learn more about the Better Business Bureau, how they operate, and what their ratings mean.


What Is The Better Business Bureau?

The Better Business Bureau (BBB) is a non-profit organization that offers information on businesses, startups, and organizations to the general public.

It also deals with customer complaints concerning businesses. This non-profit bureau has devised a rating system for enterprises on a level of A+ to F.

Each ranking is based on a set of factors pertaining to a company’s ethics and effectiveness.

Companies may get advice from the BBB on how to conduct themselves appropriately. The bureau also certifies businesses that fulfill its criteria and pay annual dues.

A company must operate with openness, be properly licensed, follow BBB advertising standards, and have no outstanding customer complaints in order to receive certification.

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How Does BBB Rating Work?

While assigning ratings, here’s what BBB looks for:

  • Business type: Businesses that do not follow the law and raise clamour in the marketplace are disqualified.
  • Transparency: BBB checks whether the business is providing transparency regarding its services, ownership, etc.
  • False advertising: If the business is using BBB’s name without their permission, then they are disqualified.
  • Complaint history: How many complaints has the business received as compared to its size, and have they resolved the complaints?
  • Not adhering to BBB policies: If a business fails to adhere to BBB’s commitment, then the rating drops.

BBB For Accredited vs. Nonaccredited Businesses

Companies can decide to become accredited by BBB, which requires them to support the vision and mission of BBB.

BBB offers information on accredited and nonaccredited businesses both. The benefit of BBB accreditation is that it is displayed more prominently on BBB’s website.

Apart from this, it also adds to the creditworthiness of the companies. BBB’s revenue comes from these accredited businesses.

BBB charges a few dollars from companies based on their size. It also charges a member’s fee to display their accreditation on the company’s website and on different print advertising.

Is BBB Accreditation Worth It?

Benefits of a BBB Rating

Benefits of a BBB Rating

There are many benefits to having a good rating with the Better Business Bureau. A high ranking may signify that a business is trustworthy, ethical, and transparent.

This can be helpful for consumers who are looking for a new business to patronize.

A company with a good BBB rating may also be more likely to resolve complaints satisfactorily.

Conversely, a low BBB ranking may indicate that a business is not operating ethically or effectively.

This could mean that the company is not resolving customer complaints, is not transparent about its business practices, or is engaging in other questionable behavior.

Consumers may want to avoid doing business with companies with poor BBB ratings.

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ELI5: What is the BBB (Better Business Bureau) and does it actually do anything useful?
by u/thatidiotguy in explainlikeimfive

How Are BBB Ratings Determined?

How Are BBB Ratings Determined

BBB ratings are determined by a variety of factors, including but not limited to:

  • The number of complaints filed against the company
  • How the company has responded to complaints
  • Whether the company is transparent about its business practices
  • The length of time the company has been in business

BBB ratings can be a helpful tool for consumers looking for information on businesses.

However, it’s important to remember that these ratings are not always accurate or up-to-date.

Sometimes, a business may have a poor rating due to an unresolved complaint, even if the issue has since been resolved.

The BBB’s criteria for awarding ratings may not always align with consumers’ expectations.

Better Business Bureau Facts

How Useful Are BBB Ratings?

BBB ratings can be a useful starting point when researching a new business. However, they should not be the only factor considered when making a decision.

It’s also important to read customer reviews, compare prices, and check for any available discounts or coupons.

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The Bottom Line

When considering a new business, it’s a good idea to check its Better Business Bureau rating.

A high ranking may signify that the company is trustworthy and ethical, while a low ranking could indicate that the company is not operating effectively or transparently.

However, make sure not to rely solely on BBB ratings when deciding. Research the business further by reading customer reviews and comparing prices.


What does the BBB do about complaints?

BBB helps in solving customer disputes related to customer service, sales, billings, contracts, refunds, warranties, etc.

Also, it even accepts complaints for companies that are not registered with BBB.

Does the BBB have any legal power?

BBB does not have legal powers, but it does work closely with the local, state, and federal governments to offer information on businesses and to avoid fraud.

Can BBB complaints hurt a business?

Although BBB does not hold power to take any legal actions, consumer complaints on their platform can tarnish a company’s image, so it is advisable to resolve any disputes that may have been filed against the concerned business.

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