The Better Business Bureau is a non-profit organization. Many people are under the impression that it is government run, but actually it is funded by local businesses. The goal of the Better Business Bureau is to ensure ethical practices in the marketplace and to act as a bridge between the consumer and businesses.
The Better Business Bureau first received funding in 1912. Since, then the BBB has become a well respected and recognized authority in the American marketplace. There are many benefits offered to businesses and consumers by the Better Business Bureau.
Membership in the Better Business Bureau is determined by general criteria used by the BBB in addition to any criteria provided by the local chapter the business is applying at. Membership in the Better Business Bureau is beneficial to the business because it proves to their clients that they met the BBB’s standards and are willing to follow their guidelines.
Consumers have access to free information about companies who are both members and non-members. In addition to these reports consumers also have the option of lodging a complaint against businesses. If the business is a member of the Better Business Bureau, the BBB may help them resolve these issues.
One thing that consumers must be aware of is that membership into the Better Business Bureau does cost money. Some businesses choose not to be a member of the BBB based on the cost and other issues. This does not always signal an unethical business. This also does not mean that the BBB will not have information on the business. It only means that they decided not to become a member.
It also worth noting that the Better Business Bureau is funded by these membership dues; however, they do state that their goal is to remain neutral. They claim to not favor businesses or consumers but to think of each situation individually. As long as they have been around, their name continues to be a seal of approval for many, so their claims are fairly reasonable.