Better Business Bureau
A private nonprofit federation that promotes marketplace trust through business accreditation, ratings, complaint handling, and dispute resolution.
Last updated August 21, 2026
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Overview
The Better Business Bureau (BBB) is a private nonprofit organization focused on advancing trust in commercial marketplaces. It is not a government agency, regulator, court, or law-enforcement body. Instead, it operates through a federation of independently incorporated local BBB organizations in the United States and Canada, coordinated by the International Association of Better Business Bureaus (IABBB) from Arlington, Virginia. The system uses industry self-regulation and consumer-facing information services to encourage businesses to follow published standards of marketplace conduct. The BBB traces its origins to early twentieth-century concerns about deceptive advertising and financial fraud. Local vigilance committees began appearing in the United States around 1912, following a period of intense public scrutiny of misleading commercial claims. The movement gradually developed into a network of local bureaus. A Minneapolis bureau was formed in 1914, and the National Vigilance Committee adopted the Better Business Bureau name in 1916. Over subsequent decades, the organization expanded from an advertising-focused watchdog into a broader information and dispute-resolution service. Its best-known public feature is the business rating system, which uses grades from A+ to F. Ratings are intended to express the BBB’s assessment of a company’s likelihood of acting in good faith and responding to customer concerns. Factors may include complaint history, responsiveness, transparency, advertising practices, time in business, and other information available to the relevant bureau. The BBB also offers accreditation to businesses that pay dues and agree to follow the BBB Code of Business Practices. Accredited businesses in good standing may display the BBB accreditation mark in marketing. The organization provides business profiles, complaint intake, mediation, conciliation, informal dispute settlement, and, in some circumstances, arbitration. Complaints are generally forwarded to the business, which is asked to respond within a defined period. Cases may be recorded as resolved, answered, unanswered, or unresolved. The BBB has no general legal power to compel a company to provide compensation or change its conduct; its influence comes from public reporting, voluntary participation, accreditation standards, and reputational pressure. The BBB’s funding model relies substantially on dues from accredited businesses. That structure has produced recurring criticism. Consumer advocates, journalists, and public officials have questioned whether a business-funded organization can rate companies impartially, particularly when local boards and leadership include business representatives. The most prominent controversy followed a 2010 investigation alleging that businesses could obtain improved ratings after paying accreditation fees. The organization subsequently removed accreditation from its rating calculation and announced reforms. Other controversies have involved local management failures, inconsistent complaint handling, executive compensation, call-center practices, and the expulsion or replacement of individual bureaus. The modern BBB presents itself as a North American trust infrastructure rather than merely a complaint bureau. Its services include searchable business profiles, accreditation, consumer education, advertising review, and alternative dispute resolution. The network has historically included dozens of autonomous local organizations and, according to BBB-reported figures cited in 2022, nearly 400,000 accredited businesses in North America. Its continuing relevance depends on maintaining credible separation between commercial funding and consumer-facing judgments while adapting its services to online commerce and cross-border transactions.
History
The BBB developed from early twentieth-century campaigns against deceptive advertising and fraudulent commercial claims. Its roots are commonly associated with the public reaction to misleading marketing practices, including scrutiny surrounding the 1906 federal case involving Coca-Cola. Advertising and business leaders subsequently supported local vigilance committees that investigated questionable promotions and encouraged truthful advertising. A national movement began taking shape in 1912, although the early organizations were decentralized and locally managed. The first local bureau identified in the BBB’s historical account was established in Minneapolis in 1914. The National Vigilance Committee adopted the Better Business Bureau name in 1916, while the New York affiliate was incorporated in 1922. During the 1920s, the network worked with business figures from financial, industrial, transportation, and legal sectors to combat advertising and mercantile fraud. A separate consumer department was established in 1939, reflecting a gradual shift toward direct public service. By the 1960s, local bureaus were handling large volumes of inquiries and increasingly focused on confusing advertising, service complaints, and business practices rather than only outright fraud. The Council of Better Business Bureaus was formed in 1970 to improve coordination among autonomous local offices. The network continued to grow, reaching approximately 150 bureaus in the early 1970s. Its expansion also exposed structural weaknesses: consumer advocates criticized uneven service quality, inconsistent complaint records, and the possibility that business-funded local boards might favor dues-paying companies. The BBB experimented with new access and revenue models in the 1990s. Some offices introduced fee-based telephone numbers, and the organization later voted to charge the public for certain services. During the same period, BBBOnline was created to address internet commerce. It offered website review and an online privacy seal for businesses that paid a fee and met stated criteria. These initiatives extended the BBB’s traditional trust-mark model into digital commerce. In 2007, the organization adopted a new visual identity and the slogan “Start With Trust,” emphasizing proactive consumer confidence rather than a purely reactive complaint service. In 2009, it introduced the A+ through F rating scale. The system was intended to synthesize complaint patterns, business responsiveness, transparency, advertising reliability, and related indicators. However, the rating model became the focus of major criticism in 2010 after a television investigation alleged that fabricated businesses could obtain favorable ratings after paying membership fees. The BBB acknowledged the credibility problem, removed accreditation from the points used to calculate ratings, and announced changes. Governance disputes continued at the local level. Individual bureaus in Florida, New Jersey, Canada, and Southern California faced closure, expulsion, replacement, or loss of trademark authorization after allegations or findings involving debt, management, reporting, accreditation, or complaint-handling failures. In 2011, the U.S. and Canadian operations were consolidated under a unified North American structure. The IABBB remains responsible for federation-wide standards, while local BBB organizations retain independent corporate identities and deliver many services directly. Today, the BBB combines business accreditation, searchable profiles, ratings, consumer complaint intake, mediation, arbitration in selected cases, education, and advertising-related guidance. It remains a private self-regulatory institution without general enforcement authority. Its central institutional challenge is balancing a mission of marketplace trust with dependence on dues from accredited businesses. The organization’s credibility therefore rests on transparent standards, consistent local administration, accurate public records, and visible separation between accreditation sales and consumer-facing ratings.
- 2024
Ottawa affiliate replaced
[1]The Ottawa-based bureau was expelled and a new BBB entity was established to serve the area.
- 2013
Southland affiliate expelled
[1]The largest local affiliate was removed from the federation over accreditation, reporting, and complaint-handling issues.
- 2012
Four Canadian affiliates lose trademark authorization
[1]The IABBB withdrew authorization from affiliates in Hamilton, Windsor, Montreal, and St. John’s for failing to meet operational and reporting standards.
- 2011
North American operations unified
[1]The U.S. and Canadian BBB structures were consolidated under a unified North American system.
- 2009
A+ to F ratings launched
[1]Letter grades replaced the former Satisfactory/Unsatisfactory classification system.
- 2007
Start With Trust rebrand
[1]The BBB introduced a new logo and the “Start With Trust” positioning to present itself as a proactive trust organization.
- 1990
BBBOnline introduced
[1]The organization expanded into online commerce with website review and privacy-seal services.
- 1970
Council of Better Business Bureaus formed
[1]A coordinating council was created to support the growing network of autonomous local bureaus.
- 1939
Consumer department created
[1]The organization established a dedicated consumer division as its work expanded beyond advertising investigations.
- 1916
National Vigilance Committee adopts BBB name
[1]The national organization began using the Better Business Bureau identity.
Products and positioning
A consumer-trust and business-ethics organization using accreditation, public information, self-regulation, and alternative dispute resolution to improve marketplace confidence.
Accreditation
BBB Accredited Business
A voluntary program for businesses that agree to follow the BBB Code of Business Practices and pay accreditation dues. Businesses in good standing may use the BBB accreditation mark. Accreditation is distinct from a government license and does not constitute a blanket endorsement of a company, product, or service.
Business information · 2009
BBB Business Rating
A public A+ through F rating intended to summarize the BBB’s confidence that a business operates in good faith and responds appropriately to customer concerns. The rating may reflect complaint history, responsiveness, transparency, advertising practices, and other business-profile information.
Business information
BBB Business Profile
A searchable record containing information about a business, including available contact details, complaint history, rating information, accreditation status, and responses or other disclosures where applicable.
Alternative dispute resolution
BBB Complaint and Dispute Resolution
A consumer-facing process that forwards complaints to businesses and may facilitate conciliation, mediation, informal settlement, or arbitration. The BBB can record outcomes and encourage responses, but it generally cannot compel a business to pay damages or comply with a proposed resolution.
Online trust service · 1990
BBBOnline
A late-1990s initiative that extended BBB review and trust-mark activity to internet businesses and websites. It included a privacy seal for qualifying businesses that paid an annual fee and met specified criteria.
Controversies
2015
Accreditation solicitation practices questioned
A CNN investigation reported that some local bureaus used third-party call centers associated with former BBB executives to solicit businesses for accreditation, renewing questions about commercial incentives and governance.
2010
Pay-for-play rating allegations
An ABC News 20/20 investigation reported that fabricated businesses could receive favorable ratings shortly after paying membership fees, raising concerns that accreditation payments influenced ratings. The BBB rejected the implication that its system should operate that way and removed accreditation from the rating calculation.
Marketing campaigns
- 2007Start With Trust
United States · Canada
A broad identity and communications initiative introduced a new logo and positioned the BBB as a proactive promoter of marketplace trust rather than only a reactive complaint office.
Outcome. The slogan became a prominent expression of the organization’s consumer-trust positioning.
Brand decisions
2011
Unify U.S. and Canadian operationsM&ABackground
Separate national structures created coordination challenges for a network handling cross-border businesses and complaints.
Action taken
The Council of Better Business Bureaus merged the U.S. and Canadian operations into a unified North American system.
Aftermath
The federation continued to rely on autonomous local organizations while using shared standards and coordination.
2010
Remove accreditation from rating calculationStrategyBackground
Media investigations alleged that companies could improve their ratings by paying accreditation fees.
Action taken
The organization announced that accreditation would no longer contribute points toward a business’s rating.
Aftermath
The change was intended to reduce perceived conflicts between accreditation revenue and consumer-facing ratings, although broader criticism of the funding model continued.
2009
Replace binary classifications with letter gradesStrategyBackground
The older Satisfactory/Unsatisfactory approach provided limited differentiation for consumers comparing businesses.
Action taken
The BBB introduced an A+ through F rating scale based on multiple business and complaint-related factors.
Aftermath
The system became the BBB’s signature public evaluation tool but attracted criticism over the treatment of accredited businesses.
Recent events
Assistance Home Care wins BBB TORCH Award[3]
Reported:
Assistance Home Care was recognized as a 2021 Better Business Bureau TORCH Award winner during a virtual ceremony on October 21.
BBB and Facebook partner on Shop Safe, Shop Smart campaign[4]
Reported:
Better Business Bureau and Facebook launched a holiday-season collaboration around the Shop Safe, Shop Smart campaign, offering consumers tips on how to identify scams and shop online safely. Facebook also became a founding member of the BBB Corporate Trust Council.
New York Sash wins BBB Torch Award for Ethics[5]
Reported:
New York Sash won the Better Business Bureau's Torch Award for Ethics in the mid-size category. The article says the award was announced Thursday.
Weekdays and relative dates follow the original report; their exact calendar dates have not been verified.
One Planet Group wins BBB Torch Award for Ethics[6]
Reported:
One Planet Group announced that it won the Better Business Bureau's Torch Award for Ethics in the San Francisco Bay Area and Northern Coastal California region.
BBB and Indeed partner to offer sponsored job credits[7]
Reported:
BBB partnered with Indeed to offer eligible new accounts in the United States and Canada a $200 Sponsored Job credit when they post a job. The partnership also includes employer and consumer education initiatives.
Fire Dawgs Junk Removal receives BBB Torch Award recognition[8]
Reported:
Fire Dawgs Junk Removal was named a 2020 Business of Integrity and received the Torch Award, recognizing its business ethics and integrity.
New American Funding receives International Torch Award for Ethics[9]
Reported:
New American Funding received the 2019 International Torch Award for Ethics from the Better Business Bureau serving the Pacific Southwest at a ceremony on December 16, 2019.
John Beal Roofing receives BBB TORCH Award[10]
Reported:
John Beal Roofing was named a 2019 Better Business Bureau TORCH Award winner for the BBB Serving Eastern & Southwest Missouri & Southern Illinois; winners were recognized at an October 24 reception and luncheon.
Sources10 sources
- 1Better Business Bureauen.wikipedia.org
- 2Official Better Business Bureau websitebbb.org
- 3Assistance Home Care 获得 BBB TORCH 奖pr.com
- 4BBB与Facebook合作推出Shop Safe, Shop Smart活动newswire.ca
- 5New York Sash 获得 BBB 道德火炬奖wibx950.com
- 6One Planet Group获得BBB道德火炬奖prnewswire.com
- 7BBB与Indeed合作提供赞助职位额度prnewswire.com
- 8Fire Dawgs Junk Removal获BBB Torch Award认可wishtv.com
- 9New American Funding获得国际道德火炬奖prnewswire.com
- 10John Beal Roofing获得BBB TORCH奖prnewswire.com
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