BETTER BUSINESS BUREAU (BBB)
Back to GlossaryDefinition
A nonprofit organization that rates and accredits businesses on trust and performance.
Summary
The Better Business Bureau (BBB) is a well-known nonprofit organization that serves as a watchdog for consumers and businesses. Founded in 1912, the BBB helps consumers make informed decisions by providing business ratings (typically A+ to F), handling customer complaints, and offering business accreditation services. Businesses can earn BBB accreditation by meeting specific standards of trust, which includes honest advertising, transparency in business practices, and responsiveness to customer concerns. The BBB operates through local chapters across North America and maintains an online database where consumers can research businesses before making purchases or entering contracts.
Usage Context
Understanding the BBB is important when studying business ethics, consumer protection laws, marketing credibility, risk management, and corporate reputation. It's particularly relevant in discussions about self-regulation in business, consumer advocacy, and building customer trust.
Common Confusions
- Thinking the BBB is a government agency (it's actually a private nonprofit)
- Believing BBB ratings are legally binding or regulatory requirements
- Assuming all legitimate businesses must be BBB accredited
- Confusing BBB ratings with government safety certifications
- Thinking BBB membership guarantees business quality or prevents fraud
