Better Business Bureau
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Better Business Bureau

The Better Business Bureau (BBB) is an American private, 501(c)(6) nonprofit organization founded in 1912. BBB's self-described mission is to focus on advancing marketplace trust, consisting of 92 independently incorporated local BBB organizations in the United States and Canada, coordinated under the International Association of Better Business Bureaus (IABBB) in Arlington, Virginia.

The Better Business Bureau is not affiliated with any governmental agency. Businesses that affiliate with BBB and adhere to its standards do so through industry self-regulation. To avoid bias, BBB's policy is to refrain from recommending or endorsing any specific business, product or service even though they still advocate for business interests.

The BBB rating system uses an A+ through F letter-grade scale. The grades represent BBB's degree of confidence that the business is operating in good faith and will resolve customer concerns filed with BBB. BBB's ratings are explained on its Ratings Overview page.

According to BBB, nearly 400,000 local businesses in North America were accredited as of July 2022. BBB prospects successfully vetted businesses to become dues-paying 'accredited businesses' that pledge and continue to adhere to the BBB Code of Business Practices. In return, BBB allows accredited businesses in good standing to use its trademarked logo in marketing materials.

The Better Business Bureau traces its roots to the U.S. government's 1906 lawsuit United States v. Forty Barrels and Twenty Kegs of Coca-Cola, which ignited widespread scrutiny of misleading advertising practices. In response to growing public concern, local "vigilance committees" began forming across the United States by 1912 to monitor and discourage unethical business behavior. These groups were largely driven by figures such as Samuel Candler Dobbs of the American Advertising Federation, who had been advocating for truth in advertising since at least 1911. Its original mission was to investigate financial fraud relating to advertisements.

The first local Better Business Bureau was formed in Minneapolis, Minnesota in 1914. The National Vigilance Committee officially became the Better Business Bureau in 1916. The Better Business Bureau's New York affiliate was officially incorporated in 1922. In 1927, the organization announced the formation of an auxiliary committee to cooperate with the bureau in suppressing financial and mercantile fraud. It consisted of 27 businessmen in the financial, industrial, railroad, and legal industries. A consumer department was formed as a separate division in 1939.

By 1967, the New York City bureau was handling 260,000 inquiries and requests for service each year. Around this time, its 130 local bureaus began to focus less on fraud and more toward misleading or confusing advertising and complaints about service. The Council of Better Business Bureaus was formed in 1970 to help the national organization coordinate between its many local offices. One of its first efforts was to improve the telephone systems at the local level. By 1971, there were 150 autonomous bureaus around the country.

In 1983, the New York bureau boasted 6,000 members, over 100 full and part-time staffers, and a $1.45 million annual budget as the largest affiliate in the country. It had five branches located in Newark, Paramus, White Plains, Wappingers Falls, and Farmingdale. In 1987, the branch covering Los Angeles and Orange counties closed down. It was replaced six months later by the Southland bureau, a merger of the closed affiliate and the San Bernardino county office. There were 180 local bureaus handling about 10.7 million inquiries in 1989. In the 1991, some bureaus introduced a 900 number that would incur a cost for those wishing to log a complaint or inquire about a business. In 1996, the BBB voted in favor of charging fees to the public for its services. In the late 1990s, It also introduced BBBOnline, a subsidiary tasked with vetting internet-based businesses and their websites. A privacy seal was made available for those who paid an annual fee and met certain criteria.

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