The Better Business Bureau (BBB) is a private, nonprofit organization with a mission to promote and foster ethical relationships between businesses and the public. The BBB is best known for its complaint service, where dissatisfied consumers contact local BBB offices to resolve disputes with businesses. Established in 1912, the BBB today has 132 local bureaus and over 250,000 members nationwide. The national organization is the Council of Better Business Bureaus (CBBB). In 1997 the BBB received over 2 million complaints from American consumers. The bureau usually suggests consumers first contact companies directly. If they are not satisfied with the results, the BBB will intercede. The bureau has no power to force businesses to resolve disputes with consumers. Instead, it uses the fear of adverse publicity to pressure businesses to act promptly and ethically. The major BBB activities include providing
• business reliability reports
• dispute resolution
• truth in advertising
• consumer and business education
• charity review
Business reliability reports provide consumers with information about past complaints involving local companies. Local BBBs collect and disseminate information about unanswered questions and unresolved complaints. For consumers the fact that a company has unresolved disputes registered with the local BBB is a signal that there may be problems. The CBBB plans to reliability report information on-line. Dispute resolution services include buyer/ seller mediation and ARBITRATION services. The BBB provides specialized on-line complaint services for auto-related and movingand storage-related disputes. In addition it provides a customer assistance program. Along with auto and moving disputes, home-improvement and ordered products receive the greatest number of complaints. One of the early functions of the BBB was to improve truth in ADVERTISING. False and misleading advertising by a few firms in a market hurts the public perception of all businesses. The BBB’s Code of Advertising includes guidelines for ethical use of comparative pricing, savings claims, free offers, credit, distress sales, warranties, disclosures, bait and switch advertising, and even use of asterisks. The use of testimonials, superiority claims, contests, and extra charges, all issues that can lead to misrepresentation of products, are addressed by BBB codes. A fourth function of the BBB is to provide consumer and business education. Knowledge improves business practices and consumer satisfaction. The CBBB writes and produces numerous alerts and press releases designed to inform businesses and consumers. Many newspapers include consumer-alert columns with information disseminated by the BBB. Recently, with the rapid growth of INTERNET commerce, the BBB established a Code of Online Business Practices for members. The code calls for on-line businesses to post privacy policies, protect user’s security, and resolve consumer complaints promptly. In conjunction with the Philanthropic Advisory Service, the BBB provides information about nonprofit organizations, educating private and corporate donors.