Unless you’re a business owner, there’s a chance you’ve never heard of the Better Business Bureau. The BBB is an international non-profit that strives to create “an ethical marketplace where buyers and sellers trust each other.”
The BBB is a huge organization in the US, and small and large businesses alike endeavor to earn high ratings from them. According to the BBB’s website, a rating represents the organization’s “opinion of how the business is likely to interact with its customers.”
Savvy consumers should take BBB ratings into account when dealing with any business, but especially when working with smaller and not-yet established businesses.
How Are Businesses Rated?
The BBB ratings are based on several different factors:- The business’ complaint history with the BBB, taking into account the number of complaints, size of the business, how and when the complaints were settled, and more.
- The type of business and the length of time in business are also important elements of the BBB rating
- Transparent practices are an incredibly important factor when calculating a business’ rating, as transparency is one of the top priorities for consumers
- Failure to honor commitments to BBB can have a detrimental effect on a BBB rating for a business
- Licensing and government actions, such as failure to obtain necessary licenses or government actions that raise questions about the business’ ethics or reliability
- Advertising issues, such as untruthful or unethical advertising practices, can also have a negative impact on a BBB rating