Why do bbb

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Last updated: April 8, 2026

Quick Answer: The query 'Why do bbb' appears to reference the Better Business Bureau (BBB), a nonprofit organization founded in 1912 that focuses on marketplace trust. The BBB operates by accrediting businesses that meet its standards and handling consumer complaints, with over 5.3 million complaints processed in 2022 alone. It matters because it helps consumers make informed decisions and promotes ethical business practices, though it has faced criticism for its accreditation fees and rating system.

Key Facts

Founded in 1912 in the United States
Processed over 5.3 million consumer complaints in 2022
Accredits businesses that pay fees and meet standards
Provides ratings from A+ to F based on various factors
Operates as a nonprofit organization with local chapters

Overview

The Better Business Bureau (BBB) is a nonprofit organization established in 1912 in the United States, originally to combat advertising fraud and promote ethical business practices. It was founded by business leaders who sought to create a self-regulatory body to enhance consumer trust in the marketplace. Over time, the BBB has expanded to include local chapters across North America, with its headquarters in Arlington, Virginia. Historically, it played a key role in early consumer protection efforts, such as during the 1920s when it addressed issues like false advertising and scams. Today, the BBB operates independently, funded primarily through membership fees from accredited businesses, and it maintains a database of business profiles and consumer reviews. Its mission centers on advancing marketplace trust by setting standards, facilitating dispute resolution, and providing education on consumer rights and business ethics.

How It Works

The BBB functions through a multi-step process involving accreditation, complaint handling, and rating systems. Businesses can apply for BBB accreditation by paying annual fees, which vary by size and location, and by agreeing to adhere to the BBB's Code of Business Practices, which includes honesty, transparency, and responsiveness to complaints. Once accredited, businesses are listed on the BBB website with profiles that include contact information, customer reviews, and a rating. The BBB rating, ranging from A+ to F, is calculated based on factors such as complaint history (e.g., number, severity, and resolution), time in business, licensing, and advertising issues. Consumers can file complaints through the BBB's online portal, and the BBB mediates between parties to seek resolution, with over 70% of complaints typically closed. Additionally, the BBB offers scam alerts and educational resources to help prevent fraud, leveraging its network of local offices to investigate and report on marketplace issues.

Why It Matters

The BBB matters because it significantly impacts consumer decision-making and business accountability in the marketplace. By providing ratings and complaint data, it helps over 200 million consumers annually make informed choices, reducing the risk of fraud and poor service. For businesses, BBB accreditation can enhance credibility and attract customers, as studies show that accredited businesses often see increased trust and sales. However, its importance is debated due to criticisms, such as the perception that ratings can be influenced by membership fees, leading to concerns about bias. Despite this, the BBB's role in dispute resolution has real-world effects, resolving millions of complaints and promoting ethical standards, which contributes to overall economic stability and consumer protection efforts in regions like the U.S. and Canada.