Frequently Asked Questions (FAQs)

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Below are Frequently Asked Questions of the Better Business Bureau (BBB).

 

What does it mean if I can't find a company's report?

It may be that the information we have on the company reflects a different name, address, or phone number. Try searching again, but put less information into the form. The company may also be located outside our service area. This BBB reports on companies in the Metropolitan Washington and Eastern Pennsylvania region.

If there is truly no report, the company is not a member of the BBB and we have received no complaints and few, if any, inquiries over the last three years. The search form will provide you an area to suggest we create a report on the company.

If all your funding comes from business, how can you be fair to the consumer?

The BBBs value to the business community is based on our neutrality. The purpose of the BBB system is not to act as an advocate for businesses or consumers, but to act as a mutually trusted intermediary to resolve disputes, to facilitate communication and to provide information on ethical business practices. Businesses have supported the BBB for over 80 years because an ethical marketplace is in everyone's best interest.

How can a Bureau be unbiased when it gets a complaint about a member?

The BBB's integrity is on the line every time we review and process a complaint. If a Bureau were to favor members over nonmembers in a complaint, such action would destroy our most valuable asset-- the public trust that we have held for over 80 years. Our members support us because they know we will act as a neutral third party, giving them an opportunity to learn of and respond to customer problems.

Why do I have to call a BBB long distance to get a report on a company?

There are more than 150 BBB offices in the U.S., Canada and Puerto Rico. Each office maintains files on companies headquartered in its service area, which may extend as far as a 200 mile radius. Local Bureaus have the most current information on companies from their complaint files, plus additional information gathered from various area sources such as local, state and federal government agencies. Bureaus also carry reports on companies that conduct business nationally. Call your local BBB first to see if it has the company report you are looking for.

Looking to the future, we recognize that consumers regularly do business with companies outside their immediate locales. On average, one in five callers to a BBB must be referred to another Bureau to obtain the information they are seeking. We are studying ways to improve accessibility to our 1.5 million reports.

I filed a complaint with the BBB. The company has not responded. Why can't the BBB make a business satisfy my complaint?

When a BBB receives a complaint, we present the complaint to the business and request its assistance in working out the problem with the unhappy customer. Most companies are grateful for the opportunity to resolve problems with their customers since it often means their patronage will be preserved.

BBB members agree to respond to consumer complaints presented by the BBB, and, if they do not, their membership is suspended. Most other companies, regardless of whether or not they are BBB members, also cooperate with the BBB.

However, some companies do not want to work with the Bureau and/or their customers to resolve complaints. Because the BBB is not a government or law enforcement agency, the Bureau cannot force a reply from a company; nor can it administer sanctions. However, a company's unwillingness to respond to the BBB or a customer will be noted in the company's reliability report the BBB provides to the public. In addition, the BBB will often work with Government agencies and/or the media to bring about further public awareness as it relates to unscrupulous business practices.

Why won't the BBB recommend a reputable company for me to deal with?

The basic policy of the BBB is to refrain from recommending or endorsing any company, product or service. This is done to ensure continued public trust in our fairness. The BBB will, however, provide, in its reliability reports, the kind of information needed to make an informed buying decision.

I called the BBB and was told that what I'm asking from the company is unreasonable. Isn't the BBB supposed to be on the consumer's side?

The BBB is neutral, working to advocate an ethical marketplace. It tries to seek a mutually satisfactory outcome in disputes between business and customers. Businesses and customers both have rights and responsibilities in the marketplace. The BBB tries to do what's right, rather than take sides.

The BBB is allowing a customer to file what I feel is an unfair complaint about my business. I'm a member of the BBB; aren't you supposed to be on my side?

No. While the BBB is supported by the dues paid by member firms, it remains impartial and does not take sides in disputes between customers and businesses, whether members or not.

Doesn't the BBB give credit reports?

The BBB reports on a firm's marketplace practices. It does not report either individual or business credit information. BBB reliability reports contain information about the nature of the business, its principal officers, a three-year summary of any complaints processed, and any government action involving the company's marketplace practices. Most Bureaus will also report a company's BBB membership in its public report and note whether it participates in any special BBB programs to improve customer satisfaction.

Isn't the BBB part of the government?

No. The BBB is a private, nonprofit organization developed to monitor and report marketplace activities to the public. BBBs are licensed by the Council of Better Business Bureaus, and governed by their own local Boards of Directors. Funding for BBB activities is primarily derived from local business support.

Isn't the BBB the same as a Chamber of Commerce?

No. Bureaus work closely with Chambers of Commerce in their communities, but have different purposes. Chambers are designed to PROMOTE their communities through economic development and other activities. Better Business Bureaus exist to PROTECT the citizens and businesses in the communities they serve, and to work to promote an ethical marketplace.

Can the BBB help me collect past due accounts?

Although some Bureaus have specialized programs to help resolve complaints that result in nonpayment of bills, BBBs do not operate as collection agencies for individuals or businesses.

Why can't the BBB stop rip-offs and scams?

Many times, the Bureau does. Although the BBB system does not have legal and policing powers, Bureaus provide information about marketplace fraud through scam reports to the public, media and government agencies.

Bureaus work closely with local, state and federal law enforcement agencies, providing them with valuable information on potentially fraudulent activities. Many times BBBs are the first organization to know about a developing scam and they alert authorities and the public. When a scam develops in one part of the country, the news travels quickly to the BBB offices in the U.S., Canada and Puerto Rico that, in turn, alert the public in their communities.

The public can help to stop rip-offs and scams by contacting the BBB before they do business with an unknown company and by notifying their Bureau of a potential scam. If it sounds too good to be true, it probably is.

Why doesn't the BBB report on private actions and small claims court actions against companies?

BBB reliability reports contain information on actions against companies and/or their principals brought by government agencies that allege violations of laws or regulations relevant to marketplace activities and that are relevant to consumer's buying decisions. Private civil actions between companies, or between companies and their customers, do not necessarily involve violations of law and involve private disputes that cannot fairly or meaningfully be reported to the public.

Doesn't the BBB report only on its members?

No. BBBs issue reports on members and non-members alike. BBBs, which as a matter of policy do not endorse or recommend any company, product or service, apply the same standards to reporting on companies, regardless of their BBB membership. BBB reports may, however, note the fact of a company's membership in the BBB.

Because BBB members must qualify for membership by adhering to certain standards, a company with an unsatisfactory report will be disqualified for membership. However, this does NOT mean that a company that is not a member has a negative report or would not qualify for membership. The BBB database contains thousands of reports on companies with satisfactory records, member and non-member alike.

What good is the BBB if it can't help me resolve my problem?

BBBs can help solve consumer/business problems. As private non-profit organizations, however, they cannot force a solution on parties to a dispute. Most BBBs do offer mediation and arbitration to help resolve consumer disputes, which can save both businesses and consumers the time and expense of going to court.

But Better Business Bureaus do a lot more than help settle disputes. Through the support of their local business membership, BBBs work for an ethical marketplace by maintaining standards for truthful advertising, investigating and exposing fraud against consumers and businesses and providing information to consumers before they purchase products and services.

What is the difference between mediation and arbitration?

In mediation, the disputing parties meet with a mediator who attempts to help the parties come to a mutually agreeable resolution to their dispute. The mediator will refrain from passing judgement or imposing a resolution on either party. In arbitration, the parties present their positions to an arbitrator, who then renders a decision on the matter. In mediation, you have more control over the outcome, but a resolution is not guaranteed. In arbitration, you are letting the arbitrator decide the outcome, but it is definitive.

Who are the mediators and arbitrators?

All of our volunteers have been trained and certified by the BBB. Mediators can be employees of the BBB, employees of the Council of Better Business Bureaus, or members of the general public. Our arbitrators are not employees in the BBB system, and come from various fields including law, academia, government, and professional dispute resolution.

Where and when are the hearings held?

Hearings are held at the Bureau's offices in Washington, Philadelphia, Lancaster, or Bethlehem. The hearings usually take about two hours and are scheduled during the Bureau's office hours between 8 AM and 5 PM. We make every effort to accommodate the schedules of both parties, the mediator or arbitrator, and the Bureau.

What is binding arbitration?

Binding arbitration means that the parties have agreed to abide by the arbitrator's decision regardless of the outcome. This is codified when the parties sign the agreement to arbitration. There is no BBB process for an appeal and in practice it is very difficult to get a court to overturn an arbitration decision.

Are mediation settlements and arbitration decisions legally binding?

Yes. If you reach a settlement in mediation, a settlement agreement will be drafted that binds both parties into their resolution. As indicated above, in binding arbitration the commitment occurs at the signing of the agreement to arbitrate. Both mediation settlements and arbitration decisions can be enforced in court if necessary.