The Better Business Bureau is a private nonprofit that publishes business profiles, letter grades, complaint records and scam alerts. It is not a government agency and has no power to force a company to do anything. Its letter grade is BBB’s opinion of how a business is likely to deal with customers, not a guarantee of product quality or service. Knowing what each part of a BBB profile measures, and what it leaves out, will help you use it well.
What the BBB is and what it is not
BBB describes itself as a nonprofit that helps people find businesses through free Business Profiles, ratings, reviews, complaint history, dispute assistance and scam alerts. BBB states that it is not a government agency and holds no regulatory power. Its official FAQ puts it this way: “BBB is not a government agency and holds no regulatory power.”
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BBB says that dues paid by Accredited Businesses fund its work. Local Better Business Bureaus serve communities in the United States and Canada, and each local bureau handles area-specific profiles, complaints, reviews and accreditation. The International Association of Better Business Bureaus coordinates the network and operates BBB.org.
In practical terms, this means a BBB profile is a record compiled by a private organization. It can tell you a lot about how a business has handled complaints and how it presents itself, but it is not a licence, a court ruling or a regulator’s finding.
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How to read a BBB rating
BBB ratings run from A+ to F. According to BBB’s rating page, a grade is built from seven elements:
- Complaint history
- Type of business
- Time in business
- Transparent business practices
- Failure to honor commitments to BBB
- Licensing information
- Advertising issues
BBB presents the approach as a 100-point score that is then converted into letter-grade bands. Customer reviews are excluded from the grade, so a flood of positive or negative reviews will not move it on its own.
Two details matter when you read a grade. First, the profile explains the most significant factors that raised or lowered the rating, so the reasons are more useful than the letter. Second, an NR (“No Rating”) designation means BBB says there is not enough information on file, or that the file is under review or being updated. NR is not a negative grade, but it also gives you no BBB assessment to rely on.
BBB itself says the rating is its opinion of how a business is likely to interact with customers. It is not a guarantee of reliability or performance.
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What the main BBB signals tell you
Readers often treat the letter grade as a single answer. It is more useful to read three separate signals, each of which answers a different question.
| Signal | What it tells you | What it does not tell you |
|---|---|---|
| Letter grade (A+ to F, or NR) | BBB’s opinion, based on the seven elements above, of how the business is likely to interact with customers | That the product is good, that you will be satisfied, or that the business is safe to pay |
| Accreditation status | Whether the business has joined BBB’s voluntary, fee-based accreditation program and agreed to its standards | The letter grade, and whether a non-accredited business is less trustworthy |
| Complaint history and business responses | How complaints were handled, what the business answered and how the complaint was closed | The full story of every dispute, since BBB only sees the complaints filed with it |
Accreditation: a voluntary standards signal
Accreditation is voluntary and fee-based. It is separate from the letter grade. BBB says a company can hold an A+ rating without being accredited, and that lack of accreditation by itself is not a mark against a business. Some businesses are not accredited simply because they have not applied.
BBB lists eight accreditation standards. Accredited businesses are expected to:
- Build trust
- Advertise honestly
- Tell the truth
- Be transparent
- Honor promises
- Be responsive
- Safeguard privacy
- Embody integrity
BBB says accredited businesses must continually meet these standards and that it monitors them. Fees vary based on factors including business size. BBB also states that fees do not buy a desired grade or remove complaints.
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Think of accreditation as evidence that a business has agreed to a set of standards and a service relationship with BBB. It is not proof that every customer will have a good experience with that business.
Complaints, reviews and scam reports are different tools
BBB’s three types of submissions serve different purposes. Choosing the right one matters, because each is handled differently.
Complaints
A BBB complaint is for a marketplace dispute in which you want BBB’s help resolving it. BBB forwards eligible submissions to the business and requests a response. BBB acts as an intermediary, and it cannot force a business to act.
Reviews
A review shares your opinion of a business without asking BBB to resolve a dispute. Reviews appear on the profile but do not change the letter grade.
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Scam reports
A scam report alerts others to suspicious or potentially fraudulent activity. If you believe you were targeted by fraud, a scam report is the right channel to warn others, but it is not the same as a dispute request.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to expect when you file a complaint
BBB’s complaint process page describes the following sequence. These are BBB’s published service targets and descriptions, not guaranteed outcomes.
- Submit the complaint with facts, not personal identifiers. Describe what happened, when, what you paid and what you asked the business to do. Do not include personally identifiable information such as account numbers or Social Security numbers.
- BBB processes the complaint. BBB typically processes a complaint within two business days.
- The business is asked to respond. BBB forwards the complaint to the business and asks for a response within 14 calendar days.
- The complaint is closed. BBB generally closes complaints in about 30 calendar days.
BBB says local dispute-resolution services vary by region, so the timing and the help available can differ depending on where you and the business are located.
Understanding complaint closure statuses
BBB publishes complaint closure statuses including Resolved, Answered, Unresolved, Unanswered and Unpursuable. Read the definitions on BBB’s current complaint page before drawing conclusions from any one label.
“Answered” deserves special attention. It means the business addressed the issues, but the consumer did not accept the response or did not report being satisfied. An Answered complaint should not be read as a Resolved one. Treat it as a business response that the customer disputed.
BBB also states that cooperation from non-accredited businesses is voluntary. BBB cannot compel any business to resolve a dispute, accredited or not.
Matters BBB generally does not handle
BBB lists categories it generally does not take, including:
- Employer and employee disputes
- Complaints about government agencies, except commercial buyer-seller relationships
- Matters already decided through a court, arbitration or settlement
- Businesses that are out of business
- Debt collection
- Buyer’s remorse
- Disputes solely about price dissatisfaction
Eligibility rules and local services can change. Check BBB’s current acceptance guidance and your local bureau’s details before you file.
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Privacy: what becomes public
BBB states that the exact text of a complaint is sent to the business. Closed complaint text may be publicly posted on the business’s profile. Assume that anything you write in a complaint could be read by others, and leave out details you would not want published.
Using BBB when you compare businesses
BBB works best as one input among several. A practical way to use it:
- Read the reasons behind the letter grade, not just the grade itself.
- Look at how complaints were closed and how the business responded, rather than counting complaints.
- Note accreditation separately, and do not treat its absence as a warning sign on its own.
- If the profile shows NR, do not assume the business is good or bad. Look for other information.
- Check the business’s license, reviews elsewhere and any other records relevant to your purchase.
- Remember that BBB’s grade is an opinion, not a guarantee.
Used this way, a BBB profile helps you see how a business has handled disputes in the past. It does not replace your own judgment about whether a particular purchase is right for you.
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