by Robert Laws

Created on: September 05, 2009   Last Updated: September 13, 2009

The Better Business Bureau (BBB) is a non-profit organization whose stated vision is "An ethical marketplace where buyers and sellers can trust each other". Their vision, along with their mission and values, can be seen on their website (www.bbb.org). Their mission includes the statement that "We exist so consumers and businesses alike have an unbiased source to guide them on matters of trust".

With their clearly-stated goals, when are you most likely to turn to the BBB as a consumer? There are 2 occasions when this is most likely: (1) When you want to find out more about the reputation of a company before doing business with them. (2) When you have done business with a company and would like to file a complaint against them.

When checking on a company, what does the BBB provide? The BBB will provide consumers with access to a "Reliability Report". This report includes the following key elements: (a) Whether or not the company is BBB accredited, (b) The BBB rating Contact information and basic description of business, (c) A count of the number of complaints consumers have filed with the BBB, including basic categorization and status of complaints, (d) Any known government actions or advertising reviews.

This all sounds like useful information. So, if you see a company with an A+ rating, it must therefore be the best possible type of business and one to be trusted, right? Or, if you see a company with all complaints resolved, that must mean they are reasonable in dealing with customer issues, correct? Well, not necessarily. What you see with the BBB "Reliability Report" might not be quite as reliable as you would expect. Let me explain what I mean by this.

To understand what the BBB is presenting you with, you have to understand their processes. Let's start with the rating system.

The BBB rating system is a familiar system of values, going from A+ (the best rating) to F (the worst rating). The BBB describes this system as representing the degree of confidence they have in the business operating in a trustworthy manner and making "good faith" efforts to resolve customer complaints. They add the disclaimer, however, that "The rating is not a guarantee of a business' reliability or performance".

The BBB is secretive about the exact calculation of the rating, citing "a proprietary formula", but they provide the categories that are assessed and the range of points that can be awarded for each category.

It is important to note at this point that, unlike quality standards

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