Better Business Bureaus: A Comprehensive Guide to Their Legal Definition and Functions

Definition & Meaning

Better Business Bureaus (BBBs) are independent, non-profit organizations that provide information to help consumers make informed choices about businesses and charities. They do not have legal authority to enforce laws or impose penalties but play a crucial role in promoting ethical business practices. BBBs collect data on companies, mediate disputes, and offer resources for consumers to report and resolve complaints. Their reliability reports include details about a business's history, complaints, and any government actions related to marketplace practices.

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Real-world examples

Here are a couple of examples of abatement:

(hypothetical example) A consumer has a dispute with a local car dealership over a faulty vehicle. They file a complaint with the BBB, which mediates between the consumer and the dealership to reach a resolution. The dealership's BBB rating may influence the consumer's decision to pursue further action or accept the mediation outcome.

State-by-state differences

State Differences
California BBBs have specific regulations regarding advertising practices for members.
Texas Texas BBBs may have additional consumer protection laws that influence their operations.
New York New York has unique requirements for reporting on charitable organizations.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Consumer Protection Agency A government agency that enforces laws to protect consumers. BBBs are non-profit and do not have enforcement authority.
Chamber of Commerce A local organization that promotes business interests. BBBs focus on consumer protection and ethical business practices.

What to do if this term applies to you

If you have a complaint against a business, consider filing it with the BBB. They can provide mediation services to help resolve the issue. You can also check a business's BBB rating before making a purchase to ensure you are dealing with a reputable company. For more complex matters, consulting a legal professional may be necessary. Users can explore US Legal Forms for templates that may assist in drafting complaints or other legal documents.

Quick facts

  • Non-profit organization
  • Provides consumer information and dispute resolution
  • Membership dues support operations
  • Does not endorse businesses
  • Reports available online at

Key takeaways

Frequently asked questions

The BBB aims to promote ethical business practices and help consumers make informed choices.