The History
In the early 20th Century, the business landscape in the United States was wild and wooly. There was little regulation and robber barons ran roughshod over smaller businesses and consumers alike.
In 1906, after the Pure Food and Drug Act was enacted, the government brought charges against a number of firms, including the Coca-Cola Company, for deceptive advertising.
During the trial, Coca-Cola's attorney said, "Why all advertising is exaggerated....Nobody really believes it." These infamous words may have helped pave the way for the "truth-in-advertising" movement.
Samuel C. Dobbs was sales manager of Coca-Cola at the time of the trial and later became its president. Dobbs became committed to the cause of truth in advertising. He was elected president of the Associated Advertising Clubs of America and began speaking out publicly on the subject.
In 1911, Dobbs helped in the adoption of the "Ten Commandments of Advertising" by his organization. In the following years several similar organizations were founded such as the National Better Business Commission and the National Association of Better Business Bureaus. These merged in 1946 to become the Association of Better Business Bureaus, which then merged into the Council of Better Business Bureaus in 1970.
Since it is not a governmental agency, the Better Business Bureau, or BBB, is confined to reporting bad, or allegedly bad, business practices to the public and the authorities. Despite this, most businesses have been happy to work with the BBB to resolve disputes, and find that membership in the BBB is reassuring to their customers.
How It Works
Companies pay a membership fee and must meet and maintain the standards of membership of the BBB. Members can then identify themselves as BBB members and use its logo.
Each local BBB is regulated by the overarching Council of the Better Business Bureaus. At the local level each bureau has a board of directors.
The BBB works with the Federal Trade Commission in identifying and reporting scams against and by businesses, thus protecting the public.
In addition, the BBB reviews local and national charities to help donors make wise decisions about charitable giving. In 2001, the National Charities Information Bureau and the Council of Better Business Bureaus Foundation merged to form the BBB Wise Giving Alliance. In 2003, the WGA published the Standards for Charitable Accountability.Other services that the BBB provides include business reliability reports, dispute resolution, and consumer and business education.
