The Online Business Bureau
Guaranteed Online Fraud Prevention or a Misleading Seal of Approval?
Oct 13, 2009
The Online Business Bureau, based in Washington, D.C., is battling the better-known Better Business Bureau for a larger share of the consumer information and business rating pie. Strong language on the Homepage and About Us page of their website boasts that the OBB is a less expensive, more valuable option for companies seeking third-party ratings and approval.
The Online Business Bureau on the Better Business Bureau
From the About Us page, the Online Business Bureau claims, "The Better Business Bureau charges companies hundreds of dollars each year to become members. The BBB is a private corporation. The BBB needs to collect dues from its members to pay for their large corporate overhead." The statement goes on to say, "The Online Business Bureau is a better alternative for consumers to investigate whether a business is legitimate. Our membership dues are much less than the BBB charges. As a result, many more businesses are willing to join our organization."
What Does a Seal of Approval Mean?
The Online Business Bureau charges companies a one-time membership initiation fee of $47.94, plus a recurring $14.97 monthly membership fee. Applicants receive an instant "green" rating and are given permission to the place the OBB Trusted Site seal on their website.
The Better Business Bureau Online, or BBBOnline, requires companies to submit a request for Better Business Bureau accreditation with the application for membership. Accreditation is based on adherence to the BBB Code of Business Practices, a code built on eight trust principles including honesty in advertising, transparency, responsiveness, and safeguarding consumer privacy. Companies must be in business at least 12 months before applying for accreditation. Membership rates vary by location. Approved applicants may place the BBB Accredited Business seal on their website.
What Do Business Ratings Mean to Consumers?
The Online Business Bureau rates member and non-member companies using three simple ratings. New members and those with no outstanding complaints receive a green rating, indicated by a green check mark icon. Any company in the OBB database without a paid membership receives a yellow rating; their listing at OBB features a yellow yield sign icon marked "Warning!" These companies do not have complaints filed against them, but have simply chosen not to use the service. A stop sign icon is indicative of a red rating. These companies have outstanding complaints with the Online Business Bureau.
The Better Business Bureau uses a complex formula based on 17 elements to rate each business on a scale from A+ to F. Among the factors they take into consideration:
- Known government actions against the company regarding marketplace activities
- The nature and number of consumer complaints files against the company
- Timely response and complaint resolution
- BBB Accreditation status
- Patterns of complaints and the resolution of the underlying cause
- Commitment to mediation and arbitration
Does a Seal of Approval Guarantee Online Fraud Protection?
The Better Business Bureau charges companies higher membership fees; however, they provide a much more in-depth consumer reporting service and therefore a more reliable rating. Companies cannot simply pay a fee to join and instantly display the highest rating, as with the Online Business Bureau. Consumers do not pay to use either the OBB or the BBB to find important information about a company.
Neither service guarantees online fraud protection. These companies can only make rating decisions based on the information available to them at the time. Consumers must investigate online businesses to ensure they are shopping and banking online with reputable companies. Perform a web search with the company name and the words "rip off," "scam," or "complaints" for more information.
See the article Best Debt Consolidation Companies for online fraud prevention tips and debt resolution assistance from the three most reputable companies.
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