Contrary to popular belief, the BBB is NOT a government organization. It is a private company.
Some online business people have had problems with them, because the BBB will often search gov't databases of newly registered businesses, then call the owner and insist they pay the $300-plus fee to be listed with the BBB, or suffer the "consequences" (a bad report). In fact, all the BBB can do in such a case is tell people who request information that no information is available and the business is not listed with them.
Unfortunately, so many people are under the impression that the BBB is a government agency that they take this information to mean the company is not recognized or legal as a business. This is what the BBB is counting on for its sales to member companies.
HOWEVER...the BBB is still a valuable organization for due diligence and research. Consumers can look into a company and find out how many claims have been filed against it, and whether the complaints were handled or not. This is useful, especially in internet businesses where unscrupulous characters lurk constantly. Just keep in mind that a business not listed with the BBB may not have anything wrong with it, but may have simply made the business decision to not pay the fees required for listing.
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