The Better Business Bureau provides three types of dispute resolution services for consumers who have had trouble with online merchants.
BBBOnline (http://www.bbbonline.org/) provides a database of reliability and privacy reports on millions of businesses to help consumers distinguish the reputable from the disreputable ones. BBBOnline maintains a "˜Safe Shopping Site' and a "˜Privacy Participant' site for these purposes. The "˜Safe Shopping Site' also provides a current list of companies that maintain membership in the BBB. This means that they meet the "standard reliability standards for ethical online business practices." Verified by the BBB as legitimate, these businesses have agreed to respond and resolve consumer complaints promptly using the dispute resolution services defined by the BBB. Currently, there are 21,923 online merchants registered with the BBB's reliability seal. Websites that carry the BBB's privacy seal provide online shoppers with explicitly posted policies detailing the use of a consumer's personal information. There are 631 websites registered with the BBB's privacy seal.
The BBB participates in dispute resolution only after the customer has failed to satisfactorily resolve a dispute with an online merchant. Consumers initiate the complaint with the BBB. Before filing a complaint on BBBOnline, a consumer should have the online merchant's name, location, and postal mailing address. The complaint must be a marketplace issue covering a service or product that is not in litigation; otherwise, the BBB will not handle the complaint. Once the consumer files the complaint, the BBB will then contact the merchant on the consumer's behalf and attempt to resolve the dispute through one of three means: conciliation, mediation, or arbitration. A consumer can also seek complaint counseling from the BBB to discuss alternative resolution methods. The BBB is neutral during the entire process and does not take any sides during a dispute resolution.
Conciliation involves the BBB's direct interaction with both the consumer and the merchant to provide a quick settlement of a dispute between an online merchant. The BBB contacts the offending online merchant directly by phone or mail and presents the consumer's complaint and views. The offending merchant is given the opportunity at that time to present his/her views. The consumer and merchant discuss the situation and jointly agree to a common resolution. Conciliation resolves most disputes.
The BBB also provides mediation services, also known as informal dispute resolution services (IDS). During mediation, the consumer and online merchant presents the opposing viewpoints of the dispute to a neutral third party officer who determines an appropriate course of action in resolving the dispute. The BBB chooses an unpaid community volunteer to serve as the neutral third party officer. The decision made the officer is non-binding, and attempts should be made by both parties to comply with the resolution chosen before seeking other remedies.
Arbitration is the final course of resolution available to consumers outside of litigation. During arbitration, a neutral party known as the arbitrator listens to both parties during a hearing. At the hearing, the consumer presents his/her argument and may direct questions to the online merchant. The merchant may do likewise. The arbitrator weighs the evidence presented by both parties and arrives at a fair and impartial decision. The arbitrator's decision is legally binding and cannot be further litigated in a court of law. Prior to the arbitration, the consumer is required to sign an arbitration clause acknowledging the consumer understands he/she has entered into arbitration to settle the dispute. The remedies offered during arbitration may include full or partial refunds of the price of the product or service, a promise to complete the service, or reimbursement of the cost of repairs towards any losses suffered by the consumer for the defective product.
In many cases, the dispute resolution services offered by the Better Business Bureau are sufficient to remedy most online disputes. Whatever the outcome of the dispute, the BBB maintains a database of complaints. The online database gives consumers an added tool to fight against dishonest businesses. Even though there is no regulation to Internet commerce sites, the BBB serves a policing presence to keep the integrity and honesty of online merchants in check.
