To participate in BBBOnLine Seal program, a company must pledge to offer dispute resolution through the BBB or another dispute resolution provider that meets BBB standards.

BBBOnLine Seal participants agree to the following:
"To agree to participate in binding arbitration under BBB Rules of Arbitration (Binding) if the consumer also agrees, or in non-binding informal dispute settlement (IDS) under the BBB Rules for IDS for unresolved consumer complaints involving Participant's products or services. Alternatively, a company may pre-commit to a dispute settlement process through a provider other than the BBB, if the BBB determines the dispute settlement process substantially complies with BBB consumer dispute resolution criteria."

An explanation of the arbitration process and the BBB Rules of Arbitration (Binding) are at www.bbb.org/complaints/bindarb.asp.

To view an explanation of the Informal Dispute Settlement process and the BBB Rules for IDS in word format, please click here .

Evaluating Whether Alternative Dispute Resolution Processes Meet BBB Standards
The BBBOnLine Seal program requires a participant to commit to dispute resolution. Under Section 3, Standards, of the BBBOnLine Seal Participant Agreement, the participant agrees as follows:

"To agree to participate in binding arbitration under BBB Rules of Arbitration (Binding) if the consumer also agrees, or in non-binding informal dispute settlement (IDS) under the BBB Rules for IDS for unresolved consumer complaints involving Participants products and services. Alternatively, Participant may pre-commit to a dispute settlement process through a provider other than the BBB, if the BBB determines the dispute settlement process substantially complies with Bureau consumer dispute resolution criteria."

What are the "BBB Criteria"?
For over 25 years, the BBB system has administered a consumer arbitration process that embodies a number of principles of fairness and equity. To determine whether a dispute settlement process other than the Better Business Bureau's substantially complies with Bureau consumer dispute resolution criteria, we consider the following:

1. Full disclosure of terms and conditions
   The Better Business Bureau system believes some information is so critical in making marketplace decisions that it must be provided at the point where purchasing decisions are made. Accordingly, pre-dispute, binding arbitration clauses must clearly and simply:

   Identify the types of disputes that are covered by the arbitration clause, which may not include claims for criminal or statutory violations.

   Identify the arbitration forum and provide contact information for the forum that can be used to obtain additional information about the forum.

   Clearly disclose the nature and amount of any fees consumers may have to pay in connection with the filing or administration of their case.

   Identify the standard that will be used as the basis for the arbitrator's decision (e.g. application of law or fairness).

   Advise consumers that the clause affects important legal rights, and that the consumer will not be able to go to court for disputes covered by the clause if the consumer signs the arbitration clause.

2. Requirement that consumer separately sign arbitration clause:
   In order to ensure that the consumer has knowingly chosen arbitration as the method of resolving disputes covered by the arbitration clause, binding arbitration clauses must contain the following:

   A separate signature line, appearing immediately below the arbitration clause, for the consumer to sign to acknowledge acceptance of the terms of the arbitration clause; and,

   A statement that the consumer will not be bound by the terms of the clause unless the consumer signs on the signature line.

3. The dispute resolution provider must provide for fair and impartial resolution. Here are some (but not necessarily all) of the key standards we look for in a dispute resolution process:
   The program provides independent and impartial program administration. Program administrators should be sufficiently insulated from all parties. At a minimum, this shall include program administrators that are independent and do not perform any conflicting responsibilities for any party.

   Program rules provide for independent and impartial decision-makers. The program should screen out any situations where there is an actual conflict of interest between the arbitrator and any party, or where reasonable persons could find that there is an appearance of conflict of interest between the arbitrator and any party.

   Program rules provide for a due process hearing. The program rules should provide for a process that permits all parties to submit relevant evidence and permits all parties to be informed of and have an opportunity to rebut any evidence presented by an opposing party.

   The costs for participation in the program are reasonable. This will require an analysis of the program's administrative costs and arbitrator fees paid by the consumer as well as consideration of any travel costs that would have to be paid by the consumer in order to participate in the program. The costs should be analyzed in relation to the amount of money in dispute.

   The program meets any applicable federal and/or state regulations. For dispute resolution processes that are incorporated into a written warranty for consumer products, for example, the program would have to comply with regulations set out in 16 C.F.R., Part 703. Since that federal regulation requires annual audits to determine such compliance, these should be reviewed.

   The company agrees to provide the BBB with appropriate feedback. A BBB member company using an alternate mechanism should voluntarily provide the BBB with case documents sufficient for the BBB to determine that the matter has been appropriately closed and that the process is operating consistent with its stated program rules and procedures.

BBBOnLine Seal applicants that wish to use an alternate dispute resolution provider in lieu of BBB Binding Arbitration or Informal Dispute Settlement are asked to submit a copy of the consumer contract that includes any arbitration clause with the BBBOnLine application, for review by BBBOnLine staff.