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Latest News

BBB Tip: How to research any business before you buy

Choosing a business to work with can sometimes feel overwhelming - but it doesn't have to be. Whether you're hiring a contractor, booking a service, or making a big purchase, a little research can go a long way in helping you feel confident about your decision. BBB has a few quick tips to help you get started with researching a business.

  • Search BBB.org. BBB reports on millions of businesses across North America. If the business has a BBB Business Profile, you can view the business's BBB rating and read any customer complaints or reviews. If you cannot find the business on BBB.org, you can call your local BBB and ask if they have any information about the business.
  • Check for a license. If the business you are researching is in an industry that requires a competency license, you can check with the relevant agency to verify that their license is current and hasn’t been revoked for misconduct.

  • Verify insurance policies. The company may also claim to be insured for the service it renders. If so, you can always call to verify with the insurance carrier that the policy is active and comprehensive.

  • Read reviews. Search the business’s name online and the word “reviews.” If there are customer reviews on a variety of sites, they will appear in your search results. Or, you may visit review sites and social media platforms directly and search for the business name. Looking at reviews across multiple sites is a good idea.

  • Contact your state Attorney General. The Attorney General’s office in your state may take business complaints. Although they may not divulge the details, they may tell you if any complaints have been received from customers of the business.

  • Ask for references. When businesses have been operating long enough to have satisfied customers, they are often willing to allow you to speak with individuals who have had good experiences with the business. Be reluctant if a company cannot provide references or does not want you to contact previous customers.

  • Make sure that there is a physical address and robust contact information. Avoid paying a business that does not clearly disclose how to reach them in the event that there are questions or a dispute arises. Something as simple as a verified physical address can make a difference.

  • Look for a registered entity. Some state, provincial and local governments require businesses to file basic information so that they can be tracked. The Secretary of State, Department of Corporations, and the Appraisal Districts, may be among the agencies that have a record of a business and can verify its existence.

  • Check the website for privacy and security protocols. Make sure that the company has a clearly posted privacy policy. Also, if the company takes any payment or personal information online, make sure that it has the appropriate security certificates. Look for https:// and a padlock icon near the URL.

  • Look for trustmarks online. There are many recognizable symbols of trust that will help you when vetting a company online. Look on the business’s website for the BBB Seal, digital or trade certifications, and similar indications that a third party has done the research on the business for you. These trustmarks are often hyperlinked to authenticate that the company has been vetted.  

  • Familiarize yourself with any terms and conditions. Always ask for a written contract for services or acquaint yourself with any website terms of use. In particular, look for refund policies or protocols for contacting the company in the event of a dispute.  

 

For more information

Read BBB's tips on identifying a fake website, how to spot a fake review, and how to spot a fake social media account.

Learn how to hire a reliable and trustworthy contractor.

Check out all of BBB's consumer resources.