2015€¦ · We are the neutral third party that can and does bring groups together to create...
Transcript of 2015€¦ · We are the neutral third party that can and does bring groups together to create...
Our Vision
An ethical marketplace where buyers and sellers
trust each other
Our MissionTo be the leader in advancing marketplace trust
• Setting standards for marketplace trust
• Encouraging and supporting best practices by engaging with and educating consumers and businesses
• Celebrating marketplace role models
• Calling out and addressing substandard marketplace behavior
• Creating a community of trustworthy businesses and charities
We Do This By
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Think of BBB as a collection of stories—the work we do is all connected—and one of the largest and most important links holding us all together is trust.
BBB API Data Program
BBB Scam Tracker
National Partners
BBB Cybersecurity
Advertising Self-Regulation
Programs
International Torch Awards
Dispute Resolution Programs
TRUST
Understanding the Consumer’s
Journey
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Looking back on my years as Chair of the Council of Better Business Bureaus, I feel proud of the work we have done together to engage with consumers and industry, and to create a network of businesses and charities that consumers trust.
We have, and are, continuously expanding our strategic partnerships that allow us to extend the BBB brand among new audiences and create greater awareness for the value of self-regulation and industry best practices.
The BBB’s work with the Federal Trade Commission is a perfect example of how our work transforms industry by creating standards that build and cultivate trustworthy behavior that can change substandard marketplace practices. We are the neutral third party that can and does bring groups together to create effective change.
In 2015, the Children’s Food and Beverage Advertising Initiative (CFBAI) celebrated its 10th anniversary—10 years that have transformed the children’s food advertising landscape and positively impacted the discussion of childhood obesity in the U.S. Due in part to the important work of CFBAI, the nutritional quality of foods advertised to children have improved.
The Children’s Advertising Review Unit (CARU) continues to be at the forefront of responsible practices in advertising to children. Each year, CARU reviews and evaluates hundreds of pieces of advertising directed at children under 12 years of age for truthfulness, accuracy, and appropriateness. Going even further, CARU collaborated with the Toy Industry Association to create a guide for parents on how to talk with their children about advertising with the goal of teaching them how to recognize an ad and understand what it says about a product.
The Online Interest-Based Advertising Accountability Program has become a prominent voice in leading compliance and self-regulation programs in the digital
advertising industry. Conducting outreach to businesses and privacy practitioners, and educating and enforcing industry standards that build trust between consumers and advertisers, we are continuing to lead in a fast-evolving space.
While my term as Chair has now ended, I will forever be proud and grateful to have had the opportunity to be part of an organization that is looking to shape a better future for consumers, businesses, and industries. BBB is at the forefront of developing innovative and effective programs that can and do change the lives of people everywhere.
Thank you for your continuing support of BBB and its mission to advance marketplace trust.
Best Regards,
Sharon Abrams Chair, Board of Directors Council of Better Business Bureaus
Letter from the Chairman
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I think of BBB as a collection of stories—the work we do is all connected—and one of the largest and most important links holding us all together is trust. From advertising review to cybersecurity, research shows that consumers depend on us to help them make choices and to promote trust in the marketplace.
Our programs have an amazing impact on the lives of countless people. For example, our holiday helper initiative launched during the busy holiday season in 2015 brought small businesses, consumers, and retailers together through social media to collectively spread the message of trust and smart shopping with local BBBs. The takeaway message of the BBB Holiday Helper campaign—we are better together.
BBB Scam Tracker continues to be enormously successful, and in 2015 this crowdsourced tool
received extensive media coverage and added new features that now allow users to search content and alerts as well as analyze data. The connections we are making with the Federal Trade Commission and law enforcement agencies will accelerate our ability to interact with and support consumers. We look forward to another incredible year for the program.
In 2015, we held two outreach events—one in Atlanta and one in San Francisco—which drew various people unconnected and unfamiliar with BBB. These events opened doors for new conversations, fresh insights, and opportunities to increase brand awareness among entrepreneurs and small businesses. Reaching out to companies to build and renew connections allows us to advance marketplace trust and engage in the future of business discussions. Our National Partner program is giving rise to emerging dialogue on privacy, the promises and perils of big data, and self-regulatory issues.
We are the leading voice for marketplace trust and we are working with industry leaders to develop innovative programs,
advocate for effective self-regulation, and set standards for trust in the marketplace.
In 2015, we worked with Nielsen to help us better understand the consumer journey and BBB’s evolving role. We have a better understanding of how purchasing decisions are made and how BBB, both our brand and our services, plays a part in the consumer’s world. We know that we bring value to not only consumers but the businesses that serve them. We are part of that continuing story of trust and we need to be persistent in our goals of advancing trust in every corner of the marketplace.
Our programs grew tremendously in 2015 and I look forward to expanding our work and engaging our partners even more in 2016.
Thank you for all of your support. All the best,
Mary E. Power President and CEO Council of Better Business Bureaus
Letter from the President
56.5%OF CANADIAN CONSUMERS
Are familiar with BBB.
73.1%OF U.S. CONSUMERS
76.9%OF CONSUMERS FAMILIAR WITH BBB
Are likely to complain or report a business to BBB if unhappy.
Are familiar with the BBB Accredation Seal and are more
likely to purchase when a business displays the Seal.
83.7%OF CANADIAN CONSUMERS
82.7%OF U.S. CONSUMERS
BBB REACH AND INFLUENCE
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Communication, Collaboration and Credibility certainly fits the theme of our 2015 Annual Report. We’ve embarked on great collaboration that continues to showcase the credibility of the BBB enterprise brand. Our national programs, local BBBs and other organizations have inter- twined to create dynamic programs, services and initiatives that work together to achieve our goal of advancing trust for all. Here are some of our 2015 highlights:
The Consumer’s Journey – Understanding the ProcessConsumers are at the center of all that BBB does. In 2015, the Council of Better Business Bureaus (CBBB) worked with Nielsen, a global, independent measurement and data company,
to conduct a study in the U.S. and Canada with 2,024 overall respondents to help us better understand the consumer’s journey and BBB’s role in that process. This study is part of CBBB’s Voice of the Customer program and will be repeated annually.
Taking this journey with Nielsen allots us many privileges as an organization. Not only do we better understand consumers and how they make purchasing decisions, but we are also better able to determine how the BBB brand, services and accreditation impacts those decisions. As we continue to take part in this survey, we will use the findings to better articulate our relevance and value to consumers and the businesses that serve them.
Building a More Trusted Marketplace through Collaboration
Our national programs, local BBBs and other organizations have
inter-twined to create dynamic programs, services and initiatives
that work together to achieve our goal of advancing trust for all.
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Sharing Our Data: BBB API Data Program
The BBB Application Programming Interface (API) was
designed to further BBB’s mission to be the leader in advancing marketplace trust.
With the BBB API, external organizations can seamlessly integrate BBB data into any website, application or platform. This powerful tool will enhance BBB brand relevance and amplify the impact of accreditation and ratings by placing BBB data on many different websites and apps where consumers interact with businesses.
The BBB API was released for beta testing in early 2015, and BBB selected three API partners to collaborate with: Electrolux, Porch.com and HomeAdvisor. These companies worked with BBB to test and improve the API and explore innovative ways to utilize BBB data.
> Electrolux uses BBB data in a management dashboard for real-time visibility into the performance of its network of more than 5,000 independent service providers.
> Porch.com uses BBB Ratings and accreditation data to help consumers find trustworthy home improvement professionals in its directory of 3.2 million businesses.
> HomeAdvisor uses BBB Accreditation data to help consumers find trustworthy home service providers in its directory of more than 100,000 pre-screened service professionals.
Once the beta testing phase is complete, the BBB API will be released to the general public. As more organizations start using the BBB API, the reach of the BBB brand and data will increase exponentially.
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Educating on Cybersecurity ThreatsCBBB partnered with the National Cyber Security Alliance (NCSA) on several initiatives designed to help small and mid-sized businesses in 2015. The two organizations worked closely to co-develop an educational curriculum entitled “5 Steps to Better Business Cybersecurity” based on the core concepts of the National Institute of Standards and Technology Cybersecurity Framework. The program was launched on a new BBB cybersecurity microsite and introduced by local BBBs across the U.S. during National Cybersecurity Awareness Month events that took place in October 2015. Officials from the Federal Trade Commission and the Department of Homeland Security addressed the 2015 BBB International Assembly held in Denver, Colorado to applaud this outreach and to invite the BBBs to partner with the federal government to educate small businesses in particular on fighting cyber threats and adopting security best practices.
Protecting the Community: BBB Scam TrackerCBBB and the BBB Institute for Marketplace Trust, the educational foundation of CBBB and a nonprofit 501(c)(3) organization, worked to develop and launch BBB Scam Tracker, a crowdsourced tool for users throughout the U.S. and Canada to report scams, and for BBB to collect and analyze scam data. The tool allows users to view scam details reported by others on an interactive map, and enhances BBB’s ability to create data-driven educational content and alerts based on current information. Scam reports can be sorted and searched to reveal trends over time and by victim location.
BBB Scam Tracker, which launched to all BBBs in the U.S. and Canada in 2015, has received extensive media attention, and will be a core component of efforts to expand BBBs work in this space. By the end of 2015, more than 12,000 scam reports had been filed. These reports will
aid in BBB’s investigations and collaboration with law enforcement agencies through the Federal Trade Commission’s Consumer Sentinel database. BBB Scam Tracker received more than 2,300 media mentions over a four month period, and was featured in Consumer Reports, CBS News, ABC World News Tonight and Woman’s Day.
Empowering Consumers with Resources to Shop Safely In 2015, BBB launched Digital IQ*, a new educational initiative designed to provide consumers with practical, real-world tips and tools to harness the power of the Internet to find the information, connections, and entertainment they want, safely and confidently.
The first set of Digital IQ educational resources was released in time for the start of the 2015 holiday shopping rush on Black Friday to give consumers information they need to shop safe and get the best deals online.
* Digital IQ is a BBB/corporate partnership. It was created with the support of Acxiom, Adobe, Merck and Nielsen.
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The strength of the Better Business Bureau is the local, independent non-profits that are licensed to serve as BBBs across North America. There are BBBs covering every corner of the U.S., Puerto Rico and the Caribbean territories, Mexico and all of Canada with the exception of French-speaking Quebec.
To operate as a BBB, an organization must meet nine BBB Performance and Accountability Standards, including 67 specific requirements relating to organizational elements such as finance, governance, technology, accreditation and other programs central to the mission. All BBBs undergo annual audits and compliance reviews to ensure they are meeting standards.
In 2015, the BBB system provided nearly 250 million direct-service interactions to businesses, charities and the general public. From conducting investigations to tracking scams and handling complaints, the BBB continues to serve as a primary resource for individuals seeking background information on businesses and charities.
Adding to the strength of the BBB system is the breadth of businesses—large and small— that support our mission of trust in the marketplace. In 2015, there were nearly 380,000 BBB Accredited Businesses.
Strengthening Our Impact
In 2015, the BBB system provided nearly 250 million
direct-service interactions to businesses, charities, and
the general public.
Total Instances of Services to Businesses, Charities & the General Public
249,460,579
BBB Business Review Inquiries
172,821,300
Views on Give.Org for Charity Reports and Tips
3,833,595
Complaints Handled
870,246
Advertising Reviews
8,260Investigations Conducted
11,087Published Customer Reviews
214,536
Media Coverage Mentions
243,000Impressions in Top 115 Markets
960 MillionGeneral Assistance, Counseling & Industry Information
71,649,576
The Year in Stats
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Scam Reports to BBB Scam Tracker
13,027
BBB AUTO LINE Cases
17,733
Mediations, Arbitrations & Dispute Settlement Hearings
21,219
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marketplace trust. Bringing recognition to these exceptional companies gives BBB an opportunity to shine a brighter light on better business.
In 2015, two companies were honored with the International Torch Award for Marketplace Excellence − given to businesses that demonstrate superior commitment to exceptional standards that benefit its customers, employees, suppliers, shareholders and surrounding communities. The recipients were Choice Comfort Services in Vandalia, Ohio and Briggs and Stratton Corporation located in Milwaukee, Wisconsin.
Four additional companies were honored with the BBB International Torch Award for Ethics. This award is presented to businesses in recognition of best practices in leadership character and organizational ethics. To be nominated, candidates must be winners of their local Torch Award for Ethics program, a category currently offered by 14 BBB Centers for Character
Investigations into Substandard Marketplace BehaviorIn 2015, local BBBs conducted more than 11,000 investigations that proactively identified “marketplace practices that are deceptive, misleading, unethical, or questionable.” Investigations are a required BBB practice, and the goal is voluntary correction of the practice by the business involved.
However, if self-regulation fails, BBB is obligated to inform the public about the problem so they can protect themselves. The media plays a key role in helping to do that, and one key ally in our efforts in 2015 has been David Segal, “The Haggler” consumer columnist at The New York Times. CBBB supplied Mr. Segal with information from BBB investigations that resulted in three different columns:
• BBB Serving Eastern Missouri and Southern
Illinois’s investigation into Real Ham Bones dog treats that can injure or kill pets
• BBB Cincinnati’s investigation into Classic Moving that holds homeowners’ goods hostage until they pony up more money
• BBB Serving Wisconsin’s investigation into SWEngines’ online sales of substandard auto replacement parts
BBB also received a nice mention in The Haggler’s end-of-year wrap up column, and there are several new columns in the works for 2016.
Honoring Outstanding Ethical Practices: BBB International Torch AwardsFor 19 years, CBBB has presented the BBB International Torch Awards to deserving businesses exhibiting outstanding ethical practices and contributing to building
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Ethics across North America. The recipients were: California Pools & Landscape of Chandler, Arizona, Dave’s Car Care, Inc. of Glendale, Arizona, ICC Restoration and Cleaning Services located in Woodbury, Minnesota, and KleinBank of Chaska, Minnesota.
Being recognized for business
ethics, first on the local level,
and now at the International
level, is extremely exciting
and gratifying for all of us
at ICC. This international
recognition further affirms
to us that rewards do come
from consistent hard work
and performance of good
business practices.
—ICC Restoration and Cleaning Services,
2015 BBB International Torch Award
for Ethics WinnerMedia Influence Grows In 2015, the BBB brand continued to grow on both traditional and social media platforms. Across the BBB system, we received more than 243,000 media mentions that represented a total of 960 million impressions (up from about 600 million impressions in 2014). Our social media influence grew substantially. Although harder to measure, it appears our impact through channels such as Facebook, Twitter, LinkedIn, Google+, Pinterest and YouTube increased significantly.
960 Millionimpressions
243,000media mentions
+48%
+10%
+22%
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CBBB is a recognized leader in developing and administering dispute resolution, industry self-regulation and online privacy programs. Each of these programs promotes trust and consumer confidence while encouraging sound industry self-regulation practices.
Dispute Resolution ProgramsBBB AUTO LINE is one of the longest-running, largest and highly regarded dispute resolution programs in the nation. Administered by CBBB and BBBs, BBB AUTO LINE helps businesses and consumers resolve automotive warranty and lemon law disputes in a timely, cost-effective manner that complies with all applicable laws and regulations. The majority of the automotive companies who participate in this program have maintained the partnership for over 25 years. The emphasis is to provide a free, fast and fair resolution program for consumers and businesses.
National Programs
Widespread Consumer Usage Since its inception in 1981, BBB AUTO LINE has served more than 2 million consumers. In 2015, BBB AUTO LINE received 17,733 consumer filings and emphasis is placed on reaching a mediated settlement between the parties.
Highly Rated and Regarded Independent audits submitted to the Federal Trade Commission each July continue to show high grades from consumers who utilize the program.
2015 BBB AUTO LINE HIGHLIGHTS
Meaningful Outcomes BBB AUTO LINE’s mediation and arbitration processes resulted in $50 million being returned to consumers through the mediation and arbitration processes (this amount does not include the cost of repairs to vehicles which were a result of case handling).
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BBB AUTO LINE is a leader incorporating best practices for dispute resolution programs in the areas of transparency, accessibility, fairness and due process. The independent audit
submitted to the FTC indicates BBB’s focus on best
practices and helps bring parties together and restore trust. BBB AUTO LINE
continues to place emphasis on the mediation process which is the best possible outcome for
both parties involved in a dispute. In 2015, the program administered 2,287 arbitrations.
BBB AUTO LINE’s arbitrator pool consists of over 800 trained and certified neutral evaluators to provide final decisions for cases not resolved through mediation. These evaluators, primarily attorneys or professionals with extensive dispute resolution experience, participate in mandatory annual refresher trainings each year and are deeply committed to providing a “fair” decision for the parties.
2015 BBB AUTO LINE Participants
ACURA/HONDA
AUDI/VOLKSWAGEN
ASTON MARTIN
BENTLEY/ROLLS
ROYCE
BMW/MINI COOPER
BMW MOTORCYCLES
FERRARI
FORD/LINCOLN
GENERAL MOTORS
HYUNDAI
INFINITI/NISSAN
JAGUAR/LAND ROVER
KIA
LAMBORGHINI
LOTUS
MASERATI
MAZDA
MERCEDES-BENZ
MOBILITY ENTURES, LLC
SUBARU
VOLVO
WINNEBAGO
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BBB Specialty Dispute Resolution ProgramsIn addition to serving automotive consumers, CBBB also serves both businesses and consumers by administering court-approved class action settlements as well as other dispute resolution programs to national companies that have chosen to include BBB dispute resolution into their customer agreements.
BBB EU Safe HarborSince 2000, CBBB has offered a trusted dispute resolution mechanism for U.S. companies processing personal data from Europe under the Safe Harbor Privacy Frameworks, concluded with the European Union in 2000 and with Switzerland in 2009. These arrangements have enabled U.S. businesses to receive personal data from Europe despite differences in European and U.S. privacy laws, by self-certifying their compliance with agreed upon privacy
principles, assuring European consumers and business partners that their data will be adequately protected, and by offering consumers an accessible, independent dispute resolution option for European privacy complaints.
BBB EU Safe Harbor maintained robust growth in 2015, and expanded its partnership with the Council of American Survey Research Organizations (CASRO), and provided trusted, independent complaint handling in support of CASRO’s dedicated Safe Harbor program for its own members.
In October 2015, after the European Court of Justice invalidated the U.S.-EU Safe Harbor Framework as a data transfer mechanism, the European Commission and the United States committed to negotiate a new and strengthened arrangement for transatlantic data flows by February 2016. BBB EU Safe
Harbor has continued to offer services to its participating companies and to EU consumers during this transition and expects to launch an updated program supporting the new arrangement in spring 2016.
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CBBB upholds marketplace trust with consumers and businesses through the development of self-regulation programs that set the standard for truthful and responsible advertising. These programs address concerns about food advertising to children, truth in advertising, responsible advertising to children, the collection of behavioral data online and the application of self-regulatory standards to digital advertising.
Children’s Food and Beverage Advertising Initiative (CFBAI)For 10 years, CFBAI, an advertising self-regulation program, has been transforming the children’s food advertising landscape and is an important part of the national conversation about childhood obesity. CFBAI’s 18 participants, all leading
consumer packaged goods companies and restaurants that represent the vast majority of child-directed food ads on TV, voluntarily commit to advertise to children only foods that meet strong nutrition standards. Some companies choose not to advertise to children, even if they have foods that meet CFBAI’s nutrition criteria.
In 2015, the nutritional quality of foods advertised to children continued to improve and credit can be given to CFBAI’s uniform nutrition criteria, which went into effect in 2014. CFBAI’s monitoring found that more than four out of five foods advertised by its participants on children’s TV contain at least a half-serving of fruit, vegetables, whole grains or dairy, a significant increase in such foods over prior years.
Advertising Self-Regulation
2015 CFBAI National Partners
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CFBAI also expanded its reach and increased engagement with companies, regulators, non-governmental organizations, and thought leaders in the U.S. and internationally during 2015.
• CFBAI welcomed its 18th participant, the American Licorice Company. It joined five other major candy companies in pledging to not advertise to children under age 12.
• CFBAI, BBB’s Children’s Advertising Review Unit and BBB of Charlotte, North Carolina exhibited at the 2015 National Parent Teacher Association Convention. The collaboration represented an enterprise-wide effort to increase engagement with families and millennials.
• CFBAI issued its 8th annual Report on Compliance and Progress and reported outstanding compliance among participants.
• CFBAI shared information about the value and benefits of self-regulation through comments filed with the U.S. Departments of Health & Human Services and Agriculture on the Report of the Dietary Guidelines Advisory Committee, the World Health Organization’s (WHO) Commission on Ending Childhood Obesity and the WHO’s Global Coordination Mechanism on Non-Communicable Diseases.
CFBAI’s success has expanded BBB’s role as a global leader in self-regulation, with CFBAI being emulated in more than 40 countries.
National Advertising Division (NAD)NAD decisions have provided guidance to the advertising industry for 45 years and it is that intellectual property that underpins the success of the self-regulatory system. NAD monitors national advertising for potentially deceptive or misleading claims made for goods and services.
In 2015, a working group representing key stakeholders within the American Bar Association publicly recognized the National Advertising Division process in an in-depth report issued in April 2015. The report included recommendations for streamlining the process, many of which have been or are being implemented. Overall, the working group “expresses its strong support for NAD and recognizes the value of a robust self-regulatory system in promoting public confidence in advertising and providing a user-friendly process for resolving advertising disputes.”
Children’s Advertising Review Unit (CARU)Established as an independent self-regulatory agency for the promotion of responsible advertising to children, today, CARU reviews advertising in all media directed to children under 12 years of age. CARU reviews and evaluates advertising for truthfulness, accuracy, and
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appropriateness and does so with sensitivity to children’s still-developing cognitive abilities.
In an effort to help parents understand the principles of advertising and to help them talk with their children about advertising, in 2015, CARU collaborated with the Toy Industry Association to produce a “Parents Guide to Advertising and Your Child” brochure. The guide was created to help parents talk with their children about advertising, as well as how to recognize an ad and understand what that ad says about a product.
The program also dedicated its resources in creating a public service announcement (PSA) titled “They Know Where Your Children Are” that addresses children’s online privacy concerns. The principal message of the PSA is to alert parents that their children often inadvertently leave traces of themselves while online, allowing for collection of their personal data, which could lead to identity theft. In order to avoid this risk, the PSA will direct parents to where they can find information on protecting their children when they are using the Internet. This PSA will be distributed in 2016.
Electronic Retailing Self-Regulation Program (ERSP)
Founded in 2004, ERSP has earned the respect of the direct-response industry through its fair and even-handed review of core truth and accuracy advertising claims made by electronic retailers.
In 2015, ERSP continued to increase its visibility with State Attorney Generals attending both the Republican Association of Attorney Generals Conference and the Conference of Western Attorney Generals. The program also hosted its Annual Summit in May, focusing on prevailing trends in the direct-response industry, and delivered presentations at the FTC’s Lead Generation Workshop and the American Bar Association’s Consumer Protection Conference.
Online Interest-Based Advertising Accountability Program (OBA)In five years of operation, OBA has grown to be the leading self-regulatory compliance program in the fast-evolving digital advertising industry. This program enforces the Digital Advertising Alliance’s Principles, the first set of industry standards to cover all Internet companies from Web publishers and ad networks to social media platforms and mobile apps. By giving consumers information about how personalized advertising works and the power to make choices about how their data is used for this type of digital marketing, these industry standards build trust between advertisers and consumers in the Internet marketplace.
In 2015, OBA continued its leadership in digital privacy self-regulation with compliance cases that covered innovative advertising technologies and formats; educational outreach to businesses and privacy practitioners on three continents; and expansion of OBA’s enforcement authority to the complicated world of mobile devices and applications.
Educational Outreach From roundtables at Facebook to participating in the Federal Trade Commission’s Cross-Device Tracking workshop and providing expert guidance to the Canadian and European Digital Advertising Alliance, OBA led the discussion on privacy in 2015.
Enforcement OBA released the results of 15 formal inquiries in 2015. Two of its most important cases grew out of OBA’s 2014 Interest-Based Native Ads Compliance Warning, which cautioned advertisers using popular “native advertising” formats that when they combined “native” with personalized targeting, consumers must have notice and choice just as they would with any other interest-based ad. OBA also released a large group of cases bringing into compliance websites that were allowing companies to collect data without giving the consumers notice and the opportunity to opt out.
Expansion OBA expanded its compliance coverage beyond desktop advertising to the rapidly growing world of mobile devices. To accomplish this work, OBA developed its own internal lab for monitoring and testing smartphone apps’ privacy practices. The military security contractor Kryptowire also donated to OBA access to its sophisticated testing equipment for only the cost of the hardware. With both internal and external labs at the ready, OBA began enforcement as scheduled on September 1, 2015, with its first mobile case decisions on track for the first quarter of 2016.
2015 OBA HIGHLIGHTS
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The National Partner Program represents an exclusive group of leading corporations, law firms, and nonprofit organizations looking to advance marketplace trust, influence industry behavior and engage with consumers, government regulators and peers on a national scale.
In the spring of 2015, CBBB embarked on two corporate engagement campaigns to proactively reach out to top companies in major city markets to build and renew connections with our National Partners and introduce new BBB CEOs and have a conversation on emerging business developments.
Major corporations, as well as small and mid-sized businesses, joined in a special conversation on evolving developments in privacy and business. Attendees received a briefing on some of the top privacy challenges for businesses, as well as the opportunities to engage with their customers directly on digital platforms where they could personalize their connections and messages. The conversation also covered online and mobile privacy regulatory and self-regulatory compliance issues, the promise and perils of big data, and the coming Internet of Things revolution.
National Partners
CBBB embarked on two corporate engagement campaigns
to proactively reach out to top companies in major city markets
to build and renew connections with our National Partners.
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3M Abbott Nutrition Products Division ADT Security Alticor † American Express Company American Licorice Company* Anheuser-Busch Companies AOL LLC Apple Inc. AT&T, Inc. Avon Products, Inc. Bayer Corporation BBDO BIC Corporation Big Heart Pet Brands Boston Beer Company Bridgestone Americas, Inc. Broadcast Music, Inc. Burger King Corporation Campbell Soup Company † Capital One Cargill Chase Bank USA N.A. Church & Dwight Co., Inc. Clearpoint Financial Solutions, Inc. Clif Bar & Company* The Clorox Company The Coca-Cola Company Colgate Palmolive Company Combe, Inc. ConAgra Foods, Inc. Coty Inc. The Dannon Company Del Monte Foods, Inc.* The Dial Corporation
Discover Financial Services DNA Dreamfields Company Dr. Bronner’s Magic Soaps Dr. Pepper Snapple Group Duracell Distributing, Inc. * Dyson, Inc. E.T. Browne Drug Company Electrolux Energizer Holdings Eric Mower + Associates * EuroPharma Inc. Euro-Pro Operating LLC Expedia, Inc. Fan Duel Ferrero USA, Inc. Ford Motor Company † FTD.com, Inc. Fujifilm Corporation General Mills † General Motors Georgia-Pacific Corporation GlaxoSmithKline plc Grey Group Hearst Corporation Henley Management Realty, Inc. The Hershey Company Hewlett Packard Company The Hillshire Brands Company Hormel Foods Corporation Hydro Aluminum Metal Products North America Inc. Hyundai Motor America I.L. Long Construction Company Immunotec Intersections, Inc.
J.M. Smucker Company Johns Manville Company Johnson & Johnson † Kao Brands Company Kellogg Company † Kimberly-Clark Corporation Kraft Heinz Company † LEGO Systems, Inc. Leo Burnett Worldwide, Inc. † L’Oréal USA Inc. Luxottica Manhattan Advertising & Media Law Mars, Inc. Mary Kay, Inc. Maserati North America Inc. MasterCard International Mazda North America Operation McDonald’s Corporation Mead Johnson Meijer, Inc. Merck Corporation Merisant US Michelin North America, Inc. Midas International Corporation Mission Pharmacal Company Mondelēz Global LLC The Nielsen Company Nestlé USA Nissan North America, Inc. Novartis Nu Skin Enterprises, Inc. Nuture, Inc. Ocean Spray Ogilvy & Mather Overstock.com
Pep Boys PepsiCo † Pfizer, Inc. Post Brands Priceline.com The Proctor & Gamble Company † Purdue Pharma Reckitt Benckiser LLC Rubin Postaer & Associates S.C. Johnson & Son, Inc. † Sergeant’s Pet Care Products, Inc. Shaklee Corporation Shell Oil Products US Shell Lubricants Shiseido Americas Corporation Specialty Fertilizer Products Subway Franchisee Advertising Trust Fund Sun Products Corporation Target Corporation Tempur-Pedic International, Inc. Tupperware Tyson Unilever USA, Inc. Verizon Communications Verizon Wireless Visa Wahl Clipper Corporation Weight Watchers Wester Union Weyerhaeuser Company Whirlpool Corporation †
CORPORATIONS
† Founding Partner, 1971
*New Partner 2015
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Arent Fox LLP Arnold & Porter LLP Bryan Cave LLP Coblentz, Patch, Duffy & Bass LLP Cramer-Krasselt Crowell & Moring LLP Davis & Gilbert LLP Davis Wright Tremaine LLP Debevoise & Plimpton LLP Dentons DLA Piper Dorsey and Whitney LLP Faegre Baker Daniels LLP Fenwick & West Foley & Lardner LLP Frankfurt Kurnit Klein & Selz Greenberg Traurig Hogan Lovells US LLP Husch Blackwell LLP Hyman Phelps & McNamara PC Katten Muchin Rosenman, LLP Keller and Heckman LLP Kelley Drye & Warren LLP Kilpatrick Townsend & Stockton LLP Kirkland and Ellis LLP K&L Gates LLP
Kramer Levin Naftalis & Frankel LLP Locke Lord LLP Loeb & Loeb LLP Manatt, Phelps & Phillips, LLP Maune Raichle Hartley French & Mudd, LLC Morrison & Foerster LLP Olsson, Frank & Weeda Patterson Belknap Webb & Tyler LLP Perkins Cole LLP Pillsbury Winthrop Shaw Pittman Proskauer Rose LLP Quarles & Brady LLP Reed Smith LLP Rumberger Kirk Sidley Austin LLP Simpson Thatcher & Bartlett LLP Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates Troutman Sanders Venable LLP Weil Gotshal & Manges Wiley Rein LLP Wilson Sonsini Goodrich & Rosati PC Winston & Strawn LLP
American Advertising Federation American Association of Advertising Agencies Association of National Advertisers Consumer Healthcare Products Association Council for Responsible Nutrition Council of American Survey Research Organizations (CASRO) Direct Selling Association Grocery Manufacturers Association National Confectioners Association* North American Insulation Manufacturers Association* Portable Lights of America Trade Organization * Toy Industry Association
LAW FIRMS ASSOCIATIONS
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Consolidated Statements of Financial
Position
Net Assets 2015 2014
Unrestricted $ 6,918,664 $ 5,075,328
Temporarily restricted 793,662 1,153,254
TOTAL NET ASSETS $ 7,712,326 $ 6,228,582
Total Liabilities and Net Assets 2015 2014
$ 11,880,781 $ 10,398,336
Assets 2015 2014
Cash and cash equivalents $ 6,457,587 $ 4,624,869
Investments 373,891 278,664
Accounts receivable, net 1,257,569 1,273,972
Prepaid expenses 590,880 359,933
Property & equipment, net 2,861,595 3,522,915
Funds held for service awards for Bureau officers 339,259 337,983
TOTAL ASSETS $ 11,880,781 $ 10,398,336
Liabilities and Net Assets 2015 2014
Accounts payable and accrued expenses $ 897,778 $ 631,703
Deferred revenue 1,636,298 1,775,803
Deferred rent and lease incentive 1,295,120 1,424,265
Funds held for service awards for Bureau officers 339,259 337,983
TOTAL LIABILITIES $ 4,168,455 $ 4,169,754
Year Ended December 31
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Consolidated Operations
Unrestricted Net Assets
Revenue 2015 2014
Dues $ 13,735,934 $ 9,662,715
Contracts 5,619,348 5,288,983
Subscriptions & License Fees 2,690,302 2,430,313
Grants & Contributions 385,406 1,477,330
Participation Fees 1,091,002 976,774
Filing Fees 769,749 1,286,500
Events 706,106 817,361
Other Program Revenue 62,806 85,035
Investment & Other Revenue 25,278 185,657
Net Assets Released from Restrictions 2,934,267 1,514,355
TOTAL UNRESTRICTED REVENUE $ 28,020,198 $ 23,725,023
Year Ended December 31
28
Consolidated Operations
Unrestricted Net Assets
Year Ended December 31
2015 2014
Change in Unrestricted Net Assets $ 1,843,336 $ 2,120,342
Expenses: Program Services 2015 2014
BBB Programs $ 6,161,310 $ 2,256,591
Self-Regulation 5,745,709 5,289,381
Dispute Resolution 3,599,734 3,199,173
Charity Reporting Activities 1,628,769 1,422,388
Marketplace Trust 704,831 748,150
TOTAL PROGRAM SERVICES $ 17,840,353 $ 12,915,683
Expenses: Supporting Services 2015 2014
Management & General $ 8,275,016 $ 8,626,221
Fundraising 61,493 62,777
TOTAL SUPPORTING SERVICES $ 8,336,509 $ 8,688,998
Total Expenses 2015 2014
$ 26,176,862 $ 21,604,681
29
Year Ended December 31
2015 2014
Grants & Contributions $ 2,574,675 $ 1,626,264
Net Assets Released from Restrictions (2,934,267) (1,514,355)
Consolidated Operations
Temporarily Restricted Net Assets 2015 2014
Change in Temporarily Restricted Net Assets $ (359,592) $ 111,909
2015 2014
Change in Net Assets $ 1,483,744 $ 2,232,251
Net Assets 2015 2014
Beginning of Year $ 6,228,582 $ 3,996,331
End of Year 7,712,326 6,228,582
Consolidated Operations
Net Assets
30
CHAIRGeorge K. H. Schell Chief Marketing Counsel The Coca-Cola Company
VICE CHAIRW. David Hubbard Vice President and Deputy General Counsel Verizon
SECRETARYKip Morse Representing the BBB Institute for Marketplace Trust President BBB of Central Ohio
TREASURERFred Elsberry CEO BBB of Metro Atlanta, Athens and NE Georgia
NATIONAL PARTNER DIRECTORSBrad Cansler Segment Controller - Home Hardware Duracell Jennifer Murillo Vice President of Brand Communications Discover Financial Services Ken K. Patel Vice President & General Counsel – Global Brand Legal and Global Beauty The Procter and Gamble Company MEMBER BUREAU DIRECTORS Fred Chown Owner Chown, Inc. Lynn Conner Owner/Licensee Hialeah Terrace Tom Eastman President Summit Security Company Shaila Kapur Director, Customer Experience Independence Blue Cross Joseph Schmelzle Senior Director UniGroup, Inc.
CBBB ENTITIES Paulette Maehara, CFRE, CAE Representing BBB Wise Giving Alliance President and CEO (ret.) Association of Fundraising Professionals Eric Mower Chairman and Chief Executive Officer Eric Mower + Associates BBB CEO DIRECTORS Kim States President and CEO BBB Serving Denver/Boulder Matthew Fehling President and CEO BBB of Central, Northern and Western Arizona Jane Driggs President and CEO BBB of Utah Rod Davis President and CEO BBB Serving Southeast Florida and the Caribbean Kevin Hinterberger President and CEO BBB Serving Central North Carolina
CBBB 2015 Board of Directors and Officers
31
EXTERNAL MEMBER DIRECTORS Scott Broetzmann President and CEO Customer Care Measurement and Consulting, LLC Kamal Nigam Engineering Director Google Colleen P. Rudio Founder and Owner Cascadia Business Development PUBLIC DIRECTOR Seth Kahan Executive Strategy Advisor Visionary Leadership CBBB EX-OFFICIO DIRECTORS Mary E. Power President and CEO Council of Better Business Bureaus, Inc. Richard Woods Vice President, General Counsel and Corporate Secretary Council of Better Business Bureaus, Inc.
CBBB STAFF OFFICERS Genie Barton Vice President and Director Online Interest-Based Advertising Accountability Program and Mobile Marketing Initiatives Beverly Baskin Senior Vice President, BBB Services David Diedrich Chief Operating Officer Bill Fanelli Chief Security Officer Bennie F. Johnson Chief Strategy Officer Wayne J. Keeley Vice President and Director Children’s Advertising Review Unit (CARU) Elaine D. Kolish Vice President and Director Children’s Food and Beverage Advertising Initiative
Andrea Levine Senior Vice President and Director National Advertising Division (NAD) Peter Marinello Vice President and Director Electronic Retailing Self-Regulation Program (ERSP) C. Lee Peeler CBBB Executive Vice President and President Advertising Self-Regulatory Council (ARSC) Steve Salter Vice President, Standards and Services Ben Steinberg Chief Information Officer H. Art Taylor President and CEO BBB Wise Giving Alliance Bennett Weiner Chief Operating Officer BBB Wise Giving Alliance
Council of Better Business Bureaus3033 Wilson Boulevard, Suite 600
Arlington, VA 22201bbb.org