Consumer Arbitration: The B.B.B. Approach

Abstract

Services have greater potential for generating consumer unhappiness than do physical goods, yet the marketing literature is sparse on dispute resolution in this area. This paper reviews the phenomena of consumer arbitration. The authors focus on the Council of Better Business Bureaus’ Auto Line, the largest national program of mediation/arbitration for automotive disputes, sponsored by participating automobile manufacturers, and the program’s extension into non-automotive products and services. The authors review consumerism and the history of arbitration. They discuss arbitration principles and procedures, program funding, and consumer satisfaction. Criticisms of the program are addressed, as are suggestions for additional work.