BBB CHANGES ITS BUSINESS RATINGS
The BBB provides reliability reports on more than four million businesses. These reports are available online at www.fwbbb.org without charge. In the past when consumers consulted BBB reliability reports on companies, they found a simple rating scale of “satisfactory” or “unsatisfactory.” This month the BBB announced an improved version of the reliability report which would include a more detailed A+ through F rating which replaces the previous rating scale of satisfactory and unsatisfactory. The new reports will provide a more-detailed insight into a company’s track record based on time-tested standards, in-depth research, and the millions of consumer complaints filed with the BBB. The letter-grade concept was tested by several BBBs and later modified in accordance with recommendations made by a national BBB committee. The final product is aimed at making it easier for consumers to find dependable companies with which to do business.
The rating formula is based on 16 weighted factors, using objective information and actual incidences of a business’s behavior. Rating factors include the total volume of complaints filed against the business, the number of unanswered complaints, the number of unresolved complaints, the number of complaints with delayed resolution, and the number of serious complaints. The rating also takes into account any government action against the business, any advertising issues found by the BBB, and whether the company has honored any mediation or arbitration commitments. The rating also reflects whether the business has attained BBB Accredited Business status and whether the business has had its BBB Accreditation revoked. These last two factors reflect another change that took place recently in the way businesses affiliated with the BBB were designated. The old term of “BBB Member” has been replaced with “BBB Accredited Business.” The Accredited designation highlights the fact that the businesses have been evaluated by the BBB and have contractually agreed to uphold BBB’s high standards in dealing with consumers. The Accreditation designation and the new rating system will provide consumers with new resources in selecting trustworthy businesses.