LETTER-GRADE RATINGS SYSTEM
Background
BBB Reliability Reports™ are unbiased evaluations of a business’s marketplace performance. As the result of a dynamic new national reporting policy, BBB Reliability Reports™ now feature a rating system, which replaces the current “satisfactory” and “unsatisfactory” with a more comprehensive letter grade scale (A+ through F).
BBB’s letter-grade concept was first developed in 2004 by the BBB servicing Los Angeles, and has been tested by New Mexico, Santa Barbara, Asheville and West Palm Beach BBBs as well. That concept is the basis for the new reporting formula that makes it easier for consumers to find trustworthy businesses.
BBB ratings are different from many consumer review sites. BBB’s ratings are based on standards and use objective information and actual incidences of a business’s behavior that are verified and evaluated by BBB professionals. The ratings system is based on a computer-generated algorithm that takes into account more than a dozen different factors.
Grades from A to F with pluses and minuses are assigned automatically by application of the algorithm which objectively measure the same factors for every company in our data base. A+ is the highest grade and F is the lowest. In most cases, complaint history will drive a business’ letter-grade rating. Nearly 85% of the scoring will be determined by consumer-reported complaints that have been sent to the businesses, with a focus on the number of complaints, the severity of complaints, and how a business addresses complaints.
However, there are some overarching factors that will impact a business’ rating even if there have been no complaints to date. These include: government action that relates to customer relationships, continued advertising that does not comply with BBB Standards, competency license issues, length of time in business, and type of business.
Each Accredited Business is monitored for continuing adherence to accreditation standards. Accreditation is revoked if they are found to be non-compliant. The combination of BBB Accreditation status and BBB Reliability Reports™ is a valuable resource consumers can start with when they are looking for trustworthy businesses.