What’s in a Grade?

grades2 150x150 Whats in a Grade?Better Business Bureau provided more than 124 million BBB Business Reviews in 2012; these reviews contain addresses and phone numbers, licensing information, complaint histories and letter grades ranging from “A+” to “F”—all of the stuff that savvy shoppers can use when choosing potential products or services.

BBB Business Review letter grades are:

  • BBB’s perception of a business, based on the information that it has acquired from voluntarily supplied questionnaires, consumer submissions and independent research.
  • A reasonable estimation of what average customers could expect based on company track records with BBB.

BBB Business Review letter grades are not:

  • BBB’s endorsement of a product or service.
  • A guarantee of a business’s performance.

How are letter grades calculated?

BBB Business Review ratings are calculated using 16 factors, where each factor carries a different weight:

1. Type of Business
2. Time in Business
3. Competency Licensing
4. Complaint Volume
5. Unanswered Complaints
6. Unresolved Complaints
7. Serious Complaints
8. Complaint Analysis
9. Complaint Resolution Delayed
10. Failure to Address Complaint Pattern
11. Government Action
12. Advertising Review
13. Background Information
14. Clear understanding of business
15. Mediation/arbitration
16. Revocation

For more information about BBB ratings, contact your local Better Business Bureau.

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About Adam Harkness

Adam Harkness is the Senior Editor & Social Media Manager for Better Business Bureau serving Alaska, Oregon and Western Washington, the largest BBB by geographical service area. Adam has a B.S. in communications from Northern Michigan University and an M.B.A. in marketing from University of Alaska Anchorage; his goal is educating young consumers to make smarter purchasing decisions.