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1998 Annual Inquiry and Complaint Summary for U.S. Better Business Bureaus

2/1/2000

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Arlington, VA February 1, 2000 - In 1998 consumers and businesses contacted Better Business Bureaus (BBBs) in the United States and Puerto Rico more than 25 million times, to get information or to file a complaint.

"This total represents a 25% increase over the 20 million instances of service our BBB system provided in 1997," said Ken Hunter, president and CEO of the Council of Better Business Bureaus. "The demand and need for BBB services has never been greater."

Most requests to the nation's 132 BBBs are for information about a specific company or charity, usually pre-purchase or pre-donation. Almost 14 million consumers and businesses contacted the BBB in 1998 to request reliability reports on businesses, an increase of more than 48% over the 9.4 million report requests received in 1997.

Customers of businesses across the country also rely on the BBB more than ever before for assistance in resolving disputes. In 1998 BBBs assisted with 2,761,929 complaints - a 35% increase over 1997's 2,044,048 complaints. BBB AUTO LINE, a special complaint handling program for the automobile industry, assisted 36,672 consumers in 1998, up from 35,200 in 1997.

Other contacts to the BBB were for counseling or general information on how to make wise purchasing, investment, or charity donation decisions. General information requests totaled close to 1.9 million in 1998.

Information and assistance was also provided to roughly 6.5 million visitors to the BBB system's central web sites (www.bbb.org and www.bbbonline.org) in 1998.

"These central sites provide easy hyperlinks to local BBB sites, with information specific to businesses and charities in their service areas. Every BBB has an informative web site, and more than a third of our BBBs have their report databases online now, further bolstering our system's efforts to promote an ethical marketplace through consumer and business education," Hunter said.

Following are rankings of the types of businesses that generate the most inquiries and complaints to Better Business Bureaus.

1998 RANKING OF TYPES OF BUSINESS BY BBB REPORT REQUESTS

Rank Type of Business Number of Report Requests
1. Contractors - General 398,922
2. Contractors - Roofing & Guttering 354,957
3. Financial - Mortgage & Escrow Companies 319,571
4. Business Opportunity/Work-at-Home Offers 265,995
5. Moving/Storage Companies 194,362
6. Automobile Dealers - Franchised (new & used sales) 181,738
7. Contractors - Home Construction/Remodeling 177,516
8. Auto Repair - Mechanical (except transmission) 172,996
9. Contractors - Home Builders 164,616
10. Contractors - Air Conditioning/Systems/Repair 146,420
11. Windows - Installation & Service 142,880
12. Contractors - Plumbing 121,794
13. Home Furnishings - Floor Covering - Carpet & Rug 103,021
14. Home Services - Carpet/Upholstery Cleaning 102,980
15. Credit - Counseling & Management Services 97,713

1998 RANKING OF TYPES OF BUSINESS BY COMPLAINTS PROCESSED

Rank Type of Business Number of Complaints Processed
1. Automobile Dealers - Franchised (new & used sales) 17,213
2. Contractors - General 12,630
3. Auto Repair - Mechanical (except transmission) 11,234
4. Home Furnishing Stores (except mattress, window, floor cov.) 7,850
5. Computers - Dealers 7,285
6. Shopping Services - Ordered Product Sales 7,025
7. Contractors - Roofing & Guttering 6,993
8. Services - Dry Cleaning/Laundry Companies 6,158
9. Automobile Dealers - Used Cars Only 5,869
10. Contractors - Home Builders 5,176
11. Home Furnishings - Floor Covering - Carpet & Rug 4,972
12. Moving/Storage Companies 4,922
13. Financial - Mortgage & Escrow Companies 4,099
14. Manufacturers - Products 3,971
15. Contractors - Home Construction/Remodeling 3,949

The CBBB 1998 Annual Inquiry and Complaint Summary offers data on 960 types of business, which are ranked by number of report requests and complaints to BBBs.

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