9 Things We Learned About Why Better Business Bureau Ratings Don’t Mean Much
In a lengthy nationwide investigation of Better Business Bureaus across the country, CNN interviewed businesses, consumers, and watchdogs, ultimately learning that how consumers see the organizations as something different, and a good grade from a local Bureau doesn’t guarantee that a business is trustworthy.
- The Better Business Bureau isn’t a government entity that serves as a consumer watchdog: you’ll need to contact your state attorney general for that.
- There isn’t one single Better Business Bureau covering the whole country: there’s more than 100, which together form the Council of Better Business Bureaus.
- The Council does have standards: the former BBB in Los Angeles was shut down after a blogger managed to gain accreditation for the terrorist group Hamas, a prank that was aired on ABC News’ “20/20” in 2011.
- Your local Better Business Bureau doesn’t claim to be a consumer watchdog: if you ask (and CNN did) they will claim to be a mediator between consumers and businesses when problems come up.
- Companies maintain their good rating if they’re able to “resolve” their complaints, but that doesn’t necessarily mean that the customer will be satisfied.
- Companies under investigation or actually charged with wrongdoing by government entities can maintain a pristine BBB rating: for example, settling with the federal government over allegedly filing illegal debt collection suits against members of the military didn’t affect the rating of Military Credit Services.
- Having active lawsuits from a customer doesn’t necessarily lower a business’s grade.
- Local BBBs earn most of their money from dues paid by members, and some former members report their ratings plummeting after they decided not to renew.
- Businesses claim that local BBBs put more effort in notifying members than non-members about complaints, when not responding to complaints tanks their rating.
Slammed by the government, A-rated by the Better Business Bureau [CNN]
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