A BBB grade represents how confident the BBB is that a business is operating in a trustworthy manner and is willing to make an effort to resolve any customer concerns that have been filed with the BBB. The rating system rates businesses on a letter-grade scale of A+ through F.
The reasoning the letter-grade system was introduced was due to the lack of insight provided by the previous system of only labeling businesses as either “satisfactory” or “unsatisfactory”. The grading system formula replaced the old method, and takes into account 17 different factors based on objective information and actual behavior incidences evaluated by the BBB. Factors in the grading process include business background, complaint history, BBB status history and previous business issues.
After the factors are reviewed by the BBB, businesses are given points for each factor, with each factor carrying a different weight. Typically, nearly 85 percent of the score is based off complaint history that has been evaluated by the BBC, such as total number of complaints, the severity of the complaints and how the business resolved them. Once all of the points are given, the range that the total score falls in corresponds with a specific letter.