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      AN INVESTIGATIVE NEWS SERIES
    ON THE STANDARDS AND PRACTICES   
    OF THE BETTER BUSINESS BUREAU

         START WITH TRUTH


 

BUSINESS
 BBB GRADE
 COMPLAINTS
BUSINESS
 BBB GRADE
 COMPLAINTS
Google
 D
 423
 Google Better Business Bureau Grade
 Yahoo!
 A
 1228
Apple
 B
 1450
 BBB Gives Microsoft an A+ Microsoft
 A+
 2433
Disney Land Resort
 F
 30
 BBB grades Walt Disney Walt Disney World
 B
 102
Los Angeles Times
 F
 269
 BBB grades the Los Angeles Times
 San Francisco Chronicle
 A+
 57
Orange County Register
 C
 54
 Orange County Register Grades C with BBB
 Detroit Free Press
 A+
 21
Philadelphia Inquirer
 C
 46
 BBB grades Philadelphia Inquirer C
 Washington Post
 A+
 57
Cleveland Plain Dealer
 C-
 0
 BBB Gives Cleveland Plain Dealer a C Grade
 Seattle Times
 A+
 20
San Jose Mercury News
 F
 69
 San Jose Mercury News Gets F from BBB
 Minneapolis Star Tribune
 A+
 106
Cingular Detroit
 F
 1
 Does Cingular Pass With BBB?
 Cingular Sacramento
 A-
 853
Cingular LA-Non Member
 C-
 1
Cingular LA-Member
 A-
 Unknown

ALGORITHM RUN AMOK
The dictionary defines al-go-rithm as: 1) A predetermined set of instructions for solving a specific problem in a limited number of steps. 2) A precise step-by-step plan for a computational procedure that begins with an input value and yields an output value in a finite number of steps.

The following side-by-side comparisons of BBB Grades for similar businesses is an attempt to reverse-engineer the Better Business Bureau's 16 point grading algorithm.  An algorithm is essentially a mathematical formula, hence similar input (Corporate behavior) should result in similar grades regardless of location or membership in the BBB (remember, the Better Business Bureau is on record as stating that the most the BBB accreditation/membership counts for is one-half grade.)   The examples below clearly demonstrate that this is not the case:  similar businesses, with similar complaint history, vary widely in BBB Grade.  The two most common variables that seem to create this disparity in the BBB grading curve are membership, or lack thereof, in the BBB (depending on location, not being a member of the BBB costs a business between 1 and 5 grade points); and area of the country (different offices seem to use different algorithms, or at least apply them differently.)

Is Yahoo really that much better than Google?  The San Jose BBB has awarded Yahoo!, a member of the San Jose BBB, an A grade, while handing out a D grade to non-member, Google.  Since Yahoo! had three times the reported complaints as Google (and adjusted for actual usage figures a complaint level that is nine times as great) one must assume that the major difference is whether or not these businesses are a member of the BBB.  It appears, in this case, that being a member of the BBB is worth four grade points.  There is one other difference, the San Jose BBB could not determine the business start date for Google.  Five minutes of research in the California Corporate Records would have revealed that Google was started in 2002.  Editors note:  On April 15, Google's Grade was raised to a "B" and on April 17 Google's grade again improved to an "A-" in spite of the fact that their complaint total rose to 449.
Actual screen shots taken 02.14.2009 from the San Jose BBB


 Actual screen shots taken 02.14.2009 from the San Jose BBB



Apple or Microsoft--which is better?  Admittedly, the grade point difference between Microsoft and Apple is not huge, and one could argue that the disparity in complaint volume can be explained away by Microsoft's larger market share, but still is Microsoft actually a better customer experience than Apple?  In this reporter's experience, dealing with Microsoft's help line is a nerve-racking, rarely satisfying experience.  Apple's customer experience may have declined a bit lately, but it is still far superior to Microsoft.  The disparity in grades in this case is due to either the membership, or lack thereof, in BBB, or a reflection of how different BBB office's apply what is supposed to be the same algorithm.
Actual screen shots taken 2.28.2009 from the San Jose BBB
BBB Gives Apple a B

 Actual screen shots taken 2.28.2009 from the Seattle BBB




This is flat out Goofy!  Walt Disney has two theme parks in the United States, the original in Los Angeles, California and Walt Disney World in Orlando, Florida.  It is interesting to note that neither Disney theme park is a member of the Better Business Bureau.  The Orlando based Walt Disney World has more than three times the complaints that the Los Angeles Disneyland has, yet has a BBB grade that is four grade points higher than it's west coast counterpart.  This disparity in BBB grades strongly suggests that different BBB offices apply the Better Business Bureau's algorithm quite differently.  Editors note:  On March 20th, the grade for the Disneyland Resort was improved to an A with no explanation for the change.
Actual screen shots taken 2.28.09 from the Los Angeles BBB


 Actual screen shots taken 2.28.09 from the Orlando BBB




All newspapers are the same, aren't they?  Apparently not.  The BBB has graded many of the major newspapers in the United States.  The grades range the full gamut from an A+ to a F.  While there are some minor variances in the number of complaints received by the various newspapers listed below, in general they fell within similar ranges.  Obviously, newspapers are regional in nature, and so there are grades from different regional BBB offices.  Again, there is no discernible pattern, by region that accounts for the vast disparity in grading.  The only consistent variable between those newspapers receiving an A+ grade and those receiving grades of C or below, is that those newspapers receiving A+ grades are members of the BBB.  This certainly adds credence to those who suggest that the Better Business Bureau is engaged in pay-for-play grading.  Editors note:  On March 20th, the grade for the Los Angeles Times was improved to an A with no explanation for the change.
Actual screen shots taken 2.28.09 from the Los Angeles BBB
Los Angeles Times gets a F from the BBB

 Actual screen shots taken 2.28.09 from the Los Angeles BBB
San Francisco Chronicle Gets A+ grade from BBB
Actual screen shots taken 2.28.09 from the Los Angeles BBB
Orange Country Register Gets C Grade from BBB

 Actual screen shots taken 2.28.09 from the Detroit BBB
Detroit Free Press Gets A+ from BBB
Actual screen shots taken 2.28.09 from the Philadelphia BBB
Philadelphia Inquirer Gets C Grade from BBB

 Actual screen shots taken 2.28.09 from the Washington DC BBB
Washington Post Gets A+ BBB Grade
Actual screen shots taken 2.28.09 from the Cleveland BBB
Cleveland Plain Dealer Graded C- by BBB




 Actual screen shots taken 2.28.09 from the Seattle BBB
Seattle Times Gets A+ from BBB
Actual screen shots taken 2.28.09 from the San Jose BBB
San Jose Mercury News Gets Failing Grade from BBB

 Actual screen shots taken 2.28.09 from the Minneapolis BBB
Minneapolis Newspaper Gets A+ Grade from BBB
A Cingular take on the BBB grading algorithm.  If you weren't confused by the previous examples of BBB grading anomalies, these results from a nationwide glance at Better Business Bureau grades for Cingular Wireless stores are perplexing.  One complaint earns Cingular an F in Detroit, but 853 complaints don't prevent Cingular from scoring an A+ in Sacramento.  And if we look at grades for various Los Angeles Cingular outlets, we notice that the non-member Cingular store in West Los Angeles was given a C- grade while member Cingular stores in the same city were given A- grades.
Actual screen shots taken 2.28.09 from the Detroit BBB
Cingular gets D from Detroit BBB



 Actual screen shots taken 2.28.09 from the Sacramento BBB
sacramento BBB gives cingular A+ grade
Actual screen shots taken 2.28.09 from the Los Angeles BBB
Los Angeles Cingular get C- from BBB

 Actual screen shots taken 2.28.09 from the Los Angeles BBB
Cingular Santa Monica gets A- from BBB

CONCLUSIONS:
1.  It pays to be a member of the BBB.  Membership (Accredited Business) status is worth an average of at least three grade points.  In other words, the norm seems to be that a non-accredited business is hard pressed to receive a grade above a C, regardless of their complaint history or other issues.
2.  The BBB has no standards.  There is little, if any, standardization between the grades given by the various BBB regional offices.  It appears the regional BBB offices were not correctly instructed in how to apply the new BBB grading algorithm and that there is very little oversight given to this important issue by the national BBB organization.
3.  Some BBB regional offices are worse than others.  The worst offender appears to be the Los Angeles BBB office (official name, Better Business Bureau of the Southland, Inc.).  The average disparity between accredited businesses and non-accredited business in similar categories nationwide is between two and three grades.  The Los Angeles BBB regularly disparages non-accredited businesses by a full five grade points.
4.  The recently introduced BBB grading system is seriously flawed.  There is no reasonable explanation that can explain the disparities, the inequities and the anomalies found in this brief survey of Better Business Grades.  It is clear that the grading system has serious problems and it is a shame that the Better Business Bureau is disparaging businesses unfairly due to their faulty grading system.
Editor's note:  Neither I or this website have a problem with the Better Business Bureau.  Indeed, there is a need for a consumer advocacy group that the public can turn to, and in most cases, the Better Business Bureau fulfills this role adequately.  What we do have a problem with is the BBB's "A-F" grading system.  It is demonstratively biased, based on hearsay, weighted in favor of dues paying members and offers no recourse when the BBB makes an error.  It is obvious the Better Business Bureau does not now, nor ever will have, the resources to fully investigate the four million businesses in their database, much less grade them with any sense of accuracy.  It's an impossible job, and to think otherwise is a mistake that the BBB should acknowledge so they can get back to their reason for existence--protecting the consumer.  There's an old saying, "who will watch the watchers" and it applies here as the BBB has set themselves up to be above the law.  We are simply here to help the Better Business Bureau do a better job so that they may properly serve the consumer, the business community and themselves.
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