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


  V 1.5  Nov 2010
CH-CH-CH-CHANGES COMING TO BBB

NOVEMBER 18, 2010.  Here's part of the statement from Steve Cox on changes being implemented by the Better Business Bureau in light of recent events. 

The executive committee of the Council of Better Business Bureaus held a special meeting to discuss concerns recently raised about the BBB rating system, accreditation process and sales practices.  While we do not agree with all that’s been said, we acknowledge that public trust in the BBB and its business reviews can be adversely affected by any business practice that gives even the appearance of being unfair. As a result, today, the BBB unveiled a plan to take specific actions, including:

  • By next week, the BBB ratings system will no longer give additional points to accredited businesses because of their accredited status. BBB will continue to issue ratings based on the other 16 ratings factors currently used.
  • Immediately, BBB will make available on its website a streamlined process for receiving complaints on BBB sales practices and will implement procedures for investigating each complaint.
  • BBB will conduct a review of its process for accrediting businesses, and as soon as possible, make changes that will apply system-wide.
  • BBB will engage an independent third party to assist us in our review process.

We are moving ahead with implementing changes right away. Some are immediate, others will take longer to complete. All will support our commitment to help consumers easily and quickly find trustworthy businesses.

Here's the link to the full BBB response.

JIMMIE RIVERS COMMENTS:
First, the proposed changes detailed above are actually more substantial than I expected the BBB capable of.  Personally, I don't think they go nearly far enough, but do acknowledge there are some major improvements if implemented correctly.  On a point by point basis here's my take:

1.  No additional grade bump for accredited businesses is a good thing.  Does that mean that nobody can get an A+, or that non-accredited businesses can get an A+?  Either way, it's still a good thing. 
2.  The BBB will continue to use the other 16 rating factors in their grades.  This is not resolving a fundamental problem with the BBB grading system at all.   Until the BBB gets the definition and implementation of what constitutes an "unanswered complaint" all the pitfalls and problems of the grading system will continue to exist.  Here are the three problems I see with the "unanswered complaint" counting for so much of a business' grade (one unanswered complaint = D grade, two unanswered complaints = F grade).
   

  • Calling it an unanswered complaint is deceptive to its core.  It suggests that the business did not respond to the consumer, when the reality is an unanswered complaint means the business did not (supposedly) respond to the Better Business Bureau.  This has no meaning to the consumer and to make it the single biggest grading criteria is still absurd.
  • There are many documented instances where the BBB either does not send a complaint out to a non-member business, or has wrong contact information for a non-member business.  In either case, the non-member business has no knowledge of the BBB complaint, yet is given a failing grade for not responding.  How do you respond to something you never received.
  • There are also many documented instances where the BBB decides that the non-member business did not respond correctly.  I know of several cases where the non-member business gave the consumer a full refund and more and yet the BBB classified this response as an unanswered complaint--even thought the customer said they were completely happy.  This puts it all in the category of being a judgment call, and human nature says that the BBB will be more lenient dealing with member businesses than non-member businesses.
3.  The BBB will finally allow complaints about their sales practices to be filed and investigated.  This is a great first step.  The BBB needs to make this available retroactively as well.  Additionally, the BBB needs to implement the same system to investigate mismanaged handlings of the complaint process.

4.  The BBB will review their accreditation process is a nice step but there's not enough information to comment yet.

5.  An independent third party to assist in the review process is a great concept.  It will depend on who they put in place and what topics are eligible to be reviewed.  I suspect that this will be the busiest department in the BBB for quite some time.

6.  Can't wait for the BBB response to Connecticut AG Richard Blumenthal that's due in less than 10 days.
Editor's note:  There is a need for a consumer advocacy group that the public can turn to, and it used to be that the Better Business Bureau fulfilled this role adequately.  No longer.  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.  If they refuse to reform, then they must bear the consequences.
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