BBB does not routinely check required competency licensing and government actions for businesses that do not seek BBB accreditation, although in some cases BBB learns of these matters through its marketplace research. However, older government actions have less of an impact than newer government actions of the same type.īBB routinely checks required competency licensing and government actions before a business is accredited by BBB. Government action deductions consider several factors including how the case is finalized as well as the amount of restitution, penalties or fines imposed against the business. Finalized government actions against the business that relate to its marketplace activities and, in BBB's opinion, raise questions about the business's ethics or its reliability in providing products/services.Failure of the business to have required competency licensing (i.e., licensing that requires a competency assessment or can be taken away based on misconduct by business).Licensing and government actions known to BBB.Ī business's BBB rating is lowered when BBB has knowledge of the following: A business uses false addresses or an address cannot be determined.Ī business's BBB rating is lowered if a business does not honor its commitments to BBB, including commitments to abide by a mediation settlement or an arbitration award.A business does not provide complete information about products and services offered, and/or ownership.Transparent Business Practices.Ī business's BBB rating is lowered if BBB determines that the business is not being transparent about its marketplace conduct. If BBB is unable to obtain, from the business or from other sources, information about time in business that BBB deems reliable, BBB will consider business to have started at the time BBB opened its file on the business. Time in business.Ī business's BBB rating is based, in part, on the length of time the business has been operating. Type of business.Ī business's BBB rating is lowered if, in BBB's opinion, the business is a type of business that raises marketplace concerns or is believed to operate in violation of the law. If BBB cannot reliably determine business size, it will consider the business to fall within BBB's smallest size category. Older resolved complaints have less of an impact on the rating than newer complaints.īBB analysis of a business's complaint history generally takes into account the business's size if BBB has reliable information to establish its size.
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