Leslie Kish | Director, Operations & Accreditation
Complaint information is one of the key components of a BBB Reliability Report and a major factor in a company’s BBB letter grade. From time to time, Cincinnati BBB gets calls from consumers who are wondering how a company can have an A rating or a “no complaint” report when they had filed a complaint at some point in the past. BBB reports are based on a three-year reporting period. The three-year time frame pertains to most of the information in a BBB report including complaints and government actions. This means that complaints filed by consumers are listed in the BBB Reliability Report for three years. After three years, the complaint, regardless of its outcome, expires and is no longer included in the report or factored into the rating. The complaint data in BBB Reliability Reports is updated daily as old complaints expire and new complaints are added.
So why three years? I’m not exactly sure how BBB arrived at the three year period but I do know the theory behind it. BBBs want to focus on the most pertinent information to consumers making purchasing decisions today. We understand that over time businesses change – there is employee turn-over, changes in management, changes in advertising, products, policies and technologies. All of these things can impact the complaints that a company receives and how they handle them. BBB also wants to encourage businesses to use complaints as an opportunity to learn and improve their practices and that should be reflected in the Reliability Report.
Chances are if a company has big problems that they fail to correct, new complaints will be filed to replace those that drop off after three years. If you have questions about BBB Reliability Reports or Ratings, please post your comments or email me. Your questions may be answered in an upcoming post.