Feldco Sues Better Business Bureau Over 'No Rating'
CHICAGO (STMW) - A window and door installation company filed a libel lawsuit Wednesday against Chicago's Better Business Bureau, claiming the BBB's "No Rating" grade has hurt its reputation.
Feldco Factory Direct LLC. claims the Better Business Bureau in Chicago and Northern Illinois libeled the window and door company by giving it a "No Rating" on its website because a questioned use of the word "free" in advertisements, according to a suit filed in Cook County Circuit Court.
The Better Business Bureau provides reports on a businesses performance and integrity "so consumers and businesses alike have an unbiased source to guide them on matters of trust," according to the BBB's website.
Only businesses meeting the BBB's standards are invited to join the BBB, and all accredited businesses have agreed to live up to the "Standards for Trust," the website said.
The suit claims Feldco is a paying member of the BBB that has a "long-standing relationship with BBB that has consistently involved compliance with BBB standards."
On June 16, the BBB issued Feldco a "No Report" grade, according to the suit, which claims the BBB issued the grade because of the use of the term "free" in several advertisements.
The BBB notified the public via its website that Feldco was in violation of advertising standards and removed its rating from the website as a result of the alleged violation, according to the suit. Prior to removal, Feldco maintained a rating of good standing for thirty consecutive years, the suit said.
Feldco claims the BBB grade negatively impacted its reputation. The two-count suit claims defamation against the Better Business Bureau and in Chicago and Northern Illinois and Steve Bernas.
Bernas said the BBB has not yet received a copy of the suit and declined to comment on pending litigation.
Feldco is seeking compensatory damages of more than $50,000, "substantial" punitive damages plus the cost of the suit.
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