UPDATED 1:42 P.M. ET (U.S.A.) The Better Business Bureau branch in Dallas has given Narc That Car a rating of “F,” the worst-possible rating on the BBB’s 14-step rating scale.
Narc That Car’s previous rating was “NR,” meaning the firm had no rating with the BBB, which opened an inquiry into the company Jan. 18.
The BBB said that, despite the fact Narc That Car provided some information on the company’s compensation practices Feb. 8, the organization “remains concerned as to whether the business model, in practice, truly provides any significant method of compensation which would not require sponsorship of additional program participants.”
“According to the company, as of February 10, 2010, only 1% of total commissions paid out to independent consultants was for the sale of license plate information to third parties, referred to as ‘client share,’” the BBB said.
“Previously, the company’s ‘client share’ income was the only repeatable form of compensation which did not involve the recruitment of others into the opportunity. However, as of March 1, 2010, the company has provided a modified compensation plan which allows for base-level independent consultants to receive commission payments.”
Read the BBB’s rating for Narc That Car as of March 5, 2010.