This article is from the Toys FAQ, by email@example.com (Scott Gordon) with numerous contributions by others.
From the rec.arts.sf.starwars.collecting FAQ:
"This scale is usually used to grade carded figures and boxed toys.
It was designed to be more specific and quantitative than a scale
based on individual terms. C-10 is absolutely mint, perfect,
free of defects. C-1 is totally beat up. What goes in between is
highly subjective. No matter what anyone tells you, there is
no absolute meaning to this scale, and each collector uses their
own relative grading. It is best to continue to buy from dealers
you trust after you get a feel for their grading scale from some of
When buying carded or packaged items, always ask for a
description of all defects in addition to this C-1 to C-10 scale
grading. Some typical defects in carded figures and boxed toys
include (but are not limited to): yellowed bubble, edge wear,
creasing, bends, card is not flat, bubble is crushed, bubble
has ding, bubble has dent (bigger than a ding), tears on card,
bubble separated from card over a small section, card colors are
faded, cellophane ripped, price tag still in place, sticker tear
(from removing price tag), card is punched.
The prices listed in price guides for carded figures are for
C-10 samples. The price drops dramatically (sometimes to about
the same price as a loose mint figure) if there are significant