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Rt. Hon. Sir Alan Beith MPLiberal Democrat Member of Parliament for Berwick Upon TweedWorking for you and the Berwick upon Tweed Constituency all year roundin Northumberland and in Westminster |
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Scam warnings for local businesses
June 24, 2010 12:00 AM
Lib Dem North East MEP Fiona Hall has issued a warning about a potential scam that has left a number of businesses across the North East facing bills of thousands of pounds.
The European City Guide sends out approximately 6.5m forms offering to advertise small companies in a business directory, seemingly for free. On responding, these businesses start receiving invoices for a costly contract hidden in the small print.
Fiona urges local businesses to be aware of the European City Guide and similar scams;
"These invitations are designed to be misleading and rip-off small businesses. Anyone who receives one should exercise caution. If in doubt, they should contact the "Scambusters" team at the Office of Fair Trading.
"I have been contacted by a number of constituents about such scams and I am pleased to say that to my knowledge, no-one has ever been forced to pay out. However, the threat and worry that they cause businesses at an already stressful time is appalling."
Companies like the European City Guide exploit a loophole in fair advertising laws by operating across borders. Fiona is calling for EU action to crack down on these scamsters.
She said:
"This is another example of how European cooperation can benefit us here in the North East. I want the EU to take action to protect small businesses in my constituency and around Europe."
The European Parliament has adopted a report which asks the Commission to revise current legislation regulating misleading advertising and develop effective penalties that could be enforced across the EU. However, Member State governments are reluctant to allow trading standards legislation to be introduced at a European level. A copy of the response of a Parliamentary Question to the European Commission can be viewed here, http://www.europarl.europa.eu/sides/getAllAnswers.do?reference=E-2010-2084&language=EN. The Commissioner writes that enforcement of Union legislation in this area is the responsibility of national courts and/or public enforcement authorities. But the Commission has been trying to increase awareness of the problem by presenting the issue to European business organisations.
The Commission recommends that companies that are victims of such scams should report them to the national authority responsible for the enforcement of Directive 2006/114/EC concerning misleading and comparative advertising. In the UK this is the Office of Fair Trading (OFT) e-mail: enquiries@oft.gsi.gov.uk, website: www.oft.gov.uk, Consumer Direct: 08454 04 05 06.
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