16th June 2008
Business owners have been warned about a con involving the alleged miss-selling of directory listings.
Some firms in the UK have signed up to international business directories, without realising that a large subscription cost is included in the small print.
A specialist at the Office of Fair Trading (OFT), Mike Lamborne, said that cons of this type had become the commonest business-to-business scam in the UK.
"We are aware of the great anxiety that demands for payment of unsolicited or unwanted goods and services can sometimes cause to small businesses," he wrote in response to one MP who expressed concern about the situation.
His comments are quoted by BBC News, which highlights the case of one small businesses owner from Hampshire who was caught out by a directory scheme.
Lisa Glover, who co-runs GPS hire service Satnav2Go, said that she faces demands for 990 Euros each year for the next three years, from a firm that she assumed had offered free listings.
The listings company in question is EU Business Services Ltd, which is based in the West Indies. BBC News said that it had been unable to contact anyone at the company to obtain a response to the claims.
Mike Lamborne advised business owners that hiding the true cost of a service is illegal in the UK, and that only the courts can decide whether a business is liable to pay a debt.
Warning over business directory scams
Some firms in the UK have signed up to international business directories, without realising that a large subscription cost is included in the small print.
A specialist at the Office of Fair Trading (OFT), Mike Lamborne, said that cons of this type had become the commonest business-to-business scam in the UK.
"We are aware of the great anxiety that demands for payment of unsolicited or unwanted goods and services can sometimes cause to small businesses," he wrote in response to one MP who expressed concern about the situation.
His comments are quoted by BBC News, which highlights the case of one small businesses owner from Hampshire who was caught out by a directory scheme.
Lisa Glover, who co-runs GPS hire service Satnav2Go, said that she faces demands for 990 Euros each year for the next three years, from a firm that she assumed had offered free listings.
The listings company in question is EU Business Services Ltd, which is based in the West Indies. BBC News said that it had been unable to contact anyone at the company to obtain a response to the claims.
Mike Lamborne advised business owners that hiding the true cost of a service is illegal in the UK, and that only the courts can decide whether a business is liable to pay a debt.
Tags: Office, Regulations
- 21st November 2008 Official retail figures 'hide tough condition', says BRC
- 20th November 2008 Entrepreneurs 'should be school governors'
- 19th November 2008 Small businesses urged to register hazardous substances
Delicious
Digg
reddit
Facebook
StumbleUpon