Time to stamp out bogus business directory scams, say MEPs
June 10, 2011 11:41 AM
Euro MPs including local Lib Dem MEP Liz Lynne are demanding tough action to stop small businesses being bullied and deceived by scammers running bogus directory listings.
The European Parliament's Petitions Committee has received more than 400 complaints about "business directory companies" harassing small firms, charities and even schools.
After being lured in by a "free" offer, victims are told they have signed up to a binding multi-annual contract for repeat listings and are charged as much as £1000 a year.
Businesses behind the scams are often based in a different Member State to their victims, making legal action to stop the harassment difficult and expensive.
After a debate at the Parliament in Strasbourg on Thursday, MEPs backed a resolution calling for the European Commission and member states to step up co-ordinated action to stamp out fraudulent practices and enforce the law more effectively.
Speaking after the vote, Liz Lynne MEP said: "Thousands of small companies and other small organisations have been taken in by these scams. If you have never heard of a business directory there is little point signing up to it and beware the small print.
"But it is plain that many of these directories are breaking the law, putting pressure on people who thought they had signed up to a free offer to pay thousands of pounds.
"I have even had people trying to get my constituency office to sign up.
"This is not just a problem in Britain but all over the EU. It's a disgraceful situation but we do not need new laws, all the Parliament is asking for is for the existing laws to be enforced properly.
"All member states including Britain are required by the 2006 Directive on Misleading and Comparative Advertising to take action. We need the police and trading standards authorities in different countries to work together to stamp out this nonsense."
The resolution passed yesterday also calls on the Commission to speed up rules blacklisting misleading practices by business directories.
ENDS
Note: The full text of the resolution passed can be found at: http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B7-2011-0342&language=EN
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