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Action on Directory Scams

Press Release

For Immediate Release

8 June 2011


MEP CALLS FOR ACTION ON MISLEADING BUSINESS PRACTISES

Catherine Stihler, Labour MEP for Scotland, has called for the blacklisting of ‘misleading business practises’ across Europe and legal aid for small Scottish businesses that are effected by widespread business scams.

For a long time dubious directory companies – operating across Europe – have been targeting small businesses with what appears to be a ‘free’ advertisement deal in an EU-wide business directory.  The corrupt directory firm proceeds to hound the small business with threatening letters, calling for court action and fee charges reaching at least hundreds of euros.  

The firms usually send small businesses a fax which misleads the company into thinking that the directory service is free.

Mrs. Stihler has called on this practice to be made unlawful and for the EU to support new, watertight legislation:

“Loopholes in the Directive on Misleading and Comparative Advertising allow these scams to flourish and to charge innocent people fees without small businesses knowing what they have signed up for.  Small businesses often receive a fax with next to no information on the ‘hidden costs’.  There is a serious lack of protection against European Business Directories”.  

“It is possible for a firm in Spain to target a small business in Scotland and not be brought to account for their actions”.

“The Commission advise that the loophole may rest with the enforcement of national legislations.  Nevertheless I am calling for this practise to be blacklisted throughout the EU and any company not following strict rules shall face court action themselves within the member state.”

Mrs Stihler has also called on the Commission to consider introducing legal aid for small businesses that are victims of such scams.

Mrs Stihler added:

“It is vital that we support our small businesses - ‘think small first’, as the Commission advises us.  It is high time that we do promote growth and stamp out these misleading practises”.

ENDS