Scams

Highland Council Trading Standards Service receives regular calls from concerned businesses regarding marketing and publishing scams.

Our advice to all business is to be on your guard when you or members of your staff respond to phone calls, emails, text messages and faxes.

Rogue publishers who are determined to sell advertising space, relentlessly bombard businesses with phone calls and text messages.   Publication ‘opportunities’  can come in may guises include advertising space in charity leaflets, wall-planners, crime prevention diaries, drugs awareness leaflets for schools and the old favourite of business directories.

Both small and large business can be affected by this scam and operatives expertly use misleading patter that is often carefully scripted, to sell advertising space in various types of publications. Costs to your business can range significantly from about £100 to £1,000, depending upon the size of advert.

So how do you spot if your business has been targeted by a scam?  Here are some telltale signs on what to look out for and information on how to protect your business.

The business directory scam

Probably one of the most prevalent scams affecting UK businesses is the business directory scam.  The business directory scam relates to business listings either in published directories, electronic directories (CD-ROMs) or on websites.

One example of such a scam was the offer of a ‘Free’ CD-Rom directory.  The first issue was ‘free’ but after checking the small print, the business found that they had agreed to pay £661 for a further three issues.

These types of contracts may well be legally binding so it is important not to commit your business to any contract for advertising until you have read all the terms and conditions of the contract.

The ‘Pitch’ – Invoices and demands for payment.

Official-looking invoices are sent in the post offering to advertise your business in a “free” listing or asking if you wish to continue being included in a hard copy or online business directory.  These might appear to be simple requests inviting a free listing but beware you are not tricked into signing a document thinking it to be an application for a free entry in a Guide.  You may be asked to check the details about your business, or be informed that an employee of yours has requested the form.  You will be told to return the form even if you do not want to place an order.

Be on your guard against such invoices and documents and warn your staff to check out all requests for confirmation of information of your business and requests for payment.

Remember – you are more likely to become a repeat victim of this type of scam if you do pay.   You may be opening up your business to a series of scam phone calls in the future.

The con

In the small print of any invoice or contract, it will state that by signing the form you are committing to an order.  If you sign and return the form you are agreeing to pay for ongoing entries in the directory, for periods costing hundreds of pounds per year.  The publisher may try to enforce this debt by sending threatening ‘debt collection’ letters.

How to protect your business against marketing scams

* Always carefully read the small print in any business directory offer to be clear about what you are being offered and how much it might cost you.

* Don’t be pressured into paying for services that have you have not agreed to or have not been provided.

* If you receive demands for payments for something you believe you have not ordered, send a written reply, stating clearly why you feel you do not owe any money.  Always keep a copy for your records.

* If you are threatened with a debt collection or a credit ‘black-listing’, remember that ultimately only a court can decide whether you are liable to pay and disputes with other businesses would not necessarily affect your credit rating.

Victims of business directory scams are known to have received threatening letters which have stated:

“…this is your last chance to pay.  Attached is a summons we have obtained to take you to court if you do not pay now…”

The document that accompanies such letters is not usually an actual ‘Court Summons’,  but a copy of an application form that must be submitted to a civil court to request a hearing. Some victims have been limited companies and the scammers involved threaten to start insolvency proceedings by applying to the courts for a ‘winding up order’.

Always seek legal advice before responding to such demands.

Unfortunately, many direct mail scammers are based overseas, so they are unregulated and largely beyond the reach of UK authorities.  For this reason it is important that you know what to look out for to protect your business from falling victim.

If you feel that you have been a victim of a business scam or would like to know more on how to protect your business from publication scams contact Highland Trading Standards on 01463/228700 or visit our offices at:

Highland Council Trading Standards
38 Harbour Road
Inverness
IV1 1UF.
Telephone No: 01463/228717

For further Highland Trading Standards news please go to: www.highland.gov.uk/tradingstandardsnews <http://www.highland.gov.uk/tradingstandardsnews.htm>

Note: Highland Council Trading Standards is part of Transport, Environment and Community Service, Highland Council, Glenurquhart Road, Inverness