The directory scams, which target businesses, voluntary groups, sports clubs and even churches, operate by appearing to offer a free listing when in reality the true cost, hidden in the small print, is almost £900 for a so-called advertisement. The 'contract' is almost impossible to cancel and victims are aggressively pursued by the companies and their related debt collection agencies.
Richard said: "Over the years these scams have made millions of pounds and have bullied thousands of people all over Europe. This report will hopefully offer some small consolation to the victims but is a big step forward in working to eradicate the scams. It is now up to the European Commission to ensure every EU country takes these scams to task and follows the example of Austria who have outlawed the practices used by the likes of European City Guide, Construct Data, NovaChannel AG and many more.
"It's been a long battle to get the issue acknowledged at European level and I know the scams will not give up easily but today's vote sends out a clear message to the scams: the way you operate is unacceptable and illegal. We must now make sure these scams are shut down across Europe whenever they pop up."
At one of the report's hearings, the European City Guide admitted they send out as many as six million forms annually.
Richard added: "Anyone who has mistakenly signed one of these forms should explain they have been misled and refuse to pay. If you receive a form from a directory scam through the post the best thing to do is bin it!"
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Directory scams work by sending unsolicited forms to businesses, charities and voluntary organisations appearing to offer a free listing if they update their details. However, the small print reveals that should you return a form you are in fact signing up to a three-year contract that costs around £900 a year. Victims are never billed until the short cancellation period has long passed. The scams then use aggressive tactics to pressure people into paying.
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People should never pay any money or return any forms to the following groups: European City Guide, UK Internet Register, Construct Data Verlag, Novachannel, DAD Deutscher Adressdienst GmbH and EU Company Directory.
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The Busuttil Report calls on the European Commission to ensure that all countries in the EU are implementing and enforcing the Misleading and Comparative Advertising Directive adequately.
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The report also recommends that EU countries follow the example of Austria which has specifically extended its Unfair Commercial Practices legislation to business directories which use the methods of the ECG.
- You can learn more about directory scams in Richard's YouTube video which can be viewed at www.richardcorbett.org.uk/directoryscams.htm
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