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International Cooperation halts European City Guide Cross border scam

A Spanish company that misled UK businesses into paying for adverts in a directory has been stopped in its tracks following co-operation between the OFT and its colleagues in Spain.

European City Guide, based in Barcelona, has been told to change its mailshots by the Catalan Department of Industry, Commerce and Tourism after the OFT raised its concerns with the authority. It is believed that more than five million mailshots were sent to European businesses over that past two years – mostly to British and French firms.

European City Guide has agreed to cancel half the 800 contested invoices the Catalan Authorities received complaints about, some of which were for more than £1000. It has also agreed to obtain approval from the Catalan authority before issuing revised mailshots.

The OFT got involved after receiving more than 100 complaints from British businesses claiming they had been incorrectly invoiced. It called on the Catalan authority to investigate. It did and ruled that European City Guide was guilty of seriously infringing Spanish laws on misleading advertising.

European City Guide has sent out mailshots asking businesses to check enclosed details about their company that it planned to place in its directory. The mailings gve the impression that the directory entries were free. However, small print meant that traders who signed and returned an enclosed form – even if simply correcting or adding to the details provided – were committed to paying for three entries and a copy of the directory.

John Vickers, the Directory General of Fair Trading, Said:
"This case shows how government agencies can work together across borders to stop malpractices. Similar schemes may still be operating, so businesses should be vigilant to guard against this kind of scam"

UK businesses who receive an unexpected invoice from European City Guide should, in the first instance, complain to European City Guide. If the matter isn’t resolved, details should be forwarded to the Catalan authorities at Generalitat de Catalunya, Direccion General e Consumo y Seguridad Industrial, Avda. Diagonal, 405 bis, 08008 Barcelona, Spain who will look into the matter.

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The following articles (cross-border scam & Spanish ruling) can be found at http://www.oft.gov.uk/news. Select search and enter European City Guide.

International co-operation halts cross-border scamPN 13/01    30 March 2001
A Spanish company that misled UK businesses into paying for adverts in a directory has been stopped in its tracks following co-operation between the OFT and its colleagues in Spain.

European City Guide, based in Barcelona, has been told to change its mailshots by the Catalan Department of Industry, Commerce and Tourism after the OFT raised its concerns with the authority. It is believed that more than five million mailshots were sent to European businesses over the past two years – mostly to British and French firms.

European City Guide has agreed to cancel half the 800 contested invoices the Catalan Authorities received complaints about, some of which were for more than £1,000. It has also agreed to obtain approval from the Catalan authority before issuing revised mailshots.

The OFT got involved after receiving more than 100 complaints from British businesses claiming they had been incorrectly invoiced. It called on the Catalan authority to investigate. It did and ruled that European City Guide was guilty of seriously infringing Spanish laws on misleading advertising.

European City Guide had sent out mailshots asking businesses to check enclosed details about their company that it planned to place in its directory. The mailings gave the impression that the directory entries were free. However, small print meant that traders who signed and returned an enclosed form – even if simply correcting or adding to the details provided – were committed to paying for three entries and a copy of the directory.

John Vickers, the Director General of Fair Trading, said:
'This case shows how government agencies can work together across borders to stop malpractices. Similar schemes may still be operating, so businesses should be vigilant to guard against this kind of scam.'

UK businesses who receive an unexpected invoice from European City Guide should, in the first instance, complain to European City Guide. If the matter isn't resolved, details should be forwarded to the Catalan authorities at Generalitat de Catalunya, Dirección General de Consumo y Seguridad Industrial, Avda. Diagonal, 405 bis, 08008 Barcelona, Spain who will look in to the matter.

NOTES

Spanish ruling protects UK businessesCourt describes mailshot as 'deceitful and misleading'
PN 37/02     27 June 2002
A Spanish court has upheld a ruling against a company that misled UK businesses into paying for adverts in its directory.

European City Guide, based in Barcelona, was originally found by the Catalan authorities to have seriously infringed Spanish laws on misleading advertising in March 2001 following international cooperation with the OFT. Its appeal against this ruling has now been dismissed.

European City Guide had sent out mailshots, mostly to British and French firms, asking businesses to check the details about their company that it planned to place in its directory. The mailings asked recipients to verify their details, fill in the application and return it even if they didn't want to place an order, giving the impression that this would incur no charges. However businesses that signed and returned the form – even if only to correct or add to the details provided – were later invoiced for £1,455, being the cost of three entries, and a copy of the directory. More than 100 complaints were received by the OFT from British businesses who had been targeted by European City Guide claiming they had been incorrectly invoiced.

The Ruling Magistrate in Barcelona has upheld the original ruling following an appeal from European City Guide. The judgment described European City Guide's mailshot as 'deceitful' and 'misleading' and 'led those reading it to believe that by signing it they would incur no economic liabilities of any kind'.

Welcoming the ruling John Vickers, the Director General of Fair Trading, said:

'Cross-border cooperation is important and effective in tackling unfair business practices. This is a good result from the Spanish courts that protects UK companies from such misleading practices.'

NOTES

JM

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