By Martin Banks - 20th January 2011
But it does need concerted efforts by authorities in all member states
Malcolm Harbour
Senior MEP Malcolm Harbour has alerted European businesses to be on their guard against a "scam" thought to involve hundreds of thousands of euros a year.
Under the "deal" businesses receive an invitation to appear in a "business directory" for free.
But, after they have signed up, they realise that they've committed to paying hundreds or thousands of euros to appear.
Harbour, a UK member, said, "It's a total scam that has affected no end of businesses."
MEPs in the past have received a large volume of correspondence on it and parliament passed a report in the petitions committee two years ago calling for action.
But Harbour says "not enough is being done" to address the problem.
He added, "I have seen these invitations and, clearly, these people are still trying to extract large sums from companies whose staff don't read the small print.
"On the online form the small print is very small and signing it commits you to pay 990 euros per annum for three years with an automatic extension if not cancelled."
He added, "In the past, MEPs have received hundreds if not thousands of letters and emails that have been caught up in this scam. The advice that we gave at the time was to refuse payment.
"Parliament has consistently called for action to be taken by both the EU and national governments to close this scam down.
"Businesses sign up to what they believe to be a free listings service in good faith, only to discover that they are committing to spending significant sums of money for a service that they do not want and that many cannot afford.
"Actions by authorities in different countries for business guides, meant that recent guide offers included much clearer terms, with less chance of businesses being deceived into unacceptable contract terms.
"Over Christmas, however, I received an email promotion from a Dutch address, which is far worse in its disguised deception than anything I have seen before," said Harbour, who is chairman of the internal market and consumer protection committee
"I have immediately raised this matter with the European commission and I hope that we can find a way to take these misleading promotions off the market.
"But it does need concerted efforts by authorities in all member states. I will be writing to the company and the Dutch authorities about this matter."
