SCAM WARNING FOR LOCAL BUSINESSES

12.00.00am BST (GMT +0100) Mon 21st Jun 2010

Lib Dem North East MEP Fiona Hall has issued a warning about a potential scam that has left a number of businesses across the North East facing bills of thousands of pounds.

The European City Guide sends out approximately 6.5m forms offering to advertise small companies in a business directory, seemingly for free. On responding, these businesses start receiving invoices for a costly contract hidden in the small print.

Fiona urges local businesses to be aware of the European City Guide and similar scams;

"These invitations are designed to be misleading and rip-off small businesses. Anyone who receives one should exercise caution. If in doubt, they should contact the "Scambusters" team at the Office of Fair Trading.

"I have been contacted by a number of constituents about such scams and I am pleased to say that to my knowledge, no-one has ever been forced to pay out. However, the threat and worry that they cause businesses at an already stressful time is appalling."

Companies like the European City Guide exploit a loophole in fair advertising laws by operating across borders. Fiona is calling for EU action to crack down on these scamsters.

She said:

"This is another example of how European cooperation can benefit us here in the North East. I want the EU to take action to protect small businesses in my constituency and around Europe."

Ends.