WA businesses victims of dodgy directory deal
Issue Date: - Friday, 6 November 2009
WA businesses have been approached by unscrupulous overseas operators offering an expensive business directory listing under the guise of a free listing.
Many businesses have been receiving offers by email and letter from “World Business Directory” and “World Business Guide”, and filling out and signing a form that they believe will provide a free listing but is, in fact, an expensive three-year contract.
Commissioner for Consumer Protection Anne Driscoll said this is the latest in a series of scams that target business owners.
“The form is quite deceptive as it highlights the updating of company details is free of charge but, when you read the fine print, the business is actually committing itself to a huge “insertion fee” of 995 Euros a year,” Ms Driscoll said.
“Companies that have returned the form are then sent invoices, followed by threats of debt collection fees if they are not paid, in the hope of extracting money from them.
“The offer can easily trick people into thinking they are getting something for free rather than signing up to a very expensive contract.
“Our strong recommendation to business owners is to exercise caution when approached with unsolicited offers of free listings in business directories and always read the fine print before signing.”
An investigation by the Australian Competition and Consumer Commission (ACCC) found World Business Directory and World Business Guide are using virtual office services or post office boxes in several countries including the Netherlands, Spain, United Kingdom, West Indies and Eastern Europe.
“It would appear that the perpetrators of this scam hope that the signatories pay the invoice without question,” Ms Driscoll said.
Consumer Protection recently issued a warning about another scam targeting WA businesses where bogus invoices were being received seeking substantial sums be sent to Trade Mark Publishers for on-line registration of company trademarks.
“It appears from their website that 1,700 Australian businesses mistakenly paid these invoices, which indicates the overseas scam operators have reaped more than two million dollars,” Ms Driscoll said.
Business owners who are concerned should contact Consumer Protection on 1300 30 40 54 or consumer@commerce.wa.gov.au
More information about scams is available from the WA ScamNet website at www.commerce.wa.gov.au/wascamnet.
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Media Contact: Alan Hynd
9282 0961 or 0429-078791 alan.hynd@commerce.wa.gov.au