An advertising scam which affected many European businesses, including several Maltese companies, was discussed during a consultation meeting between Nationalist MEP Simon Busuttil and representatives of national chambers of commerce and the European body of chambers, Eurochambre.
This discussion was held with the purpose of sharing best practices and drawing up solutions, taking into consideration the needs and experiences of businesses that are members of the chamber. The focus was on the European City Guide scam on which Dr Busuttil has been appointed rapporteur of the European Parliament. Dr Busuttil said he was adopting a four-tier approach to tackle this problem. This is based on increasing the awareness of directory scams, providing a solution for victims, taking action using the current legal instruments available and exploring the possibilities of updating EU laws to cater for these specific situations.
The effects of such scams were also discussed.
Representatives of various chambers pointed out situations where victims were embarrassed to admit that they had fallen for the scam, especially if they were employees. Moreover, it was pointed out that such scams were also targeting employees by sending offers during times when employers were on holiday.
It was also stated that the majority of companies targeted were SMEs involved in services, manufacturing and retail. The participants took the opportunity to present the situation in their respective countries and also to propose solutions. A representative of the German chamber stated that judges and courts needed to be made more aware of the significance of such scams.
Austria was mentioned as the member state which is most advanced in tackling such scams, as Austrian law provides a specific provision on unfair commercial practices which covers illegitimate directories. Austria also has a specialised association which has solved a lot of such cases based on this provision. The need for increasing cooperation between consumer authorities was also emphasised, even due to the fact that such scams are expanding to new countries, also outside of the EU.
The meeting was also attended by representatives of advertising standards and marketing groups and also by representatives of legitimate business directories.
As rapporteur, Dr Busuttil is receiving many complaints concerning the European City Guide and similar misleading business directories. His report is expected to be presented to the European Parliament before the end of this year.
About business directory scams
The European City Guide scheme mostly targets small- to medium-sized businesses, but non-profit entities, such as schools, libraries and even band clubs are also known to fall victims.
The scheme relies on misleading advertising whereby it gives businesses the impression that it will advertise their company details free of charge, in its business directory. Subsequently, however, on the basis of "small print" in the form signed, the European City Guide demands payments in the region of €1,000.
The scheme also takes advantage of legal loopholes which make it difficult for national authorities in various member states to take action, as they do not have the authority to act across European borders.
People who have fallen victim to the scam may contact Dr Busuttil by e-mail through his website at www.simonbusuttil.eu.
This discussion was held with the purpose of sharing best practices and drawing up solutions, taking into consideration the needs and experiences of businesses that are members of the chamber. The focus was on the European City Guide scam on which Dr Busuttil has been appointed rapporteur of the European Parliament. Dr Busuttil said he was adopting a four-tier approach to tackle this problem. This is based on increasing the awareness of directory scams, providing a solution for victims, taking action using the current legal instruments available and exploring the possibilities of updating EU laws to cater for these specific situations.
The effects of such scams were also discussed.
Representatives of various chambers pointed out situations where victims were embarrassed to admit that they had fallen for the scam, especially if they were employees. Moreover, it was pointed out that such scams were also targeting employees by sending offers during times when employers were on holiday.
It was also stated that the majority of companies targeted were SMEs involved in services, manufacturing and retail. The participants took the opportunity to present the situation in their respective countries and also to propose solutions. A representative of the German chamber stated that judges and courts needed to be made more aware of the significance of such scams.
Austria was mentioned as the member state which is most advanced in tackling such scams, as Austrian law provides a specific provision on unfair commercial practices which covers illegitimate directories. Austria also has a specialised association which has solved a lot of such cases based on this provision. The need for increasing cooperation between consumer authorities was also emphasised, even due to the fact that such scams are expanding to new countries, also outside of the EU.
The meeting was also attended by representatives of advertising standards and marketing groups and also by representatives of legitimate business directories.
As rapporteur, Dr Busuttil is receiving many complaints concerning the European City Guide and similar misleading business directories. His report is expected to be presented to the European Parliament before the end of this year.
About business directory scams
The European City Guide scheme mostly targets small- to medium-sized businesses, but non-profit entities, such as schools, libraries and even band clubs are also known to fall victims.
The scheme relies on misleading advertising whereby it gives businesses the impression that it will advertise their company details free of charge, in its business directory. Subsequently, however, on the basis of "small print" in the form signed, the European City Guide demands payments in the region of €1,000.
The scheme also takes advantage of legal loopholes which make it difficult for national authorities in various member states to take action, as they do not have the authority to act across European borders.
People who have fallen victim to the scam may contact Dr Busuttil by e-mail through his website at www.simonbusuttil.eu.