Business scams victims want EP to act
The saga concerning thousands of businesses that are falling victim to EU-wide advertising scams was again the centre of attention during a public hearing organised at the European Parliament by Nationalist MEP Simon Busuttil. A number of victims,...
The saga concerning thousands of businesses that are falling victim to EU-wide advertising scams was again the centre of attention during a public hearing organised at the European Parliament by Nationalist MEP Simon Busuttil.
A number of victims, including Maltese businessmen, gave a personal account of how they were "deceived" by companies promoting supposedly free schemes of advertising and finding out later that they had entered into binding contracts and had to pay hundreds of euros to these directory companies.
The victims insisted with the Petitions Committee of the European Parliament to make sure that the EU intervenes even through specific legislation to make sure that these unfair schemes are outlawed.
During the public hearing entitled Stop The Scam: Combating Misleading Business Directories, many victims stated that the scam had left psychological distress on them and their families after having been chased and threatened by the business directories to pay up.
However, representatives of the European City Guide, one of the directories implicated in this issue, insisted that they were acting within the laws of the country they operated from, namely Spain. They also claimed that they had a lot of satisfied customers and that the number of complainants who did not want to pay up was relatively small.
Officials from the European Commission agreed that some form of action needs to be taken but opined that rather than enacting new laws, better enforcement of existing ones was required.
Addressing participants, MEP Simon Busuttil warned that businessmen should not sign up to unsolicited offers.
"If you feel that you are a victim of a scam you should not pay up until seeking advice," he told the businessmen present.
Dr Busuttil is currently drawing up a report for the European Parliament on combating misleading business directories. His report will be presented to the European Parliament's Petitions Committee in the coming days and adopted by the plenary of the house before the end of this year.
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 victim to scams.
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, 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.
A number of victims, including Maltese businessmen, gave a personal account of how they were "deceived" by companies promoting supposedly free schemes of advertising and finding out later that they had entered into binding contracts and had to pay hundreds of euros to these directory companies.
The victims insisted with the Petitions Committee of the European Parliament to make sure that the EU intervenes even through specific legislation to make sure that these unfair schemes are outlawed.
During the public hearing entitled Stop The Scam: Combating Misleading Business Directories, many victims stated that the scam had left psychological distress on them and their families after having been chased and threatened by the business directories to pay up.
However, representatives of the European City Guide, one of the directories implicated in this issue, insisted that they were acting within the laws of the country they operated from, namely Spain. They also claimed that they had a lot of satisfied customers and that the number of complainants who did not want to pay up was relatively small.
Officials from the European Commission agreed that some form of action needs to be taken but opined that rather than enacting new laws, better enforcement of existing ones was required.
Addressing participants, MEP Simon Busuttil warned that businessmen should not sign up to unsolicited offers.
"If you feel that you are a victim of a scam you should not pay up until seeking advice," he told the businessmen present.
Dr Busuttil is currently drawing up a report for the European Parliament on combating misleading business directories. His report will be presented to the European Parliament's Petitions Committee in the coming days and adopted by the plenary of the house before the end of this year.
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 victim to scams.
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, 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.