Nationalist MEP Simon Busuttil is exerting pressure on the EU to take a strong stand against misleading business directories.
Addressing the Petitions Committee of the European Parliament Dr Busuttil publicly named the European City Guide, Construct Data, Novachannel, EU Business Services, Intercable, EXPO guide and DAD as some of the companies involved in such fraudulent practices.
“We need to change European legislation to cut the fraudulent industry of misleading directory companies from its roots,” Dr Busuttil told his fellow MEPs.
“Vulnerable organisations, small businesses and professionals need our protection from the misleading practices of certain directory companies. We must show them that European Law is there for everyone to follow and respect. According to EU Law such fraudulent practices must not be tolerated.”
Companies operating in this field normally send out forms that ask businesses to simply update their details free of charge for a listing in their directory publication. However what people fail to recognise is the very small print at the bottom of the page which declares that signing such a form binds the individual into a three year contract involving an annual payment of €1,000 per year.
The European Commission has already confirmed that such practices are against EU law. Nonetheless the cross-border dimension of this fraud makes it very difficult for the victims to pursue the fraudsters. According to Dr Busuttil this is creating a situation whereby citizens do not have the adequate tools to enforce their rights.
Dr Busuttil asked the Commission to step up its action in finding not just a legal, but also a practical solution to the problem.
The Commission will be reviewing the Misleading and Comparative Advertising Directive by the end of the year with a view to analysing all possible options to protect businesses in Europe, including the possible insertion of a specific provision to prevent the fraudulent practices of misleading business directories.
The Commission is also considering enforcement cooperation tools aimed at solving the problem of cross-border enforcement.