The European Commission will be reviewing the Misleading and Comparative Advertising Directive to analyse options to protect business in Europe.

MEP Simon Busuttil said during a Petitions Committee follow-up session of his report on misleading business directories earlier this week that European legislation was needed to cut the fraudulent industry of misleading directory companies from its roots.

"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,” he stressed

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.

These companies send out forms that ask recipients to update their details free of charge for a listing in their directory publication.

However, the very small print at the bottom of the page declares that signing such a form engages the individual into a three-year contract involving an annual payment of €1,000 per year.

"Even MEPs have received these forms. This industry truly has no shame," he told the committee.

The European Commission 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 creates 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 a legal and practical solution to the problem.

"Too many people are still ending up victims of this scam. Too many people are being harassed every day by legal letters from these companies."

The Commission said it will be reviewing the directive by the end of the year to analyse all possible options to protect business in Europe, including the possible insertion of a specific provision to prevent the fraudulent practices of misleading business directories.

It pledged to consider enforcement cooperation tools that would be aimed at solving the problem of cross-border enforcement.