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ACCC WARNS ABOUT SCAM BUSINESS DIRECTORY OFFERS
ACCC WARNS ABOUT SCAM BUSINESS DIRECTORY OFFERS
By ACCC on October 20, 2009
Businesses have been warned to watch out for unsolicited emails orletters which claim to offer 'free' business directory listings.
The Australian Competition and Consumer Commissionwarns that some offers appear to be nothing more than scams.
"More than 1,000 complaints and inquiries have beenreceived this year by ACCC about these types of offers," ACCC Chairman,Graeme Samuel, said today.
Recent complaintsreceived by the ACCC relate to unsolicited emails sent by twooverseas-based businesses, World Business Guide and World BusinessDirectory. Websites operated by these businesses include:
"In this instance, the ACCCbelieves it is appropriate to name the businesses involved. This is nota decision that ACCC has taken lightly," Mr Samuel said.
"Many legitimate businesses located overseas providegoods and services to Australian businesses. However, unscrupuloustraders can try to take advantage of overseas locations to targetbusinesses in other countries to perpetrate scams, and frustrate theefforts of consumer protection law enforcement bodies.
"From the ACCC’s investigations, it appearsthat World Business Guide and World Business Directory are usingvirtual office services or post office boxes across several countriesincluding the Netherlands, Spain, United Kingdom, West Indies andEastern Europe.
"The use of automated mailforwarding services can unfortunately make it almost impossible tolocate where a business is really situated. This is of particularconcern given that these businesses are using, what the ACCC believesto be blatantly unfair tactics in an attempt to trick Australianbusinesses into subscribing to their services."
World Business Guide and World Business Directory send emailsasking the recipient to print and complete a form so that theirbusiness details can be updated. The emails state that 'Updating isfree of charge'.
The ACCC warns Australianbusinesses that the services purportedly being offered appear to beuseless and businesses who return forms will be chased with threateningcorrespondence for significant sums of money.
"If the attached form is returned, these operators will claim tobe entitled to significant sums of money," Mr Samuel said.
It appears that the scam operates in the hope thatbusinesses will automatically process any payments without inquiry.Businesses who question an invoice after having returned the form, aretold that a legally binding contact exists which must be paid. Threatsof debt recovery action usually follow in the hope of extracting moneyfrom the business. The ACCC is not aware of any instances where anydebt recovery proceedings have been instituted against Australianbusinesses.
The ACCC's website, SCAMwatchwww.scamwatch.gov.au, offers a range of information and advice onscams. Above all, the ACCC strongly encourages businesses:
- To be very wary of unsolicited offers, particularlythose claiming to provide a free service
- Beforeresponding to any offer, to make sure you know who you are dealingwith. Do an internet search on the name of the product/company, verifyany contact and company details
- To look into thelegitimacy of the directory – for example, ask for details ofother local businesses who have previously advertised and check withthem that they received what they paid for
- Toread all the terms and conditions and fine print
- To retain written records of authorisations for advertising ordirectory entries so that if you receive an invoice or a telephonecall, you can go back to your records to check it
- To ensure that only authorised employees are responsible forpayments and they should have ready access to important dates andsuppliers. Update them on any scam or unsolicited service that may betargeting businesses, and
- To alert your industryassociation or local business advisor about any offers that you thinkmay be untoward or misleading. They may be able to warn others in yournetwork.
Media inquiries Mr Graeme Samuel, chairman, (03) 9290 1812 or0408 335 555
Ms Lin Enright, director, media unit, (02) 6243 1108 or 0414613 520
General inquiries
Infocentre: 1300 302502
NR 257/09
15 October 2009