Business advice

There is a wealth of information and guidance for businesses on the main Trading Standards website.

Publishing and marketing scams

Most publishers are reputable, providing a valuable service to many businesses. Rogue 'publishers' can make vast amounts of money by inducing victims to pay for adverts in publications that either do not exist or are not what people are led to believe. Although financial losses to individual businesses are not usually large, some of the tactics used by rogue publishers (particularly when chasing payments) often cause genuine alarm.

Small or new businesses are usually targeted and telesales operatives use deliberately misleading chat that is often carefully scripted to sell advertising space in various types of publications, these may be wall planners, yearbooks, crime prevention, drugs awareness booklets etc.

Costs usually range from about £100 to £1,000. Sometimes it is claimed the publication is being produced on behalf of some worthy cause or that proceeds will go to charity. In reality some of these rogue 'publishers' produce nothing at all and, although some may produce a few copies of the publication, these are not circulated in sufficient numbers or in the right areas to be of any practical benefit to the advertisers.

Common publishing scams

Bogus invoice scam

The simplest and most blatant scam is that, without any prior contact, bogus invoices are sent to businesses for adverts in fictitious publications. This is a very crude hit and miss approach but you may be surprised at the number of victims who pay an invoice without question, particularly if the amount involved is relatively small.

Repeat business scam

The target business is contacted by phone or letter and the victim is asked if he/she wishes to place an advert in the next edition of a publication which he/she is falsely informed that the business has advertised in before (the likelihood being that there was no previous edition). In some instances where the approach is by letter, photocopies of adverts taken from publications like Yellow Pages are included to lend an air of authenticity.

Credibility scams

In order to give their supposed publication respectability and appeal, most rogue publishers will claim some connection with a worthy cause or charity.

Charity booklets

Some rogue publishers do produce booklets and pamphlets on behalf of registered charities. Some unscrupulous publishers only produce a small amount of these and many of the adverts, for which they have taken payment, never appear in print.

Others will claim that part of the revenue generated by their publication will be donated to a specific charity with which they claim affiliation and whose name is used to entice advertisers. Often only a tiny fraction of the money the publisher receives ends up with the charity involved. That in itself is not illegal, but many victims who agree to place an advert because they feel they are making a contribution to charity might not do so if they knew how much was going straight into the pockets of the publishers involved.

Crime prevention 'yearbooks'

Rogue 'publishers' may claim that these are being produced in conjunction with agencies such as the police or fire service when in reality they have no involvement at all.

'Drug awareness' or 'youth action' booklets

Rogue 'publishers' often claim that these will be distributed in schools and colleges. The key question to ask is which schools and colleges because for most small businesses, that form of advertising is only effective the booklets are distributed in their local area.

Debt collection

Irrespective of which of the above tactics are used, once a victim has received an invoice from a rogue publisher it is almost certain that they will be pursued for the money. Some victims pay up even though they feel they have been 'conned' because they believe it is not worth the time and effort to take a stand. The likelihood is that they will be identified as easy prey and will be targeted again. Some rogue publishers chase payment through 'debt collection agencies', but these are often owned by the publishers themselves, sometimes run from the same premises.

What you can do

Below are some actions you could consider taking which might prevent you from becoming the victim of a publishing scam, or if you believe you have already being targeted by a rogue publishing company.

Telephone calls

Do not agree to place an advert over the telephone unless you are absolutely sure about the publisher you are dealing with. Insist on seeing written details and a copy of the publisher's full terms and conditions before placing an order. Some victims have received a string of calls that have become increasingly threatening and abusive.

Try to keep a record of such calls - time, date, name of caller, and a note of what was said. Any caller should identify themselves and the company from which they are calling. Be particularly wary if the initial caller transfers you to someone else during the call and always ask the next person you speak to for their name, the name of the company, in which department they work and their contact number. If the person you are speaking to cannot, or will not, provide these details, or if they become abusive, hang up. In relation to the recording of telephone calls, you should be able to request a copy of the recording if it is claimed one of your employees placed a definite order.

Demand letters

If you receive demands for payments for something you believe you have not ordered, it is well worth taking a few minutes to send a written reply, stating clearly why you feel you do not owe any money. Always send by recorded delivery and keep a copy for your records.

Threats of court action

It is useful to remember that it would cost the rogue publisher money to take you to court, often much more than it claims you owe. The rogue publisher will have to prove that you owe the money before the court can make a decision against you, and you will have the chance to defend yourself. The last thing the rogue publisher will want is for its 'dodgy' tactics to be paraded before a court. Rogue publishers will not spend too much money chasing a debt; they are much more likely to look for another victim who will pay up without a fuss.

Other marketing scams

Data protection registration

Thousands of businesses have received letters from companies asking for payment for registration under the Data Protection Act. Such letters give the impression that they come from an official body and that you are legally obliged to register immediately - at a cost of up to £100, plus VAT.

While many businesses processing personal data are required by law to notify the Information Commissioner's Office, they can do so directly for a fee of £35 per year. Often, small firms that process such data for limited purposes are exempt from notification altogether.

For more information call the helpline on 01625 545745.

Business directories

Another regular scam relates to business listings either in published directories, electronic directories or on websites. Beware of official-looking invoices from trade directories asking for your fax, internet and email details. These might appear to be simple requests inviting a free listing but read any small print commitments to pay hundreds of pounds for an entry. If the directory is actually published, there may be no criminal offence and an enforceable contract in place.

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