October 15, 2009Businesses are being warned to watch out for unsolicited emails or letters which claim to offer ‘free’ business directory listings.
Australian Competition and Consumer Commission (ACCC) Chairman Graeme Samuel warns some offers appear to be nothing more than scams.
"More than 1,000 complaints and inquiries have been received this year by ACCC about these types of offers," he says.
Recent complaints received by the ACCC relate to unsolicited emails sent by two overseas-based businesses, World Business Guide and World Business Directory.
Websites operated by these businesses include: www.world-businessguide.com and www.world-businessdirectory.com.
"In this instance, the ACCC believes it is appropriate to name the businesses involved. This is not a decision that ACCC has taken lightly," Samuel says.
"Many legitimate businesses located overseas provide goods and services to Australian businesses. However, unscrupulous traders can try to take advantage of overseas locations to target businesses in other countries to perpetrate scams, and frustrate the efforts of consumer protection law enforcement bodies,” he says.
"From the ACCC’s investigations, it appears that World Business Guide and World Business Directory are using virtual office services or post office boxes across several countries including the Netherlands, Spain, United Kingdom, West Indies and Eastern Europe.”
World Business Guide and World Business Directory send emails asking the recipient to print and complete a form so that their business details can be updated.
The emails state that 'updating is free of charge'.
The ACCC warns Australian businesses that the services purportedly being offered appear to be useless and businesses who return forms will be chased with threatening correspondence for significant sums of money.
"If the attached form is returned, these operators will claim to be entitled to significant sums of money," Samuel says.
It appears that the scam operates in the hope that businesses will automatically process any payments without inquiry.
Businesses who question an invoice after having returned the form, are told that a legally binding contact exists which must be paid.
Threats of debt recovery action usually follow in the hope of extracting money from the business.
Businesses receiving such invoices, or which have paid money after receiving an invoice, can report it through the
SCAMwatch website or contact the ACCC Infocentre on 1300 302 502.
Sending unsolicited commercial emails (spam) is prohibited under the
Spam Act 2003.
Businesses can report commercial spam to the Australian Communications and Media Authority (ACMA) via its
website or call ACMA on 1300 855 180.