Local Euro MP welcomes determination to end directory scam

1.17.31pm UTC (GMT +0000) Thu 9th Oct 2008

Diana Wallis, Liberal Democrat MEP for Yorkshire & Humber, has welcomed a vote in the European Parliament's Internal Market & Consumer Protection Committee on countering the long running scam of misleading directory companies.

The scam involves the mailing of millions of forms to small businesses which offer to update their details in a business directory. Those who reply are stung with a large invoice, claiming that the victim had agreed to a costly contract hidden within the small print of the form. It is estimated that this scam has been ongoing for over forty years and to have claimed hundreds of thousands of Europeans as victims.

The Committee overwhelmingly backed Ms. Wallis's opinion which set out clear requests to the European Commission and the Member States to work together to stamp out this practice.

Speaking after the vote, Mrs Wallis said:

"I have received many letters from constituents right across Yorkshire & the Humber who have been caught out by this scam. Even schools and charities have been victims. One nursery school in Huddersfield was ruthlessly pursued by the perpetrators of this scam for months. For victims, the pursuit of this money is often a life destroying experience.

"MEPs have shown that we are all tired of the endless buck-passing between the Commission and Member States. Something must be done to stop this practice, and we have identified real opportunities for doing so. It is now down to the Commission and Member States to act."

Ms. Wallis's opinion also called for the Commission to investigate real legislative options identified by the Committee which could end this practice for good. This includes making it clear that existing legislation on misleading advertising also applies to directory scams by including them in a "blacklist" of misleading practices. The opinion also asks for the Commission to investigate a specific extension to recent legislation on unfair commercial practices, which already gives some protection to individual consumers but not small businesses, so that it also protects businesses from these scams.

Following the adoption of the opinion in the Internal Market & Consumer Protection Committee, the report will be considered in the European Parliament's Committee on Petitions, with a Plenary vote expected by the end of the year.