European City Guide shut down

PN 124/03 24 September 2003

A Spanish company that misled UK businesses into paying for adverts in its directory has been shut down and fined by a Catalan court.

The court ruled that European City Guide, based in Barcelona, was to be temporarily shut down for one year and fined €300,000 (over £200,000) for its deceitful advertising. Over the last four years the Catalan authorities have received more than 3,500 complaints from companies and professionals in 40 European countries about European City Guide.

The penalties come after European City Guide sent mailshots to mostly British and French companies. The mailings gave the impression that the directory entries were free. However, the small print meant that the businesses which signed and returned an enclosed form – even if simply correcting or adding to the details provided – were committed to paying up to £1,455 for three entries and a copy of the European City Guide directory. The OFT received complaints from over 280 British businesses which claimed they had been misled by the company's mailshots.

European City Guide was originally found to have infringed Catalan laws on misleading advertising in March 2001. This followed cooperation between the Catalan authorities and the OFT. The present sanctions come after European City Guide's appeal against an earlier ruling by the Spanish court was rejected.

John Vickers, OFT Chairman, said: 'This case shows how international cooperation can help protect British business against deceptive practices. We urge businesses to be alert against practices of this sort.'

NOTES

1. The Control of Misleading Advertisements Regulations 1988, which implemented an EC Directive, seek to protect consumers and traders from the effects of misleading advertising. Under these Regulations, the OFT can seek a court injunction to put a stop to advertisements which are against the public interest. However, effectively using these powers against businesses that are based abroad but are advertising in the UK is difficult. Therefore, in this instance, the OFT sought the co-operation of the Catalan authorities.

2. The original ruling by the Catalan authorities was made on 28 March 2001 (see PN 13/01). European City Guide appealed and this was dismissed in June 2002 (see PN 37/02).

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