Cold calling business directors give OFT undertakings

77/06 13 April 2006

The OFT has received undertakings from the former directors of Cavendish Black Ltd and McAllister Stone Ltd, two publishing companies that were selling advertising space to small traders by making what were in the OFT’s view misleading claims.

Although the DTI has put both companies into compulsory liquidation, the OFT has secured undertakings from the directors of the companies that regulate their future conduct.

Cavendish Black Ltd and McAllister Stone Ltd had both been cold calling small traders across the UK asking if they wanted to advertise in magazines and, in the OFT’s opinion, giving the misleading impression that they were connected to the Police and emergency services in that area and that some traders had placed advertisements when they had not.

Tony Williams, Stephen Williams, Martin Cumine and Christopher Hanley all gave undertakings, under the Control of Misleading Advertising Regulations 1988, that they would not in future:

give the impression that a trader had placed or requested an advert in a publication when this was not the case
give the impression that a business is connected to the police or emergency services when it is not
give the impression that a publication is produced in conjunction with the police or emergency services when it is not.

Each of the directors denies that the advertisements were misleading.

John Fingleton, OFT Chief Executive, said:

'Although the two companies have already been put into compulsory liquidation, these undertakings will regulate the conduct of the individuals concerned in any future business dealings they have. If they breach the undertakings we have the powers to get an injunction in the courts.'
The OFT was pleased to have been able to work closely with Wirral Trading Standards in collecting evidence for this case.

NOTES

1. The undertakings were signed between 6 December 2005 and 10 February 2006.

2. The Control of Misleading Advertisements Regulations 1988 (CMARs) came into force on 20 June 1988 implementing an EC Directive on misleading advertising. The OFT’s powers under the CMARs are triggered if an advertisement is misleading (i.e. it must deceive or be likely to deceive the recipient and affect their economic behaviour, or for those reasons, harm the interests of a competitor), and is published in connection with a trade, business, craft or profession, in order to promote the supply or transfer of goods or services, immovable property, rights or obligations. The OFT can take action against anyone appearing to be concerned or likely to be concerned with the publication of a misleading advertisement.

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