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OFT takes court action against mail order company in the Netherlands

137/06    20 September 2006

The OFT has initiated court action against Dutch company, Best Sales B.V. trading as Best Of and Oliveal.

Court proceedings have been issued to stop the mail order company sending what the OFT considers to be misleading mailings to UK consumers. This is the first time the OFT has used its cross-border powers to take court action in the Netherlands. The hearing has been scheduled for 10 October 2006 before the Dutch court.

Best Sales B.V. trading as Best Of and Oliveal, has been sending unsolicited mailings to UK residents offering household goods and health remedies by direct mail. The OFT believes that the mailings are misleading since they appear to notify UK consumers of a large prize win, typically £5,900 or £10,000. The OFT considers that the mailings imply that to receive a large prize, or in order to receive this prize faster, the consumer has to make a purchase from an accompanying catalogue. However, the OFT believes that respondents are in fact only taking part in a prize draw and may not have won anything, except a voucher for £1 off future orders.
 
Court action has been initiated because Best Sales B.V. have failed to comply with the OFT's requests to sign Undertakings that will prevent them sending UK consumers misleading mailings, and agree to comply with the Misleading Advertising Directive.

The OFT has obtained binding undertakings from Mr Van Gils, a previous director of Best Sales B.V., personally and on behalf of Good Hope B.V. which was trading under the names Ephedra and Festival Shopping, and from Mr Jansen, a previous director of Best Sales B.V. in relation to contraventions of the Dutch and UK implementations of the Misleading Advertising Directive. If the undertakings are breached, the OFT can seek a court injunction.

Christine Wade, OFT Director of Consumer Regulation and Enforcement said:

'This case demonstrates the OFT's determination to protect consumers from potentially unscrupulous businesses both in the UK and abroad. The Scambusters team now have the powers to take action outside the UK and will not hesitate to use these powers when necessary.'

Consumers who suspect they may have received a misleading mailing should call Consumer Direct for clear, practical consumer advice on 08454 04 05 06 or visit the Consumer Direct website.

NOTES

1. A writ has been laid before court in Holland for breaches of the Dutch and/or UK implementation of the Misleading Advertising Directive.

2. Part 8 of the Enterprise Act 2002 gives effect to the Injunctions Directive in the UK and gives the OFT, other general enforcers and designated enforcers which are public bodies, the power to take action against businesses in certain other European countries that are infringing certain European-based consumer protection legislation, such as legislation implementing the Misleading Advertising Directive. When a business based in another EU country harms the collective interests of UK consumers, the OFT will normally ask the relevant community enforcer to take enforcement action.

3. Council Directive 84/450/EEC on Misleading Advertising provides protection against misleading and unacceptable comparative advertisements. Under the directive, an advertisement is misleading if it 'in any way, including its presentation, deceives or is likely to deceive the persons to whom it is addressed or whom it reaches and which, by reason of its deceptive nature, is likely to affect their economic behaviour or which, for those reasons, injures or is likely to injure a competitor'.

4. The OFT has identified scams as a priority area for the next three years and last year launched the 'Scambusters' team to deliver the OFT's strategy of enforcement, consumer education and cooperation with public and private sector bodies (see press release 175/05).

5. Consumer Direct is a telephone and online consumer advice service funded by government and managed by the Office of Fair Trading. It offers consumers clear, practical and impartial advice and information.

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