Businessmen caught up in alleged scam

Maltese businessmen were among thousands across Europe who unwittingly entered into a binding contract after being allegedly duped by a company in Spain.

The company, 'The European City Guide', distributes a straightforward questionnaire to companies. Recipients are told that the company is compiling the information for the purposes of an internet-based European city guide but only in very small text does it say that they are entering into a contract to advertise in the guide.

An owner of various shops in Malta, Philip Sorace, said that there was a big movement against this company; people across Europe were fighting the activity and there are even various websites advising people how to go about this.

"I am one of the businessmen who was tricked by this activity. They sent me an unsolicited letter last year that, to all intents and purposes, appeared to be a request for information about my company.

He claimed it turned out to be a deceitful disguised contract "and since then, they have started demanding money from me." He felt there was no doubt that the original letter was laid out to deceive.

In Britain, there have been press reports about the guide in different media, including the BBC and The Telegraph.

One report in The Telegraph states that standard officers are supporting organisations, including charities, which are resisting demands for payments of up to £1,000 for appearing in a European directory of business, trade and cultural services.

Many of those featured in the UK section of the 1,200-page 1st European City Guide say that they signed unsolicited faxes or forms without realising that the small print committed them to a charge.

Mr Sorace said he had made it clear that he did not require their services. But they would simply not take no for an answer.

"I started receiving bills and reminders for a service I never wanted. Businessmen involved in the retail and import-related areas receive many questionnaires from suppliers and wholesalers. Filling in a questionnaire is the norm of the day. Binding contracts are normally of a different nature."

Mr Sorace said he was aware of several other Maltese businessmen who had fallen into the same trap.

"It is very important that you do not pay them any money. I am aware that some have already issued payments. This company has tricked over 35,000 people and most of us are refusing to pay. To date, while they have used all sorts of threats, they have never taken anyone to court."

Mr Sorace said he had received several bills amounting to over Lm600 which he is refusing to pay.

His lawyers have also written to the company, based in Barcelona, stating he would not pay since he gave them prompt notice of cancellation following their first letter of notice. Any other legal matters, the lawyers said, would be raised at an appropriate forum.

However, Mr Sorace said the Spanish company had ignored letters sent by his lawyers. "But at the same time they keep sending me reminders to pay them the money."