The European City Guide scam

Some months ago, a gentleman came up to me seeking advice regarding a letter he had received from a company claiming he owed them some €900. As I unfolded the letter and got a glimpse of the logo, I knew it was yet another European City Guide scam.

This Spanish company, and its "questionable" marketing tactics, have been around for years now. Nevertheless, they seem to continue managing to con people into paying them hundreds of euros through this scam.

As a member of the European Parliament's internal market and consumer protection committee I felt in duty bound to bring the case once again to the attention of the European Commission. The Commission is well aware of this scheme and has pledged to call on the Spanish authorities to take further action against this company, which had already been temporarily suspended from trading by a Catalan court.

After my initiative was reported in the consumer columns of various newspapers I was contacted by many more people who had fallen victims to the scam.

The scam is refined and one which has deceived thousands of businessmen and organisations across Europe. Many of them have filled in, signed and returned the letter they received, believing they would be entitled to free advertising space on this guide.

Nevertheless, the extremely small, and well concealed, wording on the same paper they signed enters them into a contract with the Guide. After a few days, these people would get an invoice and a notice that if they wish to contest the payment, they should do so in writing within four days. Of course, it is highly unlikely that a letter of protest can reach Spain within four days, given that one manages to get the letter sent on the same day. A second, strongly worded letter arrives a few days later and the invoice total starts increasing at an abominable rate.

The best way to avoid this and other scams is not to sign anything that offers you an exceptionally good deal for free. At least, one should read very carefully before signing.

If you have already signed the letter and received the invoice, do not pay. Report the case immediately to the Consumer Affairs Department. If one pays, one is practically accepting the contract and this undermines one's legal standing. In 2003, the Spanish courts had already ruled that the European City Guide's contracts are deceitful. Further cases are underway challenging the fact that, although the signed form is a legal contract, the client has been deceived into entering it.

Many times, the Guide offers its "clients" reduced payments. Nevertheless, once they pay, they keep receiving more bills.

It is also important to note that the contract signed by the victim states that it will renew itself year after year until the European City Guide is informed in writing within three months from the end of the third year to stop the contract. So the least that those people who have already paid can do is to write immediately to stop the contract while saying that this does not mean one is accepting the validity of the contract. Obviously, send the letter by registered mail.

One might be encouraged by the fact that to date the European City Guide has never taken any of its non-paying "clients" to court despite the many warnings of legal action it issues on a daily basis.

As I have already said, I got a commitment from the European Commission that they will bring the issue once again to the attention of the Spanish authorities. The stronger the pressure, the better. One would also suggest that victims of this scam contact directly the Valencia authorities, where the European City Guide is currently registered. The addresses where one should send the complaints and copies of the full correspondence are: Dirección General de Comercio, C/ Colón, 32, 46004 Valencia, Spain and the Instituto Nacional del Consumo, C/ Principe de Vergara 54, E-28006 Madrid, Spain.

Once you receive a reply, write to the European City Guide, enclosing the reply, and saying that you consider the issue suspended until the Valencia authorities rule on the case.

A website that has been created against this scam, www.stopecg.org reports that "At some point the Guide will hand your file over to the Swiss or Austrian debt collection agencies they use. This is where it gets unpleasant. Expect to be bombarded with letters, faxes and even direct phone calls. They may state that your credit rating will be damaged. This is a lie. You will need to be firm. If you feel the pressure is getting to you please remember the reasons why you should not pay. People who have refused to pay have found their files passed back to the ECG. At some point they must give up!"

This website provides important help to victims of this scam, including standard letters that need to be sent to the various entities.

I do encourage all those who have fallen victim to take the necessary action and get in touch if they need further assistance.

Mr Muscat is a Labour member of the European Parliament, where he sits on the economic and monetary affairs committee and the internal market and consumer protection committee.

www.josephmuscat.com