SUCCESSFUL PROSECUTION OF FALSE BILLERS, BUT BUSINESS OWNERS MUST REMAIN ALERT
Unscrupulous telemarketers have been targetting businesses, including those of our bed and breakfast and farmstay and other hosted accommodation members, for years. These people seek to have you purchase advertisements in dubious publications. In this regard, in 2007 BBFA reported that the Supreme Court of New South Wales had issued interim injunctions relating to the alleged false billing activity of Kent Publishing and Dean James King.
This judgement and the circumstances leading to the Commission for Fair Trading in NSW’s prosecution are detailed on the BBFA website, Kent Publishing - False Billing.
In a Final Hearing last month, the Supreme Court made orders permanently restraining Kent Publishing and Dean James King in regards to the conduct of its business in the telemarketing and publishing industry. The orders made are such that this organisation will not be able to conduct its business in the misleading and deceptive manner as it did previously.
The full terms of the Court Order can be downloaded from the BBFA website. The consequences if Kent Publishing disobeys the Court Order are that Dean James King and Kent Publishing Pty Ltd will be liable to sequestration of property and Dean James King to imprisonment.
Robert Evans of the Investigation Branch of the OFT-NSW warns that while it is thought that Kent Publishing were the largest of the known false billing businesses, earning millions of dollars during its existence, there are numerous other operations and business owners must remain alert.
Robert is confident that most small businesses will be contacted by these unscrupulous organisations at some stage. He reports that small businesses are targeted due to the naivety of persons new to business and the fact that small business operators are generally too busy to verify what they are being told over the phone. Most small businesses scammed do not generally realise that they have been deceived.
Unfortunately once you are scammed your organization will generally receive further similar phone calls from other bogus publications. There is a real possibility that false billers swap, or buy each other’s lists and your name will move between them.
All false billers operate in the same manner, so to avoid becoming a victim:
• Verify what you are being told over the phone when taking calls in regards to advertising.
• Ask for a phone number to call them back.
• Verify, using your own records, that you had previously advertised with that organisation. (False billers will use wording and even art work taken from your legitimate advertisements or off the web so don’t allow the familiarity of what you are being told over the phone or faxed to convince you that the call is legitimate).
• Only have one person in the business authorized to confirm advertising.
• Don’t allow yourself to be rushed into a decision due to some urgency invented by the caller ie “we are about to go to print and you’ll miss out” or “if you sign today I can offer you a 25% discount”.
Government consumer protection agencies around Australia will continue to prosecute these types of organizations but unfortunately because it is so lucrative other false billers quickly move in to fill the void. The best weapon is to educate small businesses and prepare them for the inevitable approach by a false billing organisation. If you do not remain vigilant YOU WILL BE SCAMMED.
Scam merchants and con artists thrive on uncertainty. Poorly organised businesses are the main targets for scammers. It is easier to make claims about transactions if the caller knows you have no written confirmation at hand. Keeping proper records and insisting on written confirmation of transactions will not only minimise scams, it also makes good business sense
The message to business owners is - if you didn’t authorise it, don’t pay it!
IF YOU HEAR OF A SCAM, REPORT IT
BBFA has been alerted to recent other false billing solicitations and it is known that these organisations are very active. If you suspect a false billing scam, or any other for that matter, report it. No action can be taken against fraudulent companies if the authorities are not alerted to their activities. The federal government’s anti-scam site www.scamwatch.gov.au has links to all state and territory consumer affairs websites, or will advise you on the most appropriate organisation to deal with your concern. These websites also list known scams and some have excellent publications which can be downloaded giving advice and information. The general information in any of the states’ publications will be helpful, although you should take into consideration that consumer legislation does vary slightly from state to state.
Action taken by a state or territory consumer affairs department will restrict the activities of a business operating only within its jurisdiction. For Australia-wide restrictions the Australian Competition & Consumer Commission (ACCC) must take action. Whilst ever Kent Publishing P/L and Dean James King remain and continue to trade from New South Wales the Supreme Court Orders will protect small businesses nationally.
Conditions of distribution of this e-news bulletin:
BBFA has provided this information to its member associations and other industry colleagues and you may forward it to other recipients providing that Bed & Breakfast and Farmstay Australia Inc is acknowledged as the source.
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