A COMPANY which charged exorbitant fees to list firm's entries on an Internet business directory has been wound up following an investigation by the DTI.
Online Business Index Limited (OBI) contacted thousands of businesses in Manchester and London by mailshot inviting them to add their details to its Internet directory. The firm gave the impression that it was a free service but charged £845 plus VAT per year over a minimum two-year term.
The Advertising Standards Agency said the mailshot was misleading but OBI continued to contact potential clients with a similar mailshot.
OBI used London accommodation addresses but operated mainly from Germany. The majority of customers refused to pay on the basis that they had been misled, but OBI pursued them through debt collection agencies.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article