Cold callers targeting small firms

The Office of Fair Trading (OFT) has received undertakings from the former directors of Cavendish Black Ltd and McAllister Stone Ltd, two publishing companies that were selling advertising space to small traders by making what were in the OFT's view misleading claims.

Although the DTI has put both companies into compulsory liquidation, the OFT has secured undertakings from the directors of the companies that regulate their future conduct.

Cold calling

Cavendish Black Ltd and McAllister Stone Ltd had both been cold calling small traders across the UK asking if they wanted to advertise in magazines and, in the OFT's opinion, giving the misleading impression that they were connected to the Police and emergency services in that area and that some traders had placed advertisements when they had not.

Tony Williams, Stephen Williams, Martin Cumine and Christopher Hanley all gave undertakings, under the Control of Misleading Advertising Regulations 1988, that they would not in future:

• give the impression that a trader had placed or requested an advert in a publication when this was not the case;
  
• give the impression that a business is connected to the police or emergency services when it is not;
  
• give the impression that a publication is produced in conjunction with the police or emergency services when it is not.

Each of the directors denies that the advertisements were misleading.

John Fingleton, OFT Chief Executive, said: "Although the two companies have already been put into compulsory liquidation, these undertakings will regulate the conduct of the individuals concerned in any future business dealings they have. If they breach the undertakings we have the powers to get an injunction in the courts."