If you have a business, be on the lookout for a fake advertising form, the Better Business Bureau is warning.
In a press release last week, BBB warns of a “Yellow Pages” form being faxed and mailed to Lower Mainland businesses. The correspondence is from a directory called Yellow-Pages or Yellow Holding LTD. Businesses are asked to verify their company information. The official-looking form shows the company’s basic contact information and the famous “Let Your Fingers Do the Walking” image, a trademark of the Yellow Pages Group. The form is not from any official Yellow Pages phone directory.
The form clearly states in large print “THIS IS NOT A BILL” but BBB advises businesses to beware. A disclaimer at the bottom of the form, in very small print, states that by verifying the information, you are purchasing a two-year online directory listing that will cost $1,099 per year. Termination of the agreement is required in writing to cancel and must be done three months prior to the listing’s expiration date or will be automatically renewed for another year.
This problem goes further.
One letter BBB was shown even contains an alleged forged signature of the business owner, a Vancouver dermatologist, while another letter threatens the doctor with legal action if left unpaid, or at the very least a collection agency will be put to the task. The doctor’s office claims it did not send this organization any information at any point about their business to be included in the directory.
“This is not the Yellow Pages brand that we are all familiar with,” says Evan Kelly of BBB serving Mainland BC. “At best, what they are trying to do is rope businesses into a negative option claim for a directory with questionable value. While these types of business practices are not illegal, there are limitations to them in our Code of Advertising and this one we have an issue with. It goes without saying where we stand on the illegal use of the logo and the alleged forged signature.”
Similar versions of this business model have been shut down over the past several years by the Federal Trade Commission in the U.S. and even sued by the Competition Bureau of Canada. Many of those companies found liable were operating outside of North America.
BBB has some recommendations to avoid these types of solicitations:
• Make sure to designate a single person within your business to handle such matters. They will be aware of any and all directory listings your company is placing and when they renew.
• If your company did not purchase space in a directory, you don’t owe arrears.
• If you have filled out this form, make sure you contact the company immediately to cancel.
• Be sure to read all fine print on any form or contract you sign for your business.
• Many fraudulent companies will use similar names or logos of known companies. Be sure you are dealing with the company you think you’re dealing with.
• Understand the Yellow Holding LTD is not the official Yellow Pages.
