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Monday, 29 April, 2002, 16:25 GMT 17:25 UK
UK blocks Dutch-based scam
Parcel
New legislation has given the OFT clout overseas
The UK's Office of Fair Trading has stopped a first-aid kit scam run by a Netherlands-based company, in the first ever cross-border clampdown of its kind.


Companies based in other European countries can and will be pursued by the OFT if they breach consumer protection legislation

John Vickers, director general of Fair Trading

The OFT, working with the Dutch Consumers' Association (Consumentenbond) took action against Royal Consulting, a Dutch company, which had been sending unsolicited first aid kits to UK residents accompanied by demands for payment.

The OFT had received more than a hundred complaints about the company.

Under recent European Union legislation - the "Stop Now" Regulations and the EC Injunctions Directive - the OFT can take swift action against companies based in any European Economic Area (EEA) country.

Hilary Jones, principal lawyer at the Consumers' Association welcomed the news.

Ms Jones told BBC News Online: "It's a very significant in demonstration that the OFT is willing to use its powers."

Royal Consulting

Under the 'Stop Now' procedures, the OFT must enter into dialogue with a company before court action.

In this case, the OFT said it had now obtained assurances from Royal Consulting BV and its parent company Royal Consulting AS, that they would stop making demands for payment for unsolicited first aid kits.

But, if Royal Consulting fails to stop sending kits to UK consumers, the OFT said it would take further action through the Dutch courts.

New legislation used
Stop Now Orders (E.C. Directive) Regulations
EC Injunctions Directive
Stop Now Regulations

John Vickers, Director General of Fair Trading, said: "Companies based in other European countries can and will be pursued by the OFT if they breach consumer protection legislation.

"This case illustrates how our enforcement powers can protect UK consumers even when suppliers are based overseas."

Royal Consulting could not be reached for comment.

Further information:

Consumers who receive demands for payment for unsolicited goods from companies based in mainland Europe should contact the European Enforcement Team (1W) at Fleebank House, 2-6 Salisbury Square, London EC4Y *JX or email: [email protected]

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