It comes after a trader reported being harassed with cold calls by a company trying to sell advertising space.

The company has a similar name to a leading charity and gave the impression that money would go to the homeless.

Trading standards said the practice was not illegal but "highly immoral". Firms can be charged between �100 and �1,000 for adverts.

Jim Rutter, head of Northumberland County Council trading standards, said: "We gave this trader advice about dealing with publishing scams and have referred the case to a trading standards department in the North West where the company is based.

'Absolutely happy'

"Although there are many reputable publications which do make money for charity, there are unscrupulous telesales teams who see this as a way to make a fast buck.

"As with many frauds, it may not be illegal but is highly immoral."

Mr Rutter said businesses are often bombarded with cold calls pressing them to place an advert but often the firm would not publish any adverts or print just a few token copies.

He added: "As with any scam, the best way to prevent it is for people to be on their guard.