AGCM

 BUSINESS GUIDES ON THE INTERNET: ANTITRUST AUTHORITY SENDS DOCUMENTATION ON UNFAIR OPERATORS ALREADY FINED FOR MISLEADING ADVERTISING TO THE ROME OFFICE OF PUBLIC PROSECUTIONS

Hundreds of complaints received from businesses, professionals and institutions that have sent forms to update their data and instead have received requests for payment. The Authority invites victims to report the phenomenon to the judicial authorities. Make careful study of forms regarding addition of company information on the Internet before signing them: many complaints have to do with new advertising operators who propose the same misleading mechanism.

The Italian Competition Authority has decided to send to the Rome Office of Public Prosecutions all documentation relating to the advertisements whereby various foreign-resident companies invite professionals, institutions and small-to-medium businesses to have their name added to internet guides. These are advertisements that have repeatedly been declared misleading by the Antitrust Authority: recipients are induced by unclear printing to sign a form that seems intended for a free update of the company's or entity's data, whereas it is in fact a costly contract to be included in the guide.

These advertisements, which have also been condemned by other European Authorities, continue to be distributed via e-mail or the traditional postal system in spite of the fact that the Antitrust Authority's rulings have forbidden such distribution.

In recent months, the Authority has received hundreds of complaints from businesses and public institutions that have received payment demands averaging approximately Euro 1000 for insertion in the guides, as a result of the misleading advertising. An equal number of complaints have to do with similar initiatives set up by the same or by new companies.

The Authority has therefore decided to send to the Rome Office of Public Prosecutions, for whatever evaluation or further investigation it may see fit to carry out, all the documentation relating to those companies that have been repeatedly found guilty of misleading advertising and non-compliance with the Authority's rulings.

The companies in question  are the following:

- DAD — Deutscher Adressdienst GmbH (four findings of misleading advertising and three of non-compliance);

- CD Publisher Construct Data Verlag GmbH (two findings of misleading advertising and two of non-compliance);

- Nova Channel AG (one finding of misleading advertising and two of non-compliance);

- European City Guide S.L. (two findings of misleading advertising and two of non-compliance);

- EU Business Services Limited (one finding of misleading advertising).

The Antitrust Authority points out that recipients of demands for payment can lodge a formal complaint with the relevant judicial authorities and that misleading advertising may be grounds for invalidating the contract. Anyone receiving a new offer to add data to these internet guides must carefully read the application form before deciding whether to sign it.

Rome, 12 August 2008