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New Zealand trade fairs have been targeted by an international scam which could cost unwitting victims up to $1354 a year.
The Commerce Commission has warned trade fair participants to be cautious about approaches from an Austrian company Construct Data Verlag AG, operators of the website www.fairguide.com.
The company invites businesses to a free update of their details on the "Fair Guide" website, which claims to be "the largest fairs and exhibitions directory on the internet", but the small print commits them to a three-year advertising contract costing more than $4000.
Commerce Commission Director of Fair Trading Deborah Battell said the forms faxed to businesses and non-profit organisations seem to be specifically designed to create a misleading impression.
"In the Commission's view, these forms are very likely to mislead people into thinking they are approving a free listing, when in fact they are committing to a hefty three-year advertising contract," said Battell.
"The company targets organisations outside of Austria, and threatens them with legal action in Austria if they do not pay for the advertising," Battell said.
Battell said the Commission had heard that the company uses a debt collection agency whose staff may become threatening and abusive when companies refuse to pay for the advertising they have inadvertently signed up for.
"Our message is, don't be bullied by these people," said Battell.
The company has been found guilty of fraud in Germany and censured by the Austrian Advertising Council and the Austrian competition authority for misleading conduct.
It is believed they are targeting fairs and exhibitions at Mystery Creek, the Autumn Home Show and the Engineering, Machinery and Electronics exhibition.
- NZHERALD STAFF
