autumn 2016 round-up read up on cold-callers to avoid scams of all the scams, those involving advertising affect businesses especially small and medium-sized enterprises (SMEs) most frequently, and they seem never-ending. Its like a game of whack a mole: as one is defeated, another pops up. So Trading Standards is advising businesses to protect their enterprises by doing their due diligence. A recent operation by Trading Standards in the East Midlands was something of a behemoth, which needed a team of officers to gather evidence and pull together a file forcourt. RouNd-uP An individual Mr A set up a huge number of companies, each of which was responsible for a publication to be distributed in a particular area of the uK. Typically, these would be given names similar to established and respected papers operating in the same region. For example, the Torquay Advertiser & Herald might be produced where the Torquay Herald already existed, so businesses in the area would believe they were being contacted by a well-known publication. Mr A set up a trusted team to take charge of the publications, and below these people were whole gangs of lowly paid staff mainly people in their 20s who would do the telephone canvassing. The canvassers trawled through bona fide publications looking for businesses that were already advertising in their particular area. These would then be cold-called and sold more advertising. The firms would think they were dealing with the genuine paper, and would be misled over readership numbers, places of distribution, the general nature and style of their advert, and the publication. If one rogue publication made a sale, that business would be targeted by other canvassers, who would cold-call it to try to sell it further advertising and so it went on. So, the advice to businesses is, if you are coldcalled and asked to agree to advertising, do your due diligence first. Check who you are dealing with; is it really a well-known and wellrespected publication? Have you seen the paper? Where and how is it being distributed? What is the likelihood of you actually getting new customers if you do place an advert? Following these simple steps could save you a small fortune. Credit: Phil Page Icatnews / Shutterstock Show and tell: business names disclosure Businesses are being reminded that they have a duty in law to control how their company and trading names are used, displayed and disclosed. obligations fall under many pieces of legislation and, if rules are not met, businesses could have fines levied against them. For example, the maximum penalty on conviction is a 1,000 fine plus for continued contravention a maximum daily fine of 100. The ways in which company, business and trading names can be used, displayed and disclosed are regulated by the Companies Act 2006, and the Company, Limited Liability Partnership and the Business (Names and Trading Disclosures) Regulations 2015. RouNd-uP These laws apply to: individuals who trade under a name that is not their given name; partnerships that do not operate under the names of the individual partners; and companies/limited liability partnerships Sole traders and partnerships If they fit the above criteria, sole traders and partnerships must display and disclose the full name of the proprietor or of all the partners and an address at which the businesss legal documents may be served. The required information must be: l displayed in a prominent position in all premises where customers and suppliers have access l Included, legibly, on all: - letters - written orders for goods or services - invoices and receipts - written demands for payment - business websites (under the Electronic Commerce (EC directive) Regulations 2002) l Given immediately in writing to any customer or supplier who requests business details There are different rules for partnerships of more than 20 people. Companies Companies must display their full, registered name at their registered office, all other locations at which they carry on business except those used primarily for living accommodation and the location of where company records are kept available for inspection. The company name must also be shown on all business correspondence and documentation (see panel, Examples of business correspondence, below). on business letters, order forms and websites, a company must also disclose: where in the uK it is registered; its registered number; the address of the registered office; that it is a limited company if exempt from using the word limited, or if it is a community interest as opposed to a public company; and, where appropriate, that it is an investment company. If asked by anyone with whom it does business, a company must provide its registered office address and the location of any inspection place as well as the type of records kept there within five working days. Credit: Sylvia Rook Credit: Mar Kyr Examples of business correspondence and documentation on which a companys name must be disclosed: Business letters notices official publications Websites Bills of exchange Promissory notes Endorsements order forms Cheques signed by or on behalf of the company l orders for money, goods or services signed by or on behalf of the company l Bill of parcels l Invoices l demands for payment l receipts l letters of credit l applications for licences to carry on a trade or activity l all other forms of business correspondence and documentation l l l l l l l l l KEy lEgISlaTIon Companies act 2006 Company, limited liability Partnership and Business (names and Trading disclosures) regulations 2015 Electronic Commerce (EC directive) regulations 2002 For further information please contact your local Trading Standards Service