Small Business Directory Shut Down
Last week a European based small business directory was shut down by US trade officials on accusations that they were charging small businesses in the US for unwanted listings. The company, Yellow Pages Marketing B.V., was sending out faxes to small companies in the US, Australia and Canada asking them for business information for local listings.
These faxes copied the Yellow Pages logo to make recipients think that the requests were legitimate. Hidden in the fine print was language that bound the business owners into contracts where fees of $89 per month were charged for a two year listing in an online directory. The unsuspecting business owners were receiving bills for over $1000, and when they refused to pay the company tacked on late fees or threatened to send the bills to collection.