OFT secures undertakings from prize draw promoter

21 Oct 2010 03:46 PM

A leading prize draw promoter has given undertakings to the OFT that it will no longer use names such as the 'British Awards Council' on mailings or other promotional material.

McIntyre & Dodd Marketing Ltd distributes various premium-rate prize draw mailings, including a promotion recently sent to consumers under the name 'British Awards Council'. The Companies Act 2006 prohibits the use of the words 'British' and 'Council' without prior approval from the Secretary of State as they may imply a particular status or function that could mislead the public.

McIntyre & Dodd Marketing Ltd, an associated company Strike Lucky Games Ltd, and their common officers Adrian Williams and Wendy Ruck have accepted that these promotions contravene the Companies Act and have undertaken not to continue using names that include the words British, Council, National, Registry and Register without first obtaining the required approvals.

The general trading practices of these companies are subject to separate enforcement action by the OFT. In December 2009 the OFT issued High Court proceedings against McIntyre & Dodd Marketing Limited, Purely Creative Limited, Strike Lucky Games Limited, The Winners Club Limited, and Dodd Marketing Limited, and their officers. These proceedings seek injunctive relief which would stop the companies and their officers from distributing prize draw promotions which the OFT considers to be misleading and unlawful. The companies believe that their promotions comply with the relevant laws and guidelines and so have declined to cease their publication. This matter is due to come before the High Court in early January 2011.

Speaking about the undertakings, Jason Freeman, Legal Director in the OFT's Consumer Group, said:

'Traders should not give the impression that they have an official status when this is not the case. We felt these names were likely to mislead consumers as to the attributes of the trader and the sort of product they were being offered. We expect commercial communications to be truthful and not misleading.'

'These undertakings mean that McIntyre & Dodd Marketing Ltd, Strike Lucky Games Ltd, and their officers will stop distributing promotions that, in our view, mislead consumers in this particular way.'

NOTES

1. McIntyre and Dodd Marketing Limited and Strike Lucky Games Limited have the same registered office of Green Heys, Walford Road, Ross on Wye, Herefordshire, HR9 5DB. 
2. Section 1194 of the Companies Act 2006 and Regulation 3 and Schedule 1 Part 1 of the Company, LLP and Business Names (Sensitive Words and Expressions) Regulations 2009 prevents the carrying on of a business under a name which includes certain words such as 'British', 'Council', 'National', 'Registry', or 'Register', without the approval of the Secretary of State of Business Innovation and Skills.
3. The OFT considered that the following names in communications and promotional material distributed by Strike Lucky Games Ltd and McIntyre and Dodd Marketing Ltd contained prohibited words:
   
   - The British Awards Council
   - National Allocations Office
   - National Awards Service
   - County Award Registry Bureau
   - Unclaimed Prize Register
   - Community Awards Register UK
   - Prize Register
   
4. In a separate enforcement action, in December 2009 the OFT issued court proceedings seeking an enforcement order under the Enterprise Act 2002 for breaches of the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) against McIntyre & Dodd Marketing Limited, Purely Creative Limited, Strike Lucky Games Limited, The Winners Club Limited, Dodd Marketing Limited. An enforcement order is also being sought against Adrian John Williams, a common director of all the companies, and Wendy Elaine Ruck, the common secretary, as well as Catherine Cummings a second director of Purely Creative Limited, and Peter Jude Henry, a previous director of The Winners Club Limited. The High Court has indicated that the hearing of the proceedings will commence on 11 January 2011. Further information about this case can be found in the press release of 11 January 2010: OFT seeks court order against prize draw promoters.