OFFICE OF FAIR
TRADING News Release (130/08) issued by COI News Distribution
Service. 13 November 2008
A Dutch-based
company has been stopped from publishing misleading
'psychic' advertisements in the UK, following action by
the OFT.
Sky Connection BV, a Dutch company, placed advertisements in a
number of national newspapers and magazines claiming that
'experts' at an organisation named as the
'Institute of Wellbeing' were launching a major appeal
to identify individuals born between 1932 and 1969. The adverts
claimed that the experts believed that many people born between
these dates could enjoy 'unbelievable good fortune' in
the coming weeks.
Consumers were asked to contact the experts by completing and
returning a coupon to receive a free 'forecast'
detailing a number of predictions. At least 30,000 consumers
responded to the advertisements and were then sent a number of
highly misleading follow-up mailings offering various
'psychic' products.
At least 6,700 orders were placed for the advertised products and
services, which cost between £20 and £40. The products offered
included a 'personal positive wave harmoniser' which it
was claimed was designed to alleviate bad luck associated with
negative waves in the consumer's home, and 'personal
lottery numbers to play'. The mailings were personalised to
give the impression that each recipient was known to the sender
but were in fact otherwise identical mass mailings.
The OFT approached Sky Connection BV contending numerous breaches
of consumer protection law and requesting substantiation of the claims.
Having provided no evidence to substantiate the existence of the
so called 'Institute of Wellbeing' or any of the other
claims, Sky Connection BV, its UK parent company Priority Mail
Ltd, and their common director Mr Gerard du Passage each gave
undertakings to the OFT, under the Enterprise Act 2002, that they
would stop publishing the offending advertisements and no longer
engage in unfair commercial practices.
If the undertakings are breached, the OFT can seek a court
injunction in the UK and refer Sky Connection BV to its Dutch
counterparts requesting action under the EU Consumer Protection
Cooperation Regulation.
The OFT will be writing to all consumers who ordered products
from Sky Connection BV advising them about its action and offering
advice about bogus psychic mailings more generally.
Mike Haley, OFT Director of Consumer Protection, said:
'These advertisements made highly misleading claims
promising consumers luck, happiness and money if they bought the
products offered. The OFT will continue to take action against
marketers who seek to exploit vulnerable and superstitious consumers.'
The OFT estimates that 170,000 UK consumers fall victim to
deceptive psychic mailings every year collectively losing an
estimated £40 million annually. Consumers who are unsure whether
an offer is genuine should contact Consumer Direct for clear,
practical advice on 08454 04 05 06 or visit the Consumer Direct
website at http://www.consumerdirect.gov.uk.
NOTES
1. Sky Connection BV has a registered office of Modmstraat 20-1,
1033 RW Amsterdam, Netherlands. Priority Mail Ltd has a
registered office of 37 Greenhill Street, Stratford-upon-avon,
Warwickshire, CV37 6LE.
2. Undertakings under Part 8 of the Enterprise Act 2002 were
given by Sky Connection BV, Priority Mail Ltd and their common
director Gerard du Passage, on 13 October 2008. The undertakings
relate to contended breaches of the Consumer Protection from
Unfair Trading Regulations 2008.
3. Sky Connection BV, trading as 'The Institute of
Wellbeing' is not connected in any way to the UK company,
Institute of Wellbeing Limited which has a registered office of
113A Anerley Road, Anerley, London, SE20 8AJ.
4. The Consumer Protection from Unfair Trading Regulations
('CPRs'), which implement an EC Directive, came in to
force on 26 May 2008. The CPRs prohibit unfair commercial
practices which distort consumers' decisions. They introduce
a general duty not to trade unfairly on businesses dealing with
consumers. They prohibit misleading consumers by action or
omission. They also contain prohibitions against aggressive
practices, as well as 31 specific practices that are always
considered unfair.
5. The CPRs are enforceable by the OFT and other designated
enforcers through both the criminal and civil courts. Breaches of
the CPRs also constitute 'Community infringements' under
the Enterprise Act 2002. Under this Act, the OFT can apply to the
courts for an injunction ordering businesses to comply with the
law in future. It may also accept undertakings from those involved
in lieu of action.
6. Consumer Direct is a telephone and online consumer advice
service funded by government and managed by the Office of Fair
Trading. It offers clear, practical and impartial advice and
information about consumer rights.
http://www.oft.gov.uk
PUBLIC enquiries: 0845 7224499
enquiries@oft.gov.uk
OFT
reports and consumer information leaflets are available free
from:
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