Ernie Clark. Hilperton Division, Wiltshire Council.

Beware of the European City Guide.

Wiltshire Council's trading standards team are warning local businesses to be on their guard following reports that small businesses across Wiltshire are being hit by a directory scam known as the European City Guide.

The scam operated by a Spanish company sends e-mails or letters to small businesses offering them free renewal of their entry into the guide although many businesses don't even have an existing entry.

In small print at the bottom a signature is required. This signature is an agreement to sign up to a three year contract. Many small businesses have failed to read the small print, or even understand it and have signed what European City Guide say is a contract. When the invoice for the entry is not paid, threatening letters from the company and debt collectors start arriving.

This scam is subject to a European investigation. European City guide has been condemned by the Office of Fair Trading which is seeking to strengthen UK laws on misleading advertising.

Sue Wilkin from Wiltshire trading standards advises: "Despite legal action by the Catalan court some years ago and a vote to stop this scam by the Petitions Committee of the European Parliament last year, this scam still flourishes. Any communication you receive from European City Guide needs careful reading. Complainants contacting trading standards have unwittingly put their signature on the European City Guide letter and are now being threatened by debt collection agencies. The contract costs can be as much as £900 per annum for three years. Businesses have found it impossible to cancel once they have signed up. Don't sign any documentation sent by this company and do not pay them any money. Until this scam is stopped once and for all, the best we can do is advise small businesses to be careful about this and any other mailshot or e-mails offering directory entries."