Editor: Pat Williams. E-mail pwilliams@creditman.co.uk
John Arnold. E-mail jarnold@creditman.co.uk
Site: Business Credit Management UK
URL: http://www.creditman.co.uk
Issue: Vol 4 Issue 13
Dated: 2 April 2000
Welcome to the Business Credit News UK.
In this weeks edition you will find the following topics.
UKORDERS WEAKER IN MARCH BUT MANUFACTURERS' OUTPUT EXPECTATIONS MORE UPBEAT - CBI
Manufacturing orders deteriorated in March following four months of improvement. However, the results of the CBI's monthly Industrial Trends survey show that orders are significantly less negative than in the first half of 1999.
The survey shows that 35 per cent of manufacturers report that total orders are below normal, while 19 per cent said they were above normal, giving a balance of minus 16 per cent. This compares with balances of minus 14 per cent in January and minus 11 per cent in February .
Export demand remains well below normal and to a similar extent to that reported in the previous three surveys. Forty-two per cent of firms said their export orders were below normal, with 15 per cent saying they were above normal, giving a balance of minus 27 per cent. This compares with minus 30 per cent in January and minus 25 per cent in February.
Manufacturers still expect output to rise significantly over the next four months with expectations the highest since last September. Thirty-two per cent of manufacturers expect their output to rise over the next four months, while 15 per cent expect it to fall giving a positive balance of 17 per cent. Output expectations have now been positive since the middle of last year.
Manufacturing firms are now expecting domestic prices to fall more quickly over the next four months contrary to the suggestion in the previous four surveys that the downward pressure on prices had been easing. Twenty-six per cent of manufacturers expect prices to fall over the next four months while only 15 per cent expect them to rise, giving a negative balance of 11 per cent.
Sudhir Junankar, CBI's Associate Director of Economic Analysis, said: "Export demand remains weak, but much less so than during most of 1999. Although sterling's strength against the euro continues to handicap UK exporters, improved demand conditions in Euroland and a buoyant US economy have so far eased the pressure on them. Manufacturers have also become more confident about increasing production over the coming months. But the downward pressure on prices and margins seems to be increasing once again."
Stocks of finished goods were built up over the past month. Stock levels are more than adequate to meet expected demand and to a greater extent than in the previous six months. The positive balance of 13 per cent of firms reporting excess stocks is now back up towards the long-term average recorded in a monthly survey.
BUSINESS SPLIT DOWN THE MIDDLE ON SINGLE CURRENCY
Business is deeply divided on UK membership of the Single Currency, according to a major business survey on this issue published on Friday 31 March by the British Chambers of Commerce (BCC) ahead of its National Conference in London on 4 & 5 April.
The survey conducted with the co-operation of Business for Sterling and Britain in Europe, covers 7,080 firms of all sizes, in all sectors and from every UK region. It shows that almost equal numbers of businesses favour a commitment to join (38%) or a decision to rule out membership for at least the foreseeable future (36%). However a substantial minority of firms (24%) believe the UK should keep the position under review without making a commitment to join.
The survey reveals that larger firms with 250+ employees and those trading internationally take a more pro-euro stance, but even here only a minority, 47% and 42% respectively, believe the UK should join immediately or be committed in principle.
Chris Humphries, Director General of the BCC, said:
‘’Compared with other recent business surveys on the single currency, this shows an increasing polarisation of business opinion between pro and anti-euro camps. If government wishes to retain the option of joining the Single Currency after the next election, it must give serious consideration to how it will promote the benefits to the business community which clearly remains unconvinced.’’
Invited to comment on the impact of euro membership on interest rates, competitiveness, exports and inward investment, most firms felt the UK would benefit from membership or it would make no difference. However, 60% of respondents felt that the UK’s tax burden would be lower if the UK remained outside the Single Currency.
Dr Ian Peters, BCC’s Deputy Director General responsible for the survey, said:
‘’Businesses’ lukewarm support for the euro appears, at least in part, to be a reflection of the widespread concern that membership of the Single Currency will lead to higher taxes and more regulation. Business will need to be convinced that there are adequate safeguards to prevent this.’’
The survey also shows that almost half of respondents (49%) have made preparations for the UK’s possible adoption of the euro in the next Parliament (2002-2007), with the level of preparedness increasing with size of business and reaching 68% among those exporting to the EU.
Many businesses that have not yet made any significant preparations for using the euro as the UK’s currency would be triggered to do so by the announcement of a target date for entry (35%) or by a ‘yes’ vote in a referendum (36%).
THE EURO
The Euro continued its long-term decline against the yen, hitting record lows as the Japanese economy continued to show signs of improvement and chances of the ECB raising interest rates receded. The euro was also at a three-week low against the dollar.
Did you go to Credit 2000 at Olympia? Was it any better than Credit 99 at the Hammersmith Novotel?
If you did go I would be pleased to hear your views. I have started a thread in the Conference Centre at the website or you can simply e-mail me jarnold@creditman.co.uk
I feel sure we will get Advanstar's reaction to your comments so they will not go unnoticed.
WINNING SMALL CLAIMS - COURT ARBITRATIONS
Brethertons Solicitors are holding a seminar for Businessmen/Credit Controllers/Financial Directors in Banbury on Thursday 18th May 2000 on the subject of "Winning Small Claims Court claims".
As you may know, at present the small claims court limit is £5000.00. As a result more and more credit controllers, financial directors and businessmen will find themselves conducting arbitration hearings on their own without legal representation, as the legal costs are not awarded in such cases even to the successful party.
Whilst businesses may be happy to write off a debt of £500.00, will the same be true if it is £5000.00? We think not!
The seminar will be co presented by Shaun Jardine, Jamie Burton and Tony Sutton.
Shaun Jardine - Shaun is one of the Partners in Brethertons Commercial Litigation Department and the head of the Debt Recovery Department. Shaun is a member of the Institute of Credit Management and has lectured extensively on the problems associated with debt collection and how to overcome them.
Jamie Burton - Jamie is a pupil barrister (the type you are most likely to be up against if your debtor instructs counsel) who practices from the Chambers of Anthony Scrivener QC.
Tony Sutton - Tony is a Solicitor of many years standing, who now sits as a Deputy District Judge in the County Courts in and around Birmingham.
The subjects that will be covered will include: -
Cost is £50.00 plus vat. Spaces are limited and will be allocated on a first come first served basis.
Date: Thursday 18 May 2000 Venue: Bodicote Park, Oxford Road, Banbury, Oxfordshire
Contact Shaun Jardine, Brethertons, 57-58 High Street, Banbury, Oxon, OX16 8JJ
Telephone 01295 270999
Email seminars@brethertons.co.uk
Web site http://www.brethertons.co.uk
COMPANIES HOUSE WINS BUSINESS IMPACT AWARD
Companies House has won a PricewaterhouseCoopers Award, for Innovation and Risk Management. This award scheme is run in partnership with the Cabinet Office and highlights the steps Executive Agencies and larger Executive Non-departmental Bodies are taking to tackle the challenges of the Modernising Government White paper.
Companies House achieved the Business Impact Award because of its innovative approach to providing information through its internet service, Companies House Direct, which gives customers access to images of more than 20 million documents, within minutes. Companies House Direct now provides more than one third of Companies House's search income, with customers moving away from traditional, microfiche based services.
John Holden, Chief Executive at Companies House, said:
"The information Companies House makes available to the public is vital for informed business decisions and for confidence in the economy.
"No organisation can afford to stand still not withstanding the issues involved with change. I am very pleased that the innovative approach to providing services and the skill in managing the associated risk, shown by the people who work here have been recognised in this way."
In February 2000, the Companies House web site received more than 1.2 million hits and more than 344,000 company searches were made.
This is the first year the awards have been made. There were 18 entries. The winner of the Award for Innovation and Risk Management was the Public Record Office. The Best Pilot Award was won by the Social Security Agency and Training and Employment Agency, Northern Ireland.
Winners had to demonstrate:
UK AND SPANISH EXPORTERS TO BENEFIT FROM NEW ECGD "ONE STOP SHOP" AGREEMENT
ECGD last week announced completion of co-operation arrangements with itsSpanish counterpart (CESCE) which will provide UK and Spanish capital goods exporters with "One Stop Shop" access to export credit packages when they work together in projects in third countries.
Exporters from the UK and Spain will gain faster access to export finance as a result of the deal, which will strengthen their bids when competing together for contracts in areas like Latin America and the Middle East.
A reciprocal Reinsurance Agreement has been signed by David Wyatt, Head of Business Promotion at ECGD, and by Javier Valero, CESCE's Chief Executive Officer.
Mr Wyatt said:
"We look forward to working with CESCE under this new Agreement. Contractors, collaborating from different countries, will be able to offer the overseas buyer a seamless financing package. This kind of arrangement can make all the difference when a competitive tender is called for."
Mr Valero said:
"We are delighted with this new Agreement and hope its signing will be to the mutual advantage of exporters and lenders in both our countries."
This agreement is similar to co-operation and "One Stop Shop" arrangements which ECGD already has in place with nineteen other countries.
The main features of this agreement are:
Compania Espanola de Seguros de Credito a la Exportacion, S.A. (CESCE), the Madrid-based Spanish Export Credit Insurance Company, covers commercial risks for its own account and political and extraordinary risks on behalf of the State.
ECGD, the Export Credits Guarantee Department, Britain's official export credit agency, is a separate Government Department responsible to the Secretary of State for Trade and Industry. One of its main functions is to underwrite bank loans to enable overseas buyers to purchase capital and project related goods/services from the UK.
*** Forthcoming Creditors Meetings ***
Contributed byhttp://www.insolvency.co.uk
For more detailed information and ALL the British Isles insolvency's (liquidation's, receiverships, administrations, dividends, creditors) please visit http://www.insolvency.co.uk
From 03/04/2000 to 11/04/2000 Number of Creditor meetings : 207 Section Company Time Venue 138 Scotland - Interim Liquidator calling Creditors Meeting 03/04/2000 New South Mills Ltd 11.00 am Dundee 04/04/2000 HDS Systems Ltd 12.00 pm Falkirk 06/04/2000 Alexander Murdoch Ltd 10.00 am Edinburgh 11/04/2000 2 Good Global Music Organisation Ltd 12.00 pm Glasgow 48 Receiver calling unsecured Creditors Meeting 03/04/2000 Pipework International Ltd 10.00 am Sheffield Pipework Supplies (Northern) Ltd 11.00 am Sheffield 05/04/2000 Patchington Farms Ltd 10.30 am Cholderton RDC Barfitting Services Ltd 12.00 pm Bristol 06/04/2000 N-S (Eurowire) Ltd 11.30 am Stone R G With (Builders) Ltd 10.00 am London 11/04/2000 Seatons of Yeovil Ltd 11.30 am Taunton Whites Contract Hire Ltd 11.30 am Taunton Whites of Bridgwater Ltd 11.30 am Taunton Whites of Taunton (Holdings) Ltd 11.30 am Taunton Whites of Taunton Ltd 11.30 am Taunton Whyte Knights Ltd 11.30 am Taunton 67 Scotland - Receiver calling Meeting of unsecured Creditors 07/04/2000 Howegarden UK Ltd 11.00 am Aberdeen 95 Members converting to Creditors Voluntary Liquidation 06/04/2000 Masterform DSK Ltd 10.00 am Aveley 98 Creditors Voluntary Liquidations 03/04/2000 A L C Blackburn Ltd 11.30 am Blackburn Alumeta Ltd 11.00 am Manchester Ashleys Plymouth Ltd 11.00 am Plymouth Atyre Warehouse Ltd 02.30 pm Herne Bay Braebuilders Ltd 11.00 am Halifax Clearview Leisure Ltd 11.00 am London Corporate & Legal Securities Ltd 11.00 am Maldon Degen Construction Ltd 11.00 am London Dicemoat Ltd 11.30 am London Globelast Ltd 10.30 am London Goldman Clifford Ltd 09.00 am London Millennium Joinery Services Ltd 11.30 am Hornchurch Paragon Building Services Manage Ltd 02.30 pm Stoke-on-Trent Precision Etching Ltd 12.00 pm Woodlesford R L A Transport Ltd 11.00 am Lincoln RNC Building Services Ltd 11.30 am London Reflex Telecoms Ltd 12.30 pm Poole Rous Racing Ltd 11.30 am St Albans Shelly Steel Construction Ltd 11.30 am Sutton Ship Management & Logistics Ltd 12.00 pm London Systronics International Ltd 02.30 pm Hampshire T & M Electrical Services Ltd 11.00 am Glasgow Toast Ltd 12.00 pm London Uniglaze Manufacturing Ltd 12.00 pm Swansea Uniglaze UK Ltd 02.00 pm Swansea Wakeman Cropper Associates Ltd 11.30 am Preston 04/04/2000 2 Print Ltd 11.00 am Wyboston Active Pub Co Ltd - The 11.30 am London Armagate Ltd 12.30 pm London Be'Kleen (Stockport) Ltd 11.30 am Manchester Blakeley Painters Ltd 02.30 pm Manchester Brunton Design Associates Ltd 12.00 pm London C J Motor Group Ltd 11.15 am East Linton Cablemaster Ltd 11.15 am Bromley Charig Systems Ltd 11.00 am Edgware Coinstore Ltd 12.00 pm Stockport Controlled Environment Systems Ltd 11.30 am Altrincham Duncans of Ironbridge Ltd 11.00 am Birmingham Easton Manufacturing Ltd 10.45 am Ipswich Goldspec Ltd 11.30 am London Haitai Electronics (UK) Ltd 10.00 am Newcastle-u-Tyn I S R Holdings Ltd 11.00 am Marlow Independent Kitchen & Bedrooms Ltd 10.30 am London Information System & Research Ltd 11.00 am Marlow James Fraser & Son (Ayr) Ltd 11.00 am Ayr Nelson Glass Ltd 11.00 am Manchester Ockington Properties Ltd 11.00 am Hereford Ozone Laundry Co Ltd 12.00 pm Royston Peterson of Dublin (UK) Ltd 11.30 am Manchester Phoenix Euro Ltd 02.00 pm London Q Squared Ltd 12.00 pm Aylesbury Skipdale Security Services Ltd 11.00 am Leeds South of Scotland Home Weavers Ltd 10.00 am Edinburgh Sterling Foods Group Ltd 11.00 am Chandlers Ford Stylesearch Ltd 11.30 am Lutterworth West Country Sheepskins Ltd 11.00 am Bristol Wirral Thermal Insulations Ltd 11.00 am Liverpool 05/04/2000 Advantage Healthcare (T20) Ltd 11.00 am Birmingham Advantage Healthcare (T35) Ltd 11.30 am Birmingham Advantage Healthcare (T6) Ltd 10.30 am Birmingham Advantage Healthcare (T68) Ltd 12.00 pm Birmingham Avid Net Ltd 12.30 pm Chelmsford Bolina Buttons Ltd 02.00 pm London Crepe Du Jour Ltd 11.00 am Reading Design & Build Interior Systems Ltd 03.00 pm London Diagnostic Testing Ltd 11.30 am Ipswich Draper Thornton Engineering Ltd 10.30 am Sheffield Engineering & Construction Cont Ltd 11.30 am London Futureway Ltd 12.00 pm Old Basing G & C Site Services Ltd 10.30 am Leeds Gray Building Contractors Ltd 11.00 am London International Double Glazing Ltd 12.00 pm London J B Heal Ltd 10.30 am Southend-on-Sea Jewellease Ltd 12.00 pm London Jordan Construction (Cheshire) Ltd 10.30 am Hanley Lanestar Ltd 12.45 pm London Loggold Ltd 10.30 am London Machine Pattern Co Ltd 03.00 pm Marlow Majormain Ltd 02.30 pm Sheffield Meon Valley Coaches Ltd 10.15 am Moreton-in-Mars Merchants Direct Ltd 03.45 pm Sheffield Midlands Switchgear Co Ltd 02.30 pm West Bromwich Old Gate House Properties Ltd 01.15 pm Sheffield Operations Resources Ltd 11.00 am London PDS Steam Cleaner Maintenance Ltd 11.30 am Altrincham S S Groundworks & Civil Engineering Lt 12.00 pm London SBR Contractors Ltd 10.00 am Chelmsford Sandhurst Ltd 10.30 am Exeter Somethings Cooking Ltd 11.00 am Sandbach Southbrook Consultancy Ltd 10.30 am Worthing Thomas Wright (Electrical) Ltd 12.30 pm High Wycombe Unifurnaces (Contracting) Ltd 11.00 am Birmingham Unifurnaces (Holdings) Ltd 11.00 am Birmingham Unifurnaces (Overseas) Ltd 11.00 am Birmingham Unitech IT Consultants Ltd 12.50 pm London 06/04/2000 Academy Credit Services Ltd 12.00 pm Cardiff Alexander Engineering Ltd 10.15 am Reading Anglo Croation Cars Ltd 11.00 am Barnsley Barbarian Associates Ltd 12.00 pm London Barrie Francis Builders Ltd 11.30 am Ashby-de-la-Zou Bedfont Scaffolding Ltd 11.00 am London Brelade International Ltd 10.30 am Leeds Citycrown Ltd 12.00 pm Aylesbury DJM Employment Services Ltd 11.00 am Bristol Drawn by Martin Ltd 10.30 am Warwick Eastend Civil Engineering Ltd 12.00 pm Glasgow Eurobathrooms Ltd 11.00 am Derby Flame-Lily Ventures Ltd 10.45 am Guildford G A Services Ltd 10.30 am Nottingham Grand Union Ltd 03.30 pm Lutterworth House of Majid Ltd 12.00 pm Llanderyn Industrys Driving Force Ltd 10.30 am Manchester Integrated Construction Ltd 02.00 pm London Isotherm Insulations Ltd 02.30 pm Birmingham M E Electronics Ltd 10.00 am St Albans Morley Decorators Ltd 10.30 am Driffield Munson Electrical Contarctors Ltd 11.30 am London New Digital Technology Ltd 03.30 pm Kingston-u-Tham Opus Printing Ltd 11.30 am Guildford Palmstock Hotels Ltd 12.30 pm Hove Precision Lens Co Ltd 11.30 am Chester RCP (Instrument Engineers) Ltd 11.00 am London Ridge Fashions Ltd 10.30 am Nottingham Stonedog Consultancy Ltd 11.00 am Edgware Sup-A-Lay Flooring Ltd 10.00 am Bolton Thompson & Jackson (1997) Ltd 11.15 am Preston Trio Print UK Ltd 02.30 pm Hampshire Vadis Ltd 10.30 am Manchester Vale Tarmac Ltd 11.30 am Birmingham Wessex Fine Art Ltd 11.30 am Matford Yorkstone Services Ltd 11.30 am London 07/04/2000 Ace Foam Converters Ltd 04.00 pm London CID Publishing Ltd 12.00 pm London Calthorpe McKenzie Ltd 11.00 am Birmingham Capital Design Services Ltd 11.00 am Altrincham Carbon Clothing Ltd 11.00 am London D M Parker Ltd 11.00 am Birmingham Donwell Enterprises Ltd 11.30 am Chester Feco Ltd 02.00 pm London Globe Diesels Ltd 11.00 am Newbury Havercourt Ltd 11.30 am London J M J Automation Ltd 03.00 pm Swansea L & H Organisation Ltd 01.30 pm London Lagona Ltd 03.00 pm London M J L Contracts Ltd 11.00 am London MDS Air Conditioning Ltd 10.00 am Swansea Maria Ltd 12.00 pm London Meta4 Multimedia Ltd 04.00 pm London Mobile Bus & Coach Workshop Ltd 12.00 pm Birmingham Myrefield Celstone Ltd 10.30 am Sheffield Olde English Sheepskin Ltd 11.00 am Shepton Mallet Qualitek Construction Ltd 12.00 pm Manchester Rockbourne Associates Ltd 02.00 pm London Slam Dunk Ltd 12.00 pm Reading Square One Health Promotions Ltd 10.30 am Droitwich Spa Surrey Timber & Building Supplies Ltd 11.30 am London TIK Ltd 01.00 pm London Vectra Industrial Systems Ltd 10.30 am Taunton Venture Fleet Services Ltd 03.30 pm London Vibe Systems Ltd 11.15 am Gerrards Cross Winfields of Leicester Ltd 11.30 am Leicester 10/04/2000 4 Tunes Music Ltd 10.30 am London A Webster (Removals) Ltd 11.30 am March CD-Rom Distribution Plc 12.00 pm Manchester Chain Car Sales Ltd 02.30 pm London Classic Agency Ltd 11.30 am Nottingham DPA Progress Ltd 11.45 am London Euro Trading (UK) Ltd 02.30 pm Botley G W Cowling Ltd 11.30 am Leicester Goldmont Security Services (UK) Ltd 12.00 pm London Heritage Hide (England) Ltd 11.00 am Leeds Morrell Construction Ltd 11.00 am London Simmy Ceramics Ltd 02.30 pm South Ruislip TMK Construction Ltd 11.00 am Lewes 11/04/2000 Acorn Publishing Group Ltd 11.00 am Chorley BPS Shipping Ltd 11.00 am London Direct Furniture Co (SW) Ltd - The 11.00 am Bristol E J Holt (Precision Engineers) Ltd 11.30 am Durham Famous Clothing Ltd 03.30 pm Kingston-u-Tham Foodtech Engineering Services Ltd 11.00 am Sandbach Heskins & Newman Ltd 11.30 am London Hood Engineering Services Ltd 11.00 am Sunderland J B Drivers Ltd 12.00 pm Ashford Keystone Properties Ltd 12.00 pm Sutton Law Marketing Services Ltd 11.00 am Chorley Lifetime Contracts Ltd 11.00 am Chorley Mac Batteries (UK) Ltd 11.30 am Lutterworth Marble Arch Auto Stores Ltd 02.30 pm Gerrards Cross Wild Jack Henrys Familys Restaur Ltd 12.00 pm London
TW LW TW LW
USA 1.59 1.57 Canada 2.31 2.32
Austria 22.64 22.41 Portugal 329.97 326.56
France 10.79 10.68 Belgium 66.39 65.70
Finland 9.78 9.68 Italy 3186.99 3153.97
Germany 3.22 3.18 Sweden 13.72 13.71
Holland 3.62 3.58 Switzerland 2.61 2.62
Spain 273.86 271.03 Ireland 1.29 1.28
Australia 2.59 2.59 Denmark 12.24 12.13
Hong Kong 12.38 12.27 Euro 1.64 1.62
Africa Com 10.29 10.19 Saudi Arabia 5.96 5.91
India 69.34 68.69 Malaysia 6.04 5.99
Singapore 2.72 2.70 Norway 13.35 13.29
Japan 169.58 167.15
TW This week LW Last week.
House of Fraser, the department store group, announced pre-tax profits of 30.4 million pounds, after exceptional credit, on turnover of 818.8 million pounds, for the year ending 29th January 2000. Earnings per share stand at 4.4p.
T J Hughes, the discount store group, announced pre-tax profits of 6.51 million pounds, on turnover of 125.8 million, for the year ending 29th January 2000. Earnings per share stand at 17p, on increased capital.
Linden, the housebuilders, announced pre-tax profits of 10.8 million pounds on turnover of 110.8 million, for the year ending 31st December 1999. Earnings per share stand at 33.7p on increased capital.
Signet, the jewellery retailer, announced pre-tax profits of 127.7 million pounds, on turnover of 1,137 million, for the year ending 29th January 2000. Earnings per share stand at 5.3p.
MERGER CLEARANCE
The Secretary of State for Trade and Industry has decided, on the information at present before him, and in accordance with the recommendation of the Director General of Fair Trading, not to refer the following merger to the Monopolies and Mergers Commission under the provisions of the Fair Trading Act 1973:Acquisition by News Communications & Media Plc of the Hampshire Chronicle Group.
Proposed acquisition by Menzolit-Fibron GMBH of the Compounds division of DSM Resins BV, namely DSM Compounds UK Limited
Proposed acquisition by Royal London Mutual Insurance Society Ltd of United Assurance Group plc.
Proposed acquisition by Clariant AG of BTP plc
Acquisition by Morgan Grenfell Private Equity of 12.5% shareholding in Slec Holdings Ltd the parent of Formula One Administration Ltdand Formula One Management Ltd
Completed acquisition by Novartis Pharma AG of Vericore Holdings Limited
Consumer groups from 27 countries have joined forces to sweep the Internet for "get rich quick" scams.
The Office of Fair Trading, the Highland, Essex, Milton Keynes and Sutton trading standards authorities and LACOTS (The Local Authorities Coordinating Body on Food and Trading Standards) were among 143 organisations from five continents who took part in GetRichQuick.Con, an initiative led by the USA's Federal Trade Commission.
Using specific key words, they surfed the net for three hours looking for bogus homeworking schemes, business and investment opportunities, lottery schemes, pyramid or multi-level marketing plans, money-making clubs and chain letters. Bogus schemes are often characterised by exaggerated earnings claims, glowing testimonials, "no risk" guarantees and legal assurances.
The participating UK consumer groups found nearly 100 potentially misleading websites, including a number based in the UK. Examples of dubious claims found included:
* 'The most amazing discovery about creating financial wealth and freedom is simply too easy to believe. You can turn your business into a money making machine within the next 30 days!'
* 'Discover how this money making programme could earn £20,000 a month part time. It's the best business I've ever seen!'
* 'This opportunity offers you the chance to become a dollar millionaire - for a one-time payment of just $25.00.'
John Bridgeman, Director General of Fair Trading, said:
'People should be very wary of claims that large amounts of money can be earned for little or no effort or in an extremely short timescale. If something sounds too good to be true, then it probably is.'
Suspect sites are now being sent e-mails warning that there might be legislation regulating their activity and providing links to the participating consumer groups' websites. They are also being reminded that it is not necessarily the law of the country in which they reside that will apply to their activities.
The participating consumer groups will continue to monitor the sites to see if they change their claims in response to the e-mail messages. Sites that continue with potentially deceptive, misleading or false claims will be referred to the respective enforcement bodies with a view to action being taken.
John Bridgeman said:
'This exercise has been an example of international co-operation in practice, aimed at maintaining an enforcement presence on the Net and educating web site operators about existing legislation. I very much welcome the valuable contribution made by the trading standards community to this effort'.
This is the third time the OFT has participated in a global sweep and is the largest so far. The last sweep, which looked at misleading health claims and miracle cures, identified worldwide more than 1,000 dubious websites.
A list of surfing partners and copies of the consumer and business education material associated with "GetRichQuick.Con" are available from the Federal Trade Commission's web site at http://www.ftc.gov and at http://www.consumer.gov/bizonline. General information about online scams can be found on the OFT's online shopping advice web pages at: http://www.oft.gov.uk/html/shopping/index.html
LACOTS is a coordinating body giving advice, guidance and information on consumer protection, trading standards, food safety and composition and regulatory best practice to UK local government enforcement authorities.
The Department of Trade and Industry has responsibility for monitoring and enforcing legislation on Trading Schemes as contained in Part XI of the Fair Trading Act 1973 (as amended by the Trading Schemes Act 1996) and the Trading Schemes Regulations 1997 made under that Act. Such schemes (commonly known as multi-level marketing, pyramid selling, network marketing, or direct selling) are not illegal but they must comply with the legislation. A booklet "The Trading Schemes Guide" outlining the rules can be viewed on DTI's website: http://www2.dti.gov.uk/access/trading/intro.htm. DTI can neither give legal advice about individual schemes nor can they approve them. It recommends that anyone considering setting up a trading scheme in the UK should seek independent and impartial business and legal advice.
Trading standards authorities enforce the Trade Descriptions Act 1968. Under the Act, it is a criminal offence for a trader to make false statements about goods offered for sale. This also applies to services, but in this case an offence is committed only if the trader knows, or does not care, that statements are misleading.
Under the Control of Misleading Advertisements Regulations 1988, the Director General of Fair Trading can apply to the High Court for a court injunction preventing the further publication of a misleading advertisement. The Director General's role under the Regulations is to support and reinforce the existing advertising controls. Most complaints about misleading advertising are handled by the Advertising Standards Authority or trading standards authorities. Where they are unable to take effective action, the Director General will consider taking action.
Chain letters, where participants are invited to send money, may be illegal under the terms of the Lotteries and Amusements Act 1976 (for which the Home Office is responsible). They may be held to constitute a lottery when they have the overall object of distributing the money by chance. Lotteries are unlawful in Great Britain unless expressly permitted by statute. Whether or not a particular scheme constitutes an unlawful lottery is a matter which only a court can define authoritatively. In Northern Ireland, the law on lotteries is contained in the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985. This legislation, although not identical, is very similar to the Lotteries and Amusements Act.
CLOSING THE UK'S DIGITAL DIVIDE - HEWITT AND WILLS
The Government last week warned that people living in our most deprived neighbourhoods risk being excluded from new technologies like the internet and email and outlined the ways the Government will tackle the digital divide.
Champion Minister Patricia Hewitt and Learning and Technology Minister Michael Wills launched 'Closing the Digital Divide' a report by the Policy Action Team 15 (PAT 15). They also announced a new initiative that will track access to new technologies, giving an annual snapshot of e-Britain.
Ms Hewitt said:
"To prosper nationally and compete globally we need to empower all our people to play an active part in society. That it why it is vitally important that everyone has access to new and emerging technologies like the internet and email. The Prime Minister recently set the target of everyone in the UK having an email address by 2005."
"We cannot risk leaving behind people living in our poorest communities. We must close the digital divide so everyone can reap the benefits of living in an e-nation. Government, business and voluntary and community organisations must work more closely together to help achieve this aim."
"Mr Wills added:
"The very technology that has the power to empower us all also has the potential to increase the problems of social exclusion unless we act to bridge the digital divide. This report will help shape and drive the work that is already under way to close that divide. I am also pleased to announce that we will be tracking access to new technology, the information will help us monitor the impact our work is having and to target resources on the groups most at need.
"This Government is determined to help bring us all into the Information Age. We are investing more than £1 billion in schools' ICT up to 2002 and this is already having a major impact - increasing schools internet access and improving teacher training. Our work aims to bring people of all ages from all over the UK into learning.
"A £252 million initiative is underway to create 1,000 new technology training centres to local neighbourhoods, with centres based in sports clubs, pubs, schools, houses and churches. In May we will be giving every jobseeker a voucher for free computer training - worth around £400 each. This report will help ensure that we build on this work to build a modern, socially inclusive e-Britain."
The report recommends that:
The two ministers were speaking at the East London Creative Centre of TS2k, an organisation which provides young people with training and employment opportunities for careers in the creative industries. The Ministers met participants from TS2k's web design course who developed the PAT 15 website www.pat15.org.uk
TS2k's Deputy Chief Executive, Mandy Berry, said:
"TS2k provides access to ICT skills training for people in some of the most deprived parts of the UK and can point to numerous examples of how this is reducing social exclusion and strengthening community ties.
"By developing partnerships with industry TS2k is providing paid opportunities for its participants to further advance their skills and pursue the career of their choice. I am confident that our successes will spread as the TS2k approach is extended and replicated around the UK."
Ms Hewitt added:
"The Information Age is changing how we work, how we learn, how we spend our free time. It is changing how we communicate and interact with each other. And the new technologies have become an integral part of how society works.
"But we have to make sure that the new technologies are relevant to people. That is one of the most powerful ways to engage those who think that the Information Age holds nothing for them.
"And we need sensible funding regimes. We need to develop short-term projects into lasting sustainable provision. This co-ordinated and strategic approach which we are proposing today will build on the good work already being done."
Examples of how ICTs can help people in disadvantaged communities:
The PAT 15 report is downloadable from the PAT 15 website http://www.pat15.org.uk. For a copy in either CD Rom or printed form, contact the DTI Publications Orderline, ADMAIL 528, London SW1W 8YT.
Summaries of the PAT reports published to date can be found on the Social Exclusion Unit's website: http://www.cabinet-office.gov.uk/seu/index.htm.
Policy Action Team (PAT) 15 was asked by the Social Exclusion Unit to look at what needed to be done to increase the availability and take-up of communications and information technology for people living in poor urban neighbourhoods.
Many of the specific recommendations made by the PAT are being considered as part of the current Government Spending Review.
TS2k was established in 1996, TS2k is a skills charity which aims to directly help young unemployed people discover their creative talents, build skills and secure work in the creative industries. Through its creative Enterprise Centres in Brixton and Shadwell, it runs free training courses covering a variety of areas including TV and film production, journalism, performance, event management, website design and music promotion. TS2k also provides mentoring, careers advice and work experience placements for people on its courses. Since it was established more than, 12 000 people have participated in TS2k programmes and events, with over 60 per cent coming from black, Asian and minority ethnic communities.
17 April 2000 Wessex branch meeting of the ICM The Budget Presentation by Ian Nichol from PricewaterhouseCoopers The Southampton Yacht Club 1 Channel Way, Southampton 7.00pm for 7.30pm 26th April 2000 Companies House Seminar Pine Lodge Hotel Kidderminster Road Bromsgrove B61 9AB Registration 5.30pm - 6.00pm Seminars include a question and answer session and buffet 6.00pm - 9.00pm Cost 37.60 pounds Contact Tamara Bent tbent@companieshouse.gov.uk +44 (0)29 20380911 23 May 2000 The ICM National Conference and Exhibition Cumberland Hotel, Marble Arch, London W1 Credit Management in the Electronic Age For more details of the Conference or to exhibit phone the ICM Training department on 01780-722907 Tuesday 3 October 2000 ICM Credit Scotland 2000 (Conference and Exhibition) Hampden Park Football Stadium, Glasgow Anyone interested in attending (or exhibiting) should contact David Ancliffe on (0131 200 8686). Friday 20 October 2000 Millennium Annual Dinner of the ICM Drapers Hall, City of London.
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