"Register sharks" and their methods
The victims are small businesses or the self-employed: They’re expected to shell out a small fortune for an entry in a useless industry directory or a pointless advertising contract. But it is possible to successfully defend yourself against these “directory sharks.” By Michael Krampf, lic.iur., attorney, lawyer, and editor at the Beobachter Advisory Center.
Have you ever received an invoice for several thousand francs and didn't know what it was for? If so, you've probably been taken in by a register shark. This is the name given to companies that try to entice small businesses and the self-employed to make an entry in a business register or to place an advertisement in an information brochure. In both cases, this is supposed to be low-cost advertising. However, the address directories hardly attract any attention. And the brochures are distributed in a small print run of a few hundred copies, if at all. The victims often only realize that they have signed a contract when they receive the invoice. The term is between one and three years, depending on the provider. The price is well hidden in the small print and can amount to several thousand francs.
The fraudsters usually use one of the following methods:
- You receive a form in the post asking you to check all the details of the "desired" contract. You confuse this with a free entry in the official telephone directory and sign a multi-year contract for a business directory.
- They claim on the phone that they have an ongoing advertising contract with you. If you wanted to terminate this, you would have to return a form sent to you by fax. In reality, you are placing a costly order with this fax.
- You receive an invoice that looks as if it came from the commercial register office where you recently applied for a change. By paying the invoice, however, you conclude a contract for a branch register.
If you have been tricked by a register shark and do not pay the bill, you are in for an unpleasant time. First you receive several reminders. Later, a debt collection agency threatens you with debt collection. However, you can defend yourself against this:
- Inform the provider immediately by registered letter that you have been misled and are therefore contesting the contract.
- If you are being pursued, file an objection to the payment order immediately.
- If legal proceedings are initiated, you can comment on the application. Take this opportunity and try to convince the court that you have been tricked. The best way to do this is to submit existing judgments and press articles from the Beobachter and other magazines about the provider.
- If you also wish to take criminal action against the provider, file a report with the police at your place of business for misleading advertising. The police must forward the report to the competent criminal authority.
Book tip
Book set OR and ZGB for everyday use
Get authoritative answers to your everyday or specific legal questions: complete legal texts with reader-friendly commentaries, court rulings and many examples.
Revised and updated edition September 2008
Beobachter-Buchverlag,
ISBN 978-3-85569-409-9,
2 volumes bound in a set
only Fr. 99.-
New for SMEs: legal advice on issues affecting your company
The Beobachter's new service: competent legal advice for SMEs and their employees. 6 months for only Fr. 99.- (introductory price).
You can reach the legal experts Monday to Friday from 9 a.m. to 1 p.m. on 043 444 54 09. You also have full access to the advice platform Helponline.ch and an Beobachter magazine every 14 days. The price also includes a gift: the standard work for SMEs from Beobachter-Buchverlag,
"How to get your money", worth CHF 48.
Order the consulting subscription for SMEs at: www.werbewoche.ch or by phone: 0800 83 0800.
The fraudsters usually use one of the following methods:
- You receive a form in the post asking you to check all the details of the "desired" contract. You confuse this with a free entry in the official telephone directory and sign a multi-year contract for a business directory.
- They claim on the phone that they have an ongoing advertising contract with you. If you wanted to terminate this, you would have to return a form sent to you by fax. In reality, you are placing a costly order with this fax.
- You receive an invoice that looks as if it came from the commercial register office where you recently applied for a change. By paying the invoice, however, you conclude a contract for a branch register.
If you have been tricked by a register shark and do not pay the bill, you are in for an unpleasant time. First you receive several reminders. Later, a debt collection agency threatens you with debt collection. However, you can defend yourself against this:
- Inform the provider immediately by registered letter that you have been misled and are therefore contesting the contract.
- If you are being pursued, file an objection to the payment order immediately.
- If legal proceedings are initiated, you can comment on the application. Take this opportunity and try to convince the court that you have been tricked. The best way to do this is to submit existing judgments and press articles from the Beobachter and other magazines about the provider.
- If you also wish to take criminal action against the provider, file a report with the police at your place of business for misleading advertising. The police must forward the report to the competent criminal authority.
Book tip
Book set OR and ZGB for everyday use
Get authoritative answers to your everyday or specific legal questions: complete legal texts with reader-friendly commentaries, court rulings and many examples.
Revised and updated edition September 2008
Beobachter-Buchverlag,
ISBN 978-3-85569-409-9,
2 volumes bound in a set
only Fr. 99.-
New for SMEs: legal advice on issues affecting your company
The Beobachter's new service: competent legal advice for SMEs and their employees. 6 months for only Fr. 99.- (introductory price).
You can reach the legal experts Monday to Friday from 9 a.m. to 1 p.m. on 043 444 54 09. You also have full access to the advice platform Helponline.ch and an Beobachter magazine every 14 days. The price also includes a gift: the standard work for SMEs from Beobachter-Buchverlag,
"How to get your money", worth CHF 48.
Order the consulting subscription for SMEs at: www.werbewoche.ch or by phone: 0800 83 0800.
