Hang up on cold callers, says OFT

The OFT is also concerned about false claims that businesses have already agreed to buy advertising space and demands for payment when no such agreements have taken place.

"Small businesses are particularly vulnerable to these types of unfair business practice," said Sir John Vickers, OFT Chairman. "We advise all businesses to be wary: don't be pressured or tricked into agreeing to advertising you don't want or into paying for something you haven't requested."

The OFT is considering a number of complaints about misleading claims and, empowered by the Control of Misleading Advertisements Regulations 1988, will take enforcement action against those who make them where appropriate.

The OFT offered the following tips for avoiding cold call scams:

• don't take unsolicited calls when you are busy and can't give the salesman your full attention - if you want to talk, ask them to call back at a convenient time;
• don't agree to something on the phone just to get rid of a persistent caller – legally binding agreements can be made over the phone;
• be wary of unsolicited callers suggesting or implying that you are placing an order or entering an agreement when you don't wish to do so;
• be wary of follow-up calls – you may think they're just verifying details, but they may be trying to trick you into entering into an agreement;
• if you're not clear about any details, don't be rushed – ask questions; and
• don't be pressurised into paying for services you haven't agreed to, that haven't been provided or that don't match those agreed to: if you are threatened with debt collectors or a credit black-listing, remember that ultimately only a court can decide whether you are liable to pay and disputes with another business will not necessarily affect your credit rating.

Businesses should also remember that they have the same right as individuals to block cold calling by marketing firms. They can do this simply by registering with the Telephone Preference Service (TPS). Registration is free and can be done via the link below.

Direct marketing firms have a legal obligation to check and comply with the TPS before calling and failure to do so can result in enforcement action by the Information Commissioner.