The OFT has received undertakings from the former directors of two publishing companies that were selling advertising space to small traders by giving the impression, in the OFT's view, that they were connected to the police and emergency services.
Cavendish Black Ltd and McAllister Stone Ltd were also giving the misleading impression that some traders had placed ads when they had not, according to the OFT – although the directors deny that the ads themselves were misleading.
The DTI has put both companies into compulsory liquidation, but the OFT took the added precaution of securing undertakings from the former directors to regulate their future conduct.
John Fingleton, OFT Chief Executive, said that if the individuals breach the undertakings, the OFT has the powers to get an injunction in the courts.
The OFT has powers under the Control of Misleading Advertisements Regulations of 1988 if an advertisement is misleading (i.e. it must deceive or be likely to deceive the recipient and affect their economic behaviour, or for those reasons, harm the interests of a competitor), and is published in connection with a trade, business, craft or profession, in order to promote the supply or transfer of goods or services, immovable property, rights or obligations. The OFT can take action against anyone appearing to be concerned or likely to be concerned with the publication of a misleading advertisement.
