Skipping small print can costa packet

Watch out if one of these comes in the postbag.

A Spanish company once shut down for dodgy advertising is up to its old tricks again - and small businesses are being warned to be on their guard.

Barcelona-based European City Guide (ECG) was shut down and fined £200,000 in 2003 for giving the impression that inclusion in its directory was free.

But buried in the small print of the paperwork it sent out to thousands of businesses was a catch.

Firms which signed and returned the form requesting inclusion in the directory found themselves committed to paying thousands of pounds.

The UK's Office of Fair Trading received more than 280 complaints, and with the help of the Catalan authorities tracked down the company.

Back in business

But the Federation of Small Businesses (FSB) says it now has proof that ECG is back in business, and is once more targeting small business with misleading mailshots.

Having relocated to Valencia, the company is mailing out new forms telling unwary customers that ECG is compiling information for a CD-Rom.

Businesses are asked to confirm their details and return the form. "The updating is cost free," it says at the top of one of the forms faxed to BBC News Online.

But the small print at the bottom of the same form reveals that signing commits the unwary company to having their details inserted in the next three editions of the guide - at a cost of 971 euros ($1,192; £611) for each version.

"Small employers have little time to go through all their mail with a fine-tooth comb," the FSB said.

"Unfortunately, this makes them targets for companies like ECG."

"The FSB advises small businesses to make sure they always read the small print before they sign anything. If they are ever in doubt they should contact the local trading standards office."

European City Guide confirmed to BBC News Online that the Valencia operation was indeed the same company that was previously tracked down to Barcelona.

But the company refused to comment on the latest allegations by the FSB.