Get the lowdown on more dodgy practices traders use to try and swindle you out of your money.
Earlier this week, I wrote about 10 selling practices banned earlier this year under new regulations designed to protect customers from unscrupulous selling.
The Office of Fair Trading has outlawed 31 dodgy practices used by traders to try and rip you off.
Thanks to the new regulations, if you, the consumer, come across any of the banned practices, you now have the power to take action and report the trader to Consumer Direct, who can pass on the complaint to Trading Standards.
So without further ado, here's what you need to know about the remaining 21 practices I haven't yet covered..
1) Hidden advertising
Let's say a holiday company pays a magazine to advertise their diving school. The magazine must make it clear on the page that this is an `advertising feature', otherwise it will be in breach of regulations.
2) Schemes to scare
Traders mustn't sell a product by inaccurately claiming that if you don't buy the product you could be putting yourself at risk. So, for example, traders mustn't try to sell you a personal alarm device by claiming the area you live in has a particularly high crime rate, when this is not the case at all.
3) False impression about the manufacturer
If, for example, a trader designs a bottle of shampoo so that it looks very similar to a shampoo bottle made by a well-known competitor. If he deliberately tries to make you believe the two bottles of shampoo were made by the same company, he is in breach of regulations.
4) Pyramid sales schemes
Traders mustn't promote a scheme which says if you pay a membership fee to join a particular club, you could earn large amounts of money if you persuade other people to sign up as well. Often the club claims there are other benefits to being a club member, but in fact, these benefits are trivial compared with the potential rewards for introducing new members.
5) False claims that a business is closing down
A business mustn't advertise a closing down sale sign when it has no intention of closing down.
6) Claiming a product will give you a better chance of winning
Example: It is illegal for products to claim they can show you how to win the lottery.
7) Miracle cures
A product mustn't say it can cure illnesses when it can't.
8) False claims about market advantage
It is illegal for traders to tell you inaccurate information about the product they are selling in an attempt to make you buy the product. Let's say an estate agent tells you he has recently sold several houses identical to the one you are viewing in the same area at a particular price. If this is not true, he is going against regulations.
9) Prizes given are not as promised or are not given at all
Example: Traders mustn't run a scratch-card prize promotion with a top prize of £10,000 without printing any cards that win the top prize, or printing them, but making them unavailable.
10) Charging for free gifts
Traders mustn't say a product is free if you have to pay anything other than the cost of responding to the offer and collecting or paying for the item's delivery.
For example, if a trader in a mail order catalogue says you will receive a free gift when you order a catalogue, but in fact you will only be given the gift if you place an order for something in the catalogue.
11) Trying to trick you into thinking you have already placed an order
It is illegal for traders to send you an invoice asking for payment which gives you the impression you have ordered something when you haven't.
12) Trader pretending to be a private seller
Example: A car salesman advertises a car for sale in a newspaper but doesn't reveal he is selling the car as part of a business.
13) Misleading you about the availability of after-sales services
Traders mustn't claim that after-sales services for a product will be available in a European Economic Area State* other than the one in which the product has been sold.
14) Creating the impression you can't leave the premises until a contract is formed
For example, if you attend a holiday club presentation at a hotel where intimidating doormen are posted at the exits, giving you the impression you need to sign up before you can leave.
15) Badgering you in your own home
If a trader turns up on your doorstep and you ask him to leave or not to return, he must obey your instructions (unless you owe money -- although there are still rules debt collectors must abide by).
16) Pestering you by telephone
Similarly, traders mustn't make persistent calls by telephone, email or fax (unless you owe money -- although there are still rules debt collectors must abide by).
17) Trying to prevent you from claiming on your insurance policy
If you want to make a claim on your insurance policy, it is illegal for traders to request to see documents which are not considered relevant to the case, or for traders to fail to respond to relevant correspondence, in an effort to stop you from claiming.
18) Advertising to encourage children to buy products
Adverts mustn't include anything to encourage children to buy advertised products or persuade their parents to buy the products for them. For example, a firm cannot advertise a comic book for children and state: `Read about the adventures of Fluffy the Bunny in this new comic book each week - ask you mum to buy it from your local newsagents'.
19) Charging for goods when you didn't place an order -- inertia selling
It is illegal for traders to demand payment for the return or safekeeping of products supplied by them but not requested by you.
For example, if a trader writes to you to tell you about a new dishcloth which he is selling for £2.99 and encloses one of the cloths for you to inspect. He then says if you don't return the cloth within seven days, action will be taken to collect the £2.99.
20) Emotional blackmail
Traders mustn't claim that if you don't buy the product or service, their job or livelihood will be in jeopardy.
21) Prize scams
It is illegal for traders to tell you that you have already won or will win a prize if you take certain action, when in fact there is no prize or by taking action to claim the prize you have to pay money.
For example, if you are sent a letter saying you have won a prize of £3,000, but in the small print it says you must buy a product before being entered into a draw for the money.
Don't forget
If you come across any of the above practices or those mentioned in Part One, you should report them to Consumer Direct who can forward cases onto Trading Standards.
*European Economic Area (EEA) States are all European Member States and, in addition, Norway, Iceland and Liechtenstein.