Anyone starting a business initially struggles through numerous forms, letters, and applications. It's easy to lose track of what's really important and correct. Unfortunately, fraudsters also take advantage of this. Then, after registering the business, dubious letters arrive via so-called "address book or register entries," which are pure rip-offs. Thousands of companies fall into this trap every year. They sign official-looking forms and thereby conclude expensive contracts. These can easily cost several thousand euros per year! Svenja Hartmann, expert for intellectual property rights at Munich Chamber of Commerce and Industry, explains how startups can protect themselves from this.
What is the scam of the so-called “address book scammers”?
Entrepreneurs receive – often shortly after the company has been founded and the new company has been registered in the commercial register – forms designed in a manner similar to those issued by government agencies, which reproduce their official registration data from the business registration or the commercial register entry and which deceive them into believing that they are obliged to “correct/register” this data.
Especially during the founding process, a startup receives many letters from offices and authorities, so that in day-to-day business it can easily happen that the “form” is not read in detail and, above all, the small print is overlooked.
If the victim signs, they often enter into multi-year, extremely costly contractual relationships with dubious address book and register publishers (often using mailbox addresses) from Germany and abroad due to the conditions contained in the small print. The costs range from at least 300 to 900 euros or more.
Be suspicious and ask if in doubt
How can startups identify dubious providers and protect themselves?
Before signing a form, you should read it completely and carefully. Even if it says "offer," "free," "free of charge," or "correction," that doesn't mean the fine print doesn't indicate a charge, which you acknowledge with your signature.
Likewise, you should be cautious with invoices containing design and name elements (e.g., the federal eagle, the federal flag) that are otherwise reserved for offices and authorities. Also be suspicious if:
- the name of the publisher is not clearly visible;
- the publisher’s registered office is abroad;
- only one (foreign) fax number is visible;
- a completed transfer form is enclosed;
- Representatives appear unannounced and refer to calls that never actually took place;
- During a telephone call, you are urged to sign and send a form.
If you are unsure whether a form is legitimate and whether there is actually an obligation to sign and/or pay, ask your local Chamber of Commerce and Industry.
What should you do if you have fallen into the trap and signed?
Dispute the contract due to fraudulent misrepresentation or error regarding an existing contractual relationship. At the same time, the contract should be terminated as soon as possible. This will avoid an automatic renewal of the contract, which is usually also hidden in the fine print. If you have already paid money, request a refund along with your dispute. Send the dispute and the termination by registered mail with a return receipt (according to the scammers' terms and conditions, fax is often not sufficient) and be sure to keep a copy of the original and the proof of delivery (of the registered mail) for evidentiary purposes. This way, you have proof of receipt of the termination or, if necessary, proof of incorrect postal information provided by the sender. If the payment was only made a few days ago, you may still be able to cancel your transfer order. Check with your bank.
Reminders up to aggressive reminder letters
The provider continues to insist on payment despite the dispute or termination. What now?
Based on our previous experience with dubious directory publishers, they continue to insist on payment of their claims even after contestation and/or termination. Those affected often receive:
- References to the legal situation from the perspective of dubious directory publishers;
- Old rulings in favor of the rip-off artist;
- Reminders up to aggressive reminder letters;
- Letters from debt collection agencies and/or lawyers;
- Threat of legal action and payment notice, threat of Schufa entry and compulsory enforcement (but this is only possible after a legally binding title has been issued by the courts!);
In specific individual cases, dubious conduct by an address book publisher can have consequences under competition law, commercial law and even criminal law.
Therefore, inform:
- Your responsible Chamber of Commerce,
- the German Protection Association against Economic Crime
- the nearest police station or public prosecutor's office
Where else can I find information?
Under https://www.ihk-muenchen.de/abzocke/
There you will find the Chamber of Commerce and Industry (IHK) rip-off flyer and the IHK leaflet, which contains a sample declaration of contestation and termination.
