BUSINESS groups are warning small firms to be vigilant after a Swiss-based debt recovery agency contacted more Irish companies demanding payment for being listed in a “bogus” business directory.

The Fairguide is an online directory produced by Construct Data Verlag, an Austrian firm that is currently facing injunction proceedings there to prevent it from collecting debts from companies invoiced for appearing in the guide.

It is alleged that the company uses misleading tactics to fool companies into believing that the listing is free by sending out mailshots to exhibitors at trade fairs who mistakenly consider it to be a communication from the fair organiser.

Some Irish businesses have returned the form expecting a free listing in the Fairguide, not realising that the small print commits them to paying several hundred euros a year for the service.

One Dublin-based technology company was last month threatened with court action by Premium Recovery, the Swiss debt recovery agency that acts on behalf of Construct Data Verlag and Fairguide, over an alleged €2,252 debt. Premium Recovery is not subject to the Austrian injunction proceedings.

The director of the Irish firm then contacted Swiss authorities to complain, who replied that there is legal action pending against Premium Recovery over what a Swiss government department has termed its “dubious business practices”.

“A significant number of Irish companies have been targeted by this scam. It’s not just one or two,” said Patricia Callan, assistant director of the Small Firms Association, which has received a large number of complaints from its members about Construct Data Verlag. “Companies should ignore their threats of legal action and definitely don’t send them any money.”