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.
