Islington Council has been granted an enforcement order to stop the owner and manager of a failed ticket agency from carrying out business in a way that is unfair to consumers.<br><br>On 22 June, Central London County Court heard how during 2003 and 2004, Rebecca Henderson and Matthew Blackaby, both of Romford, Essex were running a business known as Select Promotions from Leroy House, 436 Essex Road, London N1. <br><br>Select Promotions traded over the internet via its website and had been selling tickets for various sporting events such as Euro 2004 and Wimbledon as well as concerts for Sting, Madonna, Eric Clapton and others.<br><br>In the summer of 2003, the council’s trading standards team began to receive a steady trickle of complaints about non-delivery of tickets to consumers along with other concerns about the unauthorised use of logos. Henderson and Blackaby were subsequently visited and warned by trading standards about their conduct and asked to improve their trading methods. All advice was ignored. <br><br>Matters took a turn for the worse in June 2004 when UEFA, European football’s governing body, won a High Court injunction ordering them to stop selling tickets and hospitality packages for Euro 2004 after they described themselves as the ‘UEFA official Euro 2004 ticket guide’. Shortly after the injunction, reports were then received by trading standards that the business was not answering its phones and had left their offices.<br><br>Over 450 complaints from angry purchasers quickly flowed in to the council from all over the UK, Europe and beyond. In court, details of 140 private consumers who lost money were presented to Judge MacKie CBE QC as good examples of Select’s appalling business practices. Businesses who purchased corporate hospitality packages also lost out heavily.<br><br>The investigation by trading standards and the police revealed losses running into millions of pounds. Although many private individuals lost money to Select, credit card companies also lost out. The card issuers were faced with no option but to issue refunds to customers where the cost of the ticket was over £100 due to their liability under the Consumer Credit Act. But other Select customers who paid by debit card or cheque were not covered by this protection and they lost considerable sums in the process.<br><br>The order granted follows proceedings brought by the council under the Enterprise Act 2002. The effect will be to prevent either person from contravening the Consumer Protection (Distance Selling) Regulations 2000 for the next seven years.<br><br>Specifically this means that they must:<br><br>· stop failing to perform a contract within 30 days unless otherwise agreed with the customer.<br>· stop failing to give refunds when the contract cannot be completed.<br><br>If during the period between the hearing and 21 June 2012, they are found to have breached the order then they may be in contempt of court and could face imprisonment. In addition, the council was awarded legal costs of £8,250.<br><br>The Metropolitan Police are conducting their own fraud inquiry into Select Promotions. <br><br>Executive Member for Customer Focus, Councillor George Allan today praised the council’s trading standards officers for their diligence in preparing a successful case against Select Promotions. <br><br>"We will use our powers to stop consumers being ripped off, whether they shop in the high street or over the internet.<br><br>The new number for trading standards advice - including complaints about local businesses and consumer rights advice - is 08454 04 05 06.”<br><br><br>Notes<br><br>UEFA took action against the trader in March 2004. Their High Court injunction prevented Select Promotions from supplying any Euro 2004 tickets and they were also fined £20,000. Select were also ordered to contact affected consumers. <br><br>The latest order obtained by Islington Council has been obtained under relatively new powers given to trading standards under Part 8 of the Enterprise Act 2002 and is believed to be the first of its kind to be heard at the Central London County Court.<br><br>Part 8 of the Act is designed to help tackle rogue traders and prevent trading practices that are detrimental to the consumer. Where a pattern of unfair trading practices can be shown and advice has been ignored, there is scope for undertakings to be sought from a trader. Enforcement orders can be applied for when any undertakings are not taken up or breached. Proceedings take place in the County Court as opposed to the criminal courts. Since the Act came in to force, the Office of Fair Trading have estimated that some 20 orders have been granted and traders have signed 200 sets of undertakings across the UK.<br><br>Islington Council took the decision to go ahead in the civil courts in order to avoid a large number of witnesses having to attend a criminal court should a prosecution under the Consumer Protection Act 1987 been undertaken. The action may also be more effective in preventing consumer detriment in the future if Blackaby and Henderson set up business elsewhere (as has happened in the past with other rogue traders and so called ‘phoenix’ companies).
Page Last Updated: 17 December 2009