Marketing "scam" pinpoints VARs

Mexican firm preys on channel players with misleading offer of free exhibition listing

What's the catch: Expo Guide hides the true cost for signing up to its listings in the small print

Channel firms have been urged to look out for a scheme designed to trick companies into signing away recurring marketing fees.

A Mexican company called Expo Guide has been contacting channel players purporting to offer a free listing in its attendee guide for the up­coming Wireless and Mobile event. Firms are asked to respond and confirm their details to be included in Expo Guide’s paper and online publications on upcoming exhibitions.

But the form’s small print outlines that respondents agree to a three-year contract costing about £1,000 a year.

“Expo Guide reserves the right to initiate legal proceedings at the contractor’s place of business and to transfer rights and obligations related to this order to third parties,” it says.

Imago Communications organises the Wireless and Mobile exhibition. In an email seen by ChannelWeb, Richard Gayle, Imago business development consultant, revealed the firm will contact exhib­itors to urge diligence.

“Please under no circumstances sign anything from this company,” he wrote. “Exhibitors that inadvertently sign these documents are quickly faced with having to deal with a very aggressive debt coll­ection agent.”

Distributor Wick Hill alerted ChannelWeb to the scheme. Marketing manager Barry Mattacott said: “We have uncovered a scam. We need to let other channel organisations know about it.”