Name and Shame UK
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Are major retailers aware of these dubious advertising practises?
Our correspondent writes ...
Following a long and totally disabling illness I had to give up teaching and lecturing so I set up a very small IT business which is run on a part time basis as energy levels allow.
A salesman from WRT Group plc - also known as Service Point - telephoned persistently and I eventually agreed to meet him at my home. He was offering advertising space on a post box in our local branch of Sainsbury's.
Having heard him out, I declined the offer due to the very high cost. I explained that I could not possibly risk such a large sum of money as advertising in our local newspapers had failed to produce a single customer.
On his way to the door, the salesman turned round and misrepresented (and/or deliberately lied about) several important details. He was now offering a far more attractive deal with much lower costs, including the right to cancel at any time. He said I could have a full refund of all monies paid (except for initial deposit of £157.58 for artwork etc) if no customers came forward. This amount is roughly what I would have spent advertising locally and I thought it was a reasonably good deal. I again asked him to confirm that I could cancel if there were no customers and he once again confirmed the arrangement. That lessened the risk considerably so I signed up and he left. No copy of the "agreement" was left with me.
The artwork arrived after several weeks and it was of extremely poor quality. I decided to design my own artwork which I then sent to WRT. Unbelievably, WRT posted a copy of my own design back to me for approval. At that point, the salesman said the advertising campaign was imminent but they first appeared on the post box months after the suggested timescale he had set out.
The campaign commenced just before Christmas but not a single customer responded - not even during the busy Christmas period - so I wrote a letter of cancellation which I was told I was entitled to do by the salesman.
My first letter was ignored and I later had a phone call demanding money. I explained the situation and was told to email Customer Services. I sent them a copy of my letter.
Other people have since told me that all Customer Services are interested in is prohibiting people from cancelling their contracts and threatening them with legal action. "Don't touch them with a bargepole" is how one of their customers put it.
Eventually, Customer Services and the accounts department at WRT Group plc sent me a letter demanding the balance of the total sum (over £500) and said that I could not cancel. Then a further demand for payment arrived threatening legal action and warning they would use the services of a debt recovery company.
I again wrote to Customer Services repeating the information I had already given them and outlined the problems I had experienced with WRT. I warned them that I would expose them to Watchdog and others and would contact Sainsbury's. Strangely, Sainsbury's seem to endorse this particular company - but for how much longer, I wonder, if they treat customers like this?
As WRT are still insisting on payment of the full amount I plan to contact the managing directors of Sainsbury, Tesco and all the other companies they deal with to let them know how this company treats its customers. I will also contact the OFT, Trading Standards, Which? Magazine and I am seriously considering taking legal action against these sharks. I will demand full repayment on everything plus compensation payments for harassment and the time spent writing letters etc.
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Finally, a more detailed letter arrived stating that an investigation had taken place, that the salesman denied making such claims, that the artwork was satisfactory (don't forget I had approved my own copy), that the timescale was within reason (even by their calculations it was many months late), that I am locked into a full two year contract with them and that there is no facility whatsoever to cancel, despite what their salesman promised. They still insist that I owe them the full amount.
I think their attitude is indecent, dishonest, outrageous, greedy and probably illegal and will be taking legal advice in this matter. I am not on my own. It would appear that others have also experienced similar problems. Just look at comments made on the Internet about this company.
Take my advice - do not even consider dealing with these LIARS and CROOKS.
J Hillman, Gravesend
Neil Sutcliffe of Hastings writes:
I took out advertising with WRT in January 2008. I believed their salesman's pitch where he promised me the advertising would produce more work than I could handle.
For the entire 2 year period I received 2 leads from the advertising. It cost me over £800 pounds to generate £400 pounds of turnover (from the one of the two leads I converted into a job).
I stopped trading in September 2009 as I simply ran out of work due to having no new enquiries.
I am on state benefits and they are hounding for me for my remaining balance of £122.20 which I have refused to pay. I have told them to take me to the small claims court and I will inform the judge as to the reasons why I am not paying the debt and I am confident he will throw the case out.
I have used yellow pages and also the Friday-ad for other advertising sources, both of these are about the same cost and netted my company approximately £80,000 pounds of turnover....enough said.
Geoff Potts of Alnwick writes:
Is this the same company as Balmoral Advertising Services who place boards in Sainsbury's/Homebase etc?
Editorial Comment:
It is indeed. The Balmoral domain name shows WRT as the registrant though it is registered as a non-trading individual hence no address is revealed.
WRT Group is registered as a PLC with an address in Kirkham, Lancashire though they appear to have moved to Blackpool.
J Janes of Sandy writes:
I absolutely agree that this scheme is mis-selling and misleading small businesses or people looking to start a business.
It generates no enquiries and each time I go in my local store where this is advertised, the leaflets with the advertisers details are turned round to show a space-selling feature for Servicepoint.
I am wasting my hard earned money each month and every month.
I have today written to cancel and written to Sainsbury's to ask how they condone this scheme????
Would be pleased to hear from anyone else.
Editorial Comment:
I would be pleased to see how Sainsbury's respond to your question.
Dave Steel of Torquay writes:
My ad went into Torquay Sainsburys two weeks ago. I'm a roofer and it may be because winter is on it's way, but I have 12 jobs on my books. All happy with the quotes and I'm on it! I'm going to get my outlay back within the month! Suppose it depends what the demand is and at what your price is. Meterials, disposal and labour costs. DONT RIP PEOPLE OFF, AND YOU WILL GET WORK!! I'm in the prime rip off business (a roofer) - believe me I can quote daft money - but I want to be recommended - got to start somewhere - DS.
Editorial Comment:
I have always believed that tradesmen who earn a fair day's pay for a fair day's work will never be short of customers. Unfortunately, as Dave says, there are too many traders whose sole ambition is to earn rip-off wages for doing as little work as possible.
Peter Beckenham of Chippenham writes (on 29th Feb 2012):
I was approached by a sales rep. to advertise business cards in Sainsbury's Chippenham. I was told of great success stories and quite liked the format.
I own a small snooker club and felt that people would respond to a card that resembled a membership card with various discount benefits. I was told that the board would appear in the main exit 'by the brochures'. The artwork was good and the campaign started early in January. By the end of January, I had received no enquiries so went to the location to see my adverts. At first, I was unable to find the board but eventually located it in a quiet backwater ... not where I was told it would be.
I complained to the customer services, only to be told that i 'would have signed a location sheet'. I signed no such sheet and, upon going through the duplicate forms left with me by the rep. there is no location sheet. I contacted another advertiser who was similarly mis-sold the product and they too have received back no enquiries (6 weeks later).
I have put my views in writing to WRT and have cancelled my DD. As yet I have not had a reply...but no doubt it will end up in court.
Be advised..stay away from WRT Group!!!
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Editorial Comment:
The WRT Group - based in Kirkham, Lancashire - appear to have started life as printers producing Neighbourhood Watch leaflets for various police forces. Like several other print companies, they later expanded into web design and advertising/promotion.
In my "other" life, I came across many high-profile telesales companies and they all had several things in common. They made extravagant claims about the success of their services, they used devious sales tactics, they charged extortionate prices, and most seemed to be based in Lancashire. That's not said as a Yorkshireman trying to perpetuate the War of the Roses but simply as a matter of fact.
In this case, there are many similarities with cases I have investigated in the past. But the most alarming factor is that WRT use the facilities of major companies like Tesco, Sainsbury's, Debenhams, Focus, Wickes, Homebase, W H Smith's and retail shopping centres to sell a service that apparently produces little or no benefit for the paying client. In other words, they are taking money under false pretences using salesmen who have no qualms about lying to procure the business. So the question that arises is ... do these major retailers know how their "partners" work? Do they even care?
If you have had a similar experience, please let us know.