Two companies that produced a motorbike magazine for the Federation of British Police Motor Clubs (FBPMC) – have been wound up in the high court for misleading advertisers.
Always Enjoyable and Living Creative were closed down following an investigation by the Insolvency Service.
The court heard the companies, under their previous names of Mode Design and Branding Limited and Mode Design and Printing Limited, respectively, sold advertising space in ‘Overdrive’, a magazine affiliated to the FBPMC, which they were supposed to publish on a quarterly basis.
However, the Insolvency Service’s evidence showed that Always Enjoyable had “recklessly misled” customers and used high pressure sales techniques to achieve advertising sales.
The company was found to have:
• Misled customers to believe that it was affiliated with the police and/or the emergency services;
• Misled customers and potential customers into believing that someone within their business had previously agreed to advertise with the company in order to agree a sale;
• Misled customers as to circulation, readership and regional aspect of the distribution of the ‘Overdrive’ publication.
The court also heard that there was little or no commercial benefit to the advertisers.
Living Creative continued the trading model adopted by Always Enjoyable, also had a lack of commercial benefit to advertisers and was the third company, following on from Always Enjoyable and Mode PR (UK) Limited (now in liquidation), which utilised the trading model.
Alex Deane, an investigation supervisor with the Insolvency Service, said: “This company took substantial sums of money from businesses for services which were of little or no commercial benefit and through misleading sales practices.
“Those responsible should be aware that the Insolvency Service can and will take firm action against companies which operate in this manner.”
By Marcel LeGouais