The companies send out a highly misleading mailshot to exhibitors asking them to update their free listing, but in reality, simply by updating and returning the form, exhibitors are actually signing a contract binding them to a three-year agreement, costing a significant amount per year. All the legal essentials and prices are hidden away in the small print - and the contract is then self-perpetuating unless cancelled in writing.
The companies will then refuse to cancel the 'order' and will aggressively pursue payment and threaten legal action. They apparently operate on the '10% Rule' - based on the fact that when threatened repeatedly, approximately 10% of people cave in and pay up. They often accept part payments since they are offering no service to speak of and any money they can weasel out of people is sheer profit. While they routinely threaten court action, they rarely, if ever, back this up as it would involve them traveling to the country in which the exhibitor is based in order to pursue them in court, and they won't do that for fear of unwanted publicity.
Visit the website below to read more about some of the current companies that use these tricks to net their victims. If anyone has found himself or herself in this situation, please e-mail to the address below and the PLASA Association team will do all it can to help.
(Sarah Rushton-Read)