FTC Stops “Fair Guide” Multi-Million Dollar Rip-Offs in the U.S.

The Federal Trade Commission ("FTC") has temporarily halted operations of a Slovakian-based trade show guide’s publisher for allegedly scamming many small businesses and non-profits by pressuring them into paying for worthless online directory listings that they didn’t authorize. According to the FTC, Construction Data Publishers, doing business as The Fair Guide, sent out mailings to retailers, local associations, non-profits, and others who attend trade shows. Implying that the business has dealt with Fair Guide in the past, the businesses were asked to check the accuracy of the information on a form. Stating that the information was listed in a free “exhibitors directory,” the recipients were instructed to check and update their information for a routine confirmation regarding a specific trade show. Hidden in the fine print was a statement that stipulated by signing the agreement, the company agreed to pay $1,717 a year for three years. Further, the form was often returned by employees who were not authorized to enter into contracts for their employer.