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SCAM SAVVY - SPOTTING THE CONS
The costs and formalities of a French startup are so pervasive that
the unsuspecting entrepreneur may not always notice when an abusive
demand for money lands on his desk. Here are a few scams to watch out
for.
- Police, customs and other “official” guides and directories: The
fear of authority is put to use here. Passing themselves off as tax or
customs officials, pushy salesmen try to pressure you into buying ad
space in “administrative publications”. The inference is that, if you
sign up, you’ll be protected from tax problems and might even receive
special favours. The Ministry of Finance tells us that it prints no
publication which includes paid advertising and that those who sell
space in “official” publications are guilty of fraud and imposture.
Report them to the DDCCRF.
- France Telecom imitations: This is a slippery one. You receive
a purchase order which uses similar colours and logos to France Telecom
documents. You are asked to sign for ad space and send payment to a
foreign address. Know that the France Telecom directory is edited by
France Telecom SA in Bordeaux using the registered trade names
“l’Annuaire” and “PagesJaunes” (one word). Check any proposal that
seems suspicious with the FT (numbers on page 32).
- Trade and brand name catalogues: When you register a brand or
trade name with INPI or Ici Marques, illegitimate concerns often ask
payment for further registry. This is ineffectual, unnecessary and
abusive. When we registered a couple of trade marks we received
official looking demands from “Editions The Marks KFT” based in Hungary
and from “Globus Editions S.L.” based in Austria. No obligatory charge,
tax or fee should be paid outside France so, if the request for money
does come from anywhere else, you can ignore it.
- European City Guide: One of our advertisers is being hounded
by this Barcelona-based organisation which produces a directory of
limited interest and tries to hard-sell advertising at outrageous
prices. Our friend signed no order but is still harassed with demands
for payment and even outright legal threats based upon a document in
French bearing a forged signature. One to watch out for.
- Real publications, false reps: A few years ago a fellow with a
familiar sounding false name (“Peter Johnson”, but not the real Peter
Johnson of unblemished reputation that we know so well) got his hands
on a Reporter rate card and posed as one of our sales reps. He even
collected a few deposit cheques — “just leave the payee blank”. If you
are not dealing directly with Nancy Wilson or myself at the Reporter
office, then deal only with Patrick Middleton or Steve Crowe. Consult
us about anyone else who claims to represent the Reporter. Cheques for
advertising should never be left blank but made out to “Riviera
Reporter SARL”.
© Mike Meade
From Reporter 100 - Dec 2003
MORE SCAM SAVVY
In issue 100, I noted the importance of being “scam-savvy” when
you’re in business. Some local businesses have been conned into
advertising in publications which either pretend to be “official”
(which they’re not) or widely distributed (again, not). One of our
advertisers was even harassed for money by a Barcelona-based publisher
who had forged a signature on the order form. The scam merchants are still at it, often under cover of companies
in Spain, Austria or Switzerland who glean trade name registers for new
chumps. The fact that they all appear to target their victims in
English does suggest that this may be the work of a small group of
British expats. Aggressive demands for payment, especially by offshore
companies with whom you’ve never signed a contract will not result in
you having to pay unless you give in voluntarily. So don’t. Consult
www.stopecg.org to see how one of these scams operates. See also
www.thisismoney.com/20000319/si12898.html. E-mail any reports of
abusive tactics to me at the Reporter.
NO COMPETITION?:
There was a time when an employee could be bound by a work
contract forbidding him to enter into future competition once he is no
longer with his employer. This general principle has been abolished;
recent case law substantiates the new rules. The “clause de
non-concurrence” must now be combined with an increase in salary
(indemnité compensatrice), cover a predetermined time period not
exceeding two years, apply to a sector of activity in obvious direct
competition and is limited geographically. So, if you haven’t been
paying your staff a specified sum — mentioned on their pay slips and
subject to social charges — you can’t prevent them from working for a
competitor or from setting up their own business in competition with
yours. It’s up to you, in negotiation with your staff, to decide
whether or not this protection is worth the extra you must pay for it.
TEE TIME:
Social charges with all their complications and cost have long
been a headache for employers in France. Getting a part-timer in to
clean the office or a secretary to help out during a busy period once
meant jumping through endless and costly bureaucratic hoops.
Relief is on the way with the “titre emploi entreprise”.
Modelled after the “cheque emploi service” for domestic help, the TEE
is an easy way of declaring and paying social charges on occasional
staff. The “titre” combines the formalities of a work contract, a
salary slip and a social charges declaration all in one document.
There are limitations (surprised?). The TEE is limited to
companies in specific sectors of activity with 3 employees or less and
can only be used for working time not exceeding 100 days a year. See
more details and register for TEE at www.urssaf.fr.
© Mike Meade
From Reporter 103 - Apr/May 2003
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