Don't pay money for nothing

Pubs rely on attracting customers, which is why time and again you will see reports of some form of advertising scam that has trapped an unsuspecting licensee.

But this is not the only type of trick targeted on the public-house trade. Recently, there has been a spate of bogus "orders" alleged to have been placed by pubstaff, and the consequent threat of legal action if the licensee does not pay up. Regrettably, some hosts decide that it is safer to settle than to risk being pursued, though one or two are resisting these con men and refusing to pay for what they know they did not order.

From my point of view, scams against licensees never really go away, or alter that much. Most of these stem from a telephone call made to the licensee or a member of staff — a year ago one Kent licensee claimed that she had some sort of con man on the line nearly every day.

So it is hardly surprising that I have written about what are termed "verbal contracts" on this page many times. Do not be fooled! You are told that you will do brilliantly out of the deal that is being offered.

The fact is that the only person likely to benefit from this activity is the scammer himself.

Often the problem stems from the situation. A member of staff who has nothing to do with the financial side of the business takes the initial call and then reports what has occurred to the licensee. In every example, I have suggested that the recipients should make no firm commitments at the time and wait until they see the details in print, where they can assess the realities, as opposed to relying on the salesman's patter.

It is just not true that the deal on offer on the phone is "the last one available", or that he must have an answer on the spot. That is just pressure selling. No one in that business or any other is going to turn down a deal because it breaches an artificial deadline, which they themselves have created.

I am also particularly concerned that licensees often rely on the salesman for all relevant information on the deal, without doing some research elsewhere at the same time. If he tells you that X Company has just raised its commercial tariff by 100%, find out whether this is true. If it isn't, you are a lot wiser and he has lost a mug.

But it is in the detail that these contracts unwind, and it is the detail you do not get on the phone. That, as lawyers will tell you, is buried somewhere in the small print, which will also say that no "verbal warranty", express or implied, has anything to do with the deal. In other words, if it isn't on the paper, then it doesn't exist, except in your optimistic mind.

If, however, the contract has been based on clear misrepresentation (such as a claim that the brewery/operating company has insisted that you use this firm), then you are entitled to treat it as void. Telling lies — which is what this is — constitutes an unfair negotiation now clearly covered by new laws. If it goes to the root of the contract, then you are entitled to walk away when you find out it isn't true.

The same is true of alleged contracts that never existed at all. The scammers rely on lack of knowledge by the licensee of their legal rights, plus some pretty harsh threats and some official-looking letters threatening legal action. Some even look as though they are from a court.

All this is intended to extract money from you for nothing. Don't fall for it!