READERS may be interested to know that The Enterprise Act 2002 improves consumer protection by giving enforcers such as City of York Council Trading Standards and the Office of Fair Trading (OFT) additional powers.

They will be able to obtain legal undertakings or court orders against traders beaching a range of consumer legislation including activities such as misleading advertising, misleading price indications, unlawful lotteries, sale of goods and services, underage sales, estate agency and misleading health claims.

Trade descriptions, mock auctions, timeshare, unfair terms in consumer contracts, doorstep selling, distance selling, package travel and consumer credit all come within the scope of the legislation.

If the undertakings are breached the "enforcer" can seek a court injunction. Failure to obey a court injunction could result in proceedings for contempt of court.

The latest action in a string of undertakings obtained by the OFT to combat schemes that undermine the confidence in Internet and e-commerce is one against the promoter of a website that operated a matrix scheme - offering expensive hi-tech gadgets as "free gifts" in return for a low-value product. Sounds too good to be true? It was.

Unfortunately, the nature of the scheme, which attracted thousands of members, meant that the number of members waiting for their "free gifts" would always far exceed the number of "free gifts" actually awarded, and the further down the waiting list you joined the less your chance of ever receiving your "free gift".

For example, if you signed up in 100th place on a waiting list that requires 50 new recruits per gift you would not reach the top of the list and receive your gift until five thousand people had joined - that is 50 new recruits for each of the first 100 members on the list.

The OFT considered the scheme to be unlawful under The Lotteries and Amusements Act as the participants had to pay for a chance to receive a prize or a reward, were not required to exercise any degree of care and skill, and the distributions of the prizes/rewards was made by chance. Therefore the OFT took action to stop the promotion.

Readers can help the OFT and Trading Standards target these mass-marketed scams by telephoning Consumer Direct on 08454 040506 to report their concerns.

Updated: 10:29 Thursday, September 01, 2005