Trader who mis-sold advertising space ordered to pay almost £3,000 in compensation and court costs

A trader who mis-sold advertising space to local businesses has been ordered to pay almost £3,000 in compensation and court costs.

Teesside Magistrates Court’ heard that Stephen Lloyd of Stanhope Road, Billingham, sold advertising in The Phone Box Directory to a number of local businesses but did not go on to publish the directory.

Stockton Council’s trading standards officers investigated Lloyd after receiving complaints from businesses in the Billingham and Wolviston area.

He began to approach businesses in October 2013 to advertise in the Phone Box Directory, showing them an existing copy which had been produced in the shape and design of a telephone box.

Companies were told the directory would be distributed in January 2014 to up to 150,000 homes throughout the area.

However, more than a year later the directory had not been published with businesses paying between £50 and £250 for advertising they did not receive.

On one occasion Lloyd encouraged a business to take advertising space by falsely claiming two local retailers had already taken advertising. Both retailers confirmed to trading standards this was not the case.

Despite requests from the businesses and council officers, Lloyd did not refund the fees.

In mitigation he said that he wished to apologise to the complainants and that he had run the directory as a successful business a number of years ago.

He said he wished that he had contacted customers, explained the situation to them and issued refunds to them.

The 51-year-old pleaded guilty to five offences of Engaging in Misleading Advertising contrary to regulations.

He was given a two year conditional discharge for each offence, to run concurrently, and ordered to pay the complainants £1,480 in compensation and Stockton Council £1,427 in costs.

Peter Kelly, Stockton Council’s director of public health, said: “This sentence sends a message that traders will not be permitted to target small businesses and take their hard earned cash in this way.

“Businesses need to make the most of their advertising budgets and to just take their money and provide nothing in return is totally unacceptable.”