Bogus Charity Collector's Operation Stopped

21 December 2004

The Advertising Standards Authority (ASA) has applauded the success of the Office of Fair Trading (OFT) in stopping a bogus charity collector connected with Kosta Ltd. The ASA upheld complaints from the public against Kosta Ltd in 2003. The company has persistently breached the advertising codes and provoked a deluge of complaints to the ASA and the OFT over their deceptive use of flyers which misleadingly give the impression they are a charity.

The flyers, which were posted through people’s letterboxes, asked for donations of unwanted clothes and household items stating they would be collected and used for charitable purposes in Lithuania. However, Kosta Ltd is not a registered charity and despite the claims in their literature that donations would ‘help those who really need your support’ they were in fact selling items on for a profit.

Nicholas Rees was prosecuted by Birmingham City Council earlier this year for unlicensed door-to-door collecting in connection with the flyers from Kosta Ltd. He has now given undertakings to the OFT that he will not be involved again in the publication or dissemination of these advertisements.

Similar organisations to Kosta have been operating around the country in exactly the same manner making this a nationwide problem. Many of these organisations are difficult to track down as they have no official contact details and give false information when registering as a company.

The OFT, who act as a legal backstop for the ASA, have been working hard to help stamp out this kind of practice. They can now seek an injunction against Mr Rees in the High Court should he breach the undertakings.

Despite this success story the ASA continues to receive complaints about other bogus charity operators who distribute flyers advertising door-to-door collections. However there are simple measures that can be taken to avoid lining their pockets. Members of the public who are sceptical about the legitimacy of the organisation behind the flyers can call the Charity Commission Helpline on 0870 333 0123 to verify if the collection is for a registered charity. Alternatively they can contact their local authority to check that the collector has been licensed.

The ASA and the OFT, with the help of other organisations such as the police and the Charity Commission are continuing to work together to put a stop to bogus charity operations.

Charity Commission www.charitycommission.gov.uk

The ASA upheld complaints about Kosta's leaflet in 2003.