WARNINGS have been issued to firms about signing up for online business directories after a Blackburn-based company was wound up in the High Court.

They come from the Insolvency Service and East Lancashire Chamber of Commerce chief executive Mike Damms.

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Go-rise Ltd, of Market Street Lane, Blackburn, made false and misleading statements to induce businesses to pay for a listing on its online business directory.

It was wound up on January 27 and the official receiver appointed as liquidator following an investigation by the Insolvency Service.

Go-rise cold-called prospective customers and offered to promote their businesses in an online directory and use keywords to improve the customer’s Google ranking.

The investigation found that the company’s telesales staff made false claims including that they were calling from or on behalf of Google and that contracts between the company and customers were due for renewal when none had been entered into.

Colin Cronin, investigation supervisor with the Insolvency Service, said: “The online business directory service sold by Go-Rise Ltd provided no commercial benefit whatsoever to customers because the directory could not be accessed by the public due to it being password protected.

“Neither did the company make any arrangements with Google Adwords to provide keywords in order to promote its customers.

“The company obtained payments when it had no apparent intention of providing the services promised.

“We have now investigated a number of such companies and what they have in common is offering a directory listing which is of no use to the customer because it is not promoted and is often password protected, thereby completely defeating its purpose.

“I would therefore urge any business which is contacted by cold-call and asked to purchase an online directory listing to make full enquiries into the service being offered before entering into any agreement.”

Mr Damms said: “I think The Insolvency Service were absolutely right to wind this company up.

“I would support and underline its warning to East Lancashire firms to thoroughly investigate any company offering online business directory listings before signing any agreement with them.”