BUSINESSES in East Lancashire are warned to be alert after a ruse involving a Spanish travel guide company was exposed.

A number of small businesses in the Manchester and Cheshire areas were contacted for information by European City Guide, based in Barcelona, last year.

Thinking that important new business might be generated by the guide, the companies replied, not realising that by doing so they had entered into a hidden contract.

They were then invoiced by European City Guide, who demanded hundreds of pounds for services which the small business had not knowingly requested.

Labour Euro MP Gary Titley said: "The problem wasn't simply confined to the North West of England. I soon found that other businesses around the country and even in Ireland had been caught up in the scam."

European City Guide have since been hauled before the Spanish courts and fined thousands of pounds for tricking businesses into signing the cunningly disguised contract.

Mr Titley said: "Successful though this case has been, it sends out a clear warning to small businesses to be on their guard against other organisations like European City Guide that deliberately try to dupe innocent victims for their own ill-gotten gains."