Eurim looks into tech vendor rip-offs

A user group is to present Chancellor Gordon Brown with evidence of sharp practices among technology vendors.

The Fair Dealing group of parliamentary lobby organisation Eurim is preparing a dossier of evidence which claims that dodgy dealing by IT companies is getting worse as vendors fight for business in a declining market.

Eurim claims that unfair contract terms costs UK business £500m a year. "Most of the suppliers are in severe trouble and they think the best way to get revenue is to stiff people," said Geoff Petherick, chairman of the Fair Dealing group.

The Chancellor has announced that US-style anti-cartel laws will be introduced to improve competition.

"In the US, it has long been recognised that cartels are simply a sophisticated form of theft, and that the threat of prison sentences for such clear-cut abuses is the most powerful and effective deterrent," he said. A Government White Paper next month will set out plans to shake up competition law.

Over the next month, the Fair Dealing group will be taking evidence from companies that feel they have been mistreated by their technology suppliers. Eurim will undertake to ensure their anonymity during the survey.

If your organisation has any complaints about sharp practices, contact gsoftltd@cs.com.