Austrian Court Rules Against Company
Staff -- Tradeshow Week, 3/19/2007
Austria-based Construct Data has been forced by a court ruling to cease mailing misleading contracts to potential clients in Europe. What's more, the Austrian court ruled that the company must stop demanding payment of parties that dispute those contracts.
Austria-based CD and its Fair Guide are the object of numerous complaints and lawsuits by U.S. and European show organizers. They allege that CD contacts their exhibitors, giving the impression that Fair Guide is sanctioned by show management, and asks them to be in an exhibitor directory. When exhibitors fill out guide listing or update forms, which resemble official directory forms, they also unknowingly agree to long-term commitments and are subsequently billed and threatened for payment.
CD President Wolfgang Valvoda said he would comply with the ruling in order to avoid extensive legal proceedings and unnecessary costs. He said the accord refers only to specific advertising material and certain clientele. Fair Guide will continue to exist in its familiar form, and CD is planning to re-launch it with new features.
The U.K's Assn. of Event Organisers and UFI — the Global Assn. of the Exhibition Industry have warned members about CD's practices. UFI Managing Director Vincent Gerard said he was pleased that, after so many years of complaints to Austrian authorities, there was finally a ruling against CD and its illegal practices.
"We have recommended this position from the beginning, and it has now been endorsed," Gerard said. "If we present a united front, we may see this type of business disappear."
Intl. Assn. of Exhibitions and Events President Steven Hacker said he had not yet heard of the settlement.
"Construct Data has proven to be a very elusive group," Hacker said, "and it would not surprise me to find them carving out some new space in which to operate. Their response is consistent with everything we know about them."
