Small business profits ‘hit by rogue sales tactics’

A large number of small firms believe their profits are suffering as a result of unfair selling practices employed by their competitors, according to a new study.

Research carried out by the Department for Business, Enterprise and Regulatory Reform reveals that 53% of business leaders think their bottom line has been dented by rogue sales techniques used by rival firms.

Of those affected, one in ten estimate that such unethical tactics are costing their business more than one fifth of its revenue.

The Government has now outlined plans to implement legislation to address the issue and appease the growing concerns of the small business community.

Subject to Parliamentary approval, the Consumer Protection Regulations (CPRs) will see 31 types of unfair selling methods, such as prize draw scams and aggressive doorstep selling, outlawed from 26 May 2008.

John Wright, Chairman of the Federation of Small Businesses, has welcomed the new law. ‘Legitimate businesses should no longer have to face unfair competition from firms who use underhand tactics to get ahead,’ he said.

‘These regulations will create a level playing field for all, allowing businesses to thrive based on merit and not on who is best at duping or pressuring consumers.’