OFT warns don't get scrooged at Christmas!

As Christmas approaches, the OFT is urging the public to be on the lookout when giving to charity and not to get caught out by scrooges (otherwise known as bogus charity bag collectors) who prey on people's good will to fill their own pockets.

Attracted by the rising prices paid for second hand clothes, bogus charity bag collectors, many with links to the Baltic States, have increased in number and are even prepared to steal donations left out for genuine charities.

The Association of Charity Shops estimates that over £2 million worth of potential donations are lost each year to bogus charity bag collectors. Many genuine charities rely on doorstep collections for a large part of their shop sales and for many households, donating unwanted items is the most generous way they can support their chosen charities.

Clothes Aid is an organisation which collects doorstep donations for children's hospitals across the UK, including Great Ormond Street Hospital Children's Charity (GOSHCC) and Alder Hey, the largest children's hospital in Europe. They estimate that GOSHCC alone has lost £220,000 per annum to bogus charity bag collectors. GOSHCC bags attract upwards of £500 for one tonne of donations on the black market and it is believed that up to 30 truck loads leave the UK every month destined for Lithuania alone. As a result, Clothes Aid has employed a team of 'motorcycle guardian angels' to patrol and protect collection areas and report thefts to the police.

The OFT has worked closely with the Charity Commission, Local Authority Trading Standards Services and the Advertising Standards Authority to crack down on the bogus charity collectors.

However, many of the recent collection leaflets give the misleading impression that the collections are on behalf of charity, but hidden in the small print they often admit that, in fact, donations are being collected for commercial purposes. The leaflets often include fake address or registration details which make them especially difficult to trace.

If consumers have any doubts about a leaflet asking for donations, or collectors they should:

contact the Charity Commission helpline on 0870 333 0123 to check whether the collection is for, or on behalf of, a registered charity,

give directly to a local charity shop or donate to a charity shop collection sack, which should make clear reference to the charity registration number and many will also carry the Association of Charity Shops Code of Charity Retailing logo, or

contact the local police to report concerns or evidence of theft of donations to genuine charities.

Christine Wade, OFT Assistant Chief Executive, Consumer Advice and Trading Standards, said:

'It is deplorable that some people actively cheat genuine charities out of significant sources of revenue and deprive those most in need of donations. We want people to be confident that they can give to charities but they should be careful to avoid unscrupulous individuals and companies looking to exploit their generosity and goodwill.'

David Moir, Head of Policy and Public Affairs at the Association of Charity Shops, said: 'House to house collections remain an effective way to donate and we urge members of the public to continue their generous giving, but encourage them to exercise caution and vigilance. Legitimate charities take great care to get their message across. If a leaflet doesn't look or sound right it probably isn't.'

Michael Lomotey, Head of Collection Protection at Clothes Aid, said: 'Clothes Aid is working with the police and Trading Standards to stamp out this problem and thanks to the vigilance of members of the public we have already successfully prosecuted people for theft of clothing donations. Nevertheless we urge the public to continue to give in this way but if they notice anything suspicious to dial 999 immediately.'