Irish businesses are being warned to watch out for yet another business directory scheme for fear they could unintentionally sign away more than €800.

A letter purporting to be from a Dublin-based group, Online Business Directory, is being sent to companies asking them to confirm their details and sign the document in order to be included in a countrywide internet directory. The layout of the form makes it look like a basic listing is free and that payment is only required for a bold listing. However the small print points out that the recipient is in fact accepting a charge of €879 a year for a minimum of two years.

The form contains no phone number and attempts by The Irish Times to contact the company by fax and e-mail were unsuccessful. There is no record of the company at the given address at either directory enquiries or on the Companies Office online service, where all Irish companies are required to be listed. Another listing for the same name gives a "Fionna Schuster" in Germany as the company's owner, though contact couldn't be made with her last night.

Addressing the issue yesterday, Dermott Jewell, the consumer affairs director, said that while such a scheme is not illegal, it is very misleading to consumers. "The difficulty of all these schemes is that they are put forward as a legitimate business deal," he said. "They prey on the fact that people are very busy and don't always read the small print as they should."

The discovery of this scheme follows a series of similar incidents, which have led to investigations by authorities across Europe and the creation of a website urging vigilance. The most well-publicised incident was a Barcelona-based publication called the European City Guide, which followed the same pattern of asking recipients to confirm their details and sign on the dotted line in return for handing over €717.