MISLEADING or deceitful sales practices are hitting a growing number of smaller companies, a report has claimed.

Telecoms operator BT said more than three out of four small or medium-sized companies had been on the receiving end of mis-selling of business services.

A survey of 1,000 companies showed that most believed the problem was getting worse.

Bill Murphy, managing director of BT Business, said: "In recent months, mis-selling has been widely discussed as a consumer issue, but for the first time, there is clear evidence that it is a growing issue for Britain's businesses.

"Salespeople can employ dubious tactics to get people to switch suppliers, from convincing managers that they have agreed a new contract with a colleague to not being transparent that they are selling something in the first place."

Companies misled into buying the wrong kind of business services said it had cost them nearly £400 and taken up more than 11 hours of their time.

Stephen Alambritis, of the Federation of Small Businesses, said: "An increasing number of small businesses are falling victim to mis-selling.

"Not only do they lack the specialist knowledge available in large companies, but they also do not have access to the protection offered to individual consumers under the law.

"Clear guidelines outlining the rights of business customers are essential in the battle against this growing problem."