2012 Olympics 'stormtroopers are harming small businesses'

London's Olympics chiefs have been accused of behaving like "stormtroopers" towards small businesses.

Baroness Valentine, chief executive of London First, said companies were being targeted by aggressive "brand police" in an overzealous crackdown by the 2012 organising committee, Locog, on unauthorised marketing.

Lady Valentine called on Locog to show more leniency to firms in the capital seeking to use Olympic promotions to help their businesses.

Locog is accused of stifling legitimate enterprise as it protects the marketing rights — consisting of the Olympic rings and 2012 logo — of its tier-one sponsors such as BA, adidas, Lloyds Banking Group and BMW, who pay up to £80 million to become commercial partners. Olympic lawyers have the backing of the tough rules governing marketing under the 2005 London Olympic Act.

Speaking at a Lords Olympics debate, Lady Valentine said: "Even mentioning London and 2012 in the same sentence can result in a shot across the bows from the brand police of Lord Coe. We should be building excitement. My worry is that the reputation earned by Locog's stormtroopers threatens to undermine the potential for London."

She called on Locog to grant City Hall tier-one sponsor status free of charge. This would enable the Mayor to use the Olympic brand on poster sites and public transport. A breakthrough is expected in negotiations between Locog and City Hall resulting in wider publicity at airports and on buses and trains in the build-up to the Games.

She said: "Such is the absence of branding in and around the city, Londoners and visitors might not be aware of the Games taking place."

Labour peer Lord Faulkner said: "Striking the right balance in allowing businesses to benefit from the Games and protecting Locog's sponsors' rights is a fine judgment. We are clear that protection must exist if we are to guarantee the private-sector funding that is so crucial to fund the Games."