Labour Party treasurer and Maghull Town Councillor Maurice Byrne has contacted the police after the local Labour Party received a call from a Manchester-based company.
They demanded £195 to pay for the sponsorship of a book which they said had been agreed back in September. But no one at the party had made the agreement.
Investigating further, Maurice discovered a catalogue of complaints from people about the company.
Maurice said: "The call came through from the company, who said that 'the books were printed and ready for distribution to a nominated school'.
"When they were asked for further information, they said 'Sefton Central Labour' had made an agreement with them on September 13 to sponsor a book about sexually transmitted diseases. The caller said the book was ready to be sent to the nominated school and we now owed them £195.
"But no one at Sefton Central Labour had made any such agreement.
"So I checked online and I saw hundreds of complaints from people who had had similar experiences with this company."
Maurice has reported the incident to the police.
He said: "Some of the online complaints I found about this company, included people who had paid over the money. They in turn received a copy of the booklet which they reported featured lurid images which they said were not suitable to be sent to schools.
"Complaints dated back more than three years and I was shocked that they were still operating. With the number of detailed complaints online, I would have thought that action would have been taken to stop this company.
"I've mentioned it to a number of small business people in Sefton who have told me they have received similar calls.
"Apparently, the caller can get quite insistent and demand payment.
"Times are tough enough for local businesses, I don't want any of them handing over any money for something they haven't agreed to. If a business has a number of people working there, they make the payment thinking someone else had agreed it.
"If you do get a call, please take down some details and pass them all on to the police who are now aware of the scam and are investigating or call the Sefton Central Labour Action Team on 0151 531 1193."