Police rip off

perhaps it was considered that your use of the logo was an attempt to make your site look like it was approved by the police, mind you though you should have received a "cease and desist" rather than a "give us a couple of grand"

Not at all. That was never mentioned purely the fact that as a non member I was to stop displaying the logo.
It was said that if I joined and paid 2k I could then display the logo.

You raise an interesting point though.

Are the police allowing companies to appear police approved if they pay the police money.

Are there any checks performed and could the consumer be mislead.

There is a new trustmark scheme approved by local councils which allows your business to be on approved lists.
They kept asking me to join (and pay the yearly £360 membership fee)

The question is how many rogue companies join these organisations and what vetting occurs?

When I was younger I was having an extension built. The builder claimed to be in the federation of master builders with a logo on his yellow pages advert.
The workmanship became poor so I asked to see his federation membership. it turns out he wasn't a member.
I then found out in an effort to stop me from sueing him he had applied to join. There was going to be a meeting the following Monday where his membership was to be endorsed. I spoke to the local offices of the Federation of Master builders and explained how the builder had been fraudulently claiming membership and was producing dangerous low quality work. One so called retaining wall was built with a poor mix that hadn't set after two days and could be scooped out using a finger.
The Federation member actually said that it was yellow pages fault because 'they stick those logos everywhere'!!! He also seemed totally unmoved by my pointing out how dangerous the builders work was and how my premises had been raided by social security who had rounded up all his staff who were all signed on.

Wherever an organisation takes money for membership ethics can simply evaporate and customers can be dangerously mislead.
Even if the work is up to standard it can lead to businesses with endorsements using these as an excuse to seriously overcharge.

I am not suggesting this in the Secure by design scheme who's members if they are like me would be reputable.
 
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opps, I really think this has been taken as far as it is going to go. The OP has a certain mindset, and has a clear idea in his head as to what the problem is, the trouble is, is that either it isn't being explained properly, or nobody understands the issue.

The issue needs some type of mediation, and a solution on a forum is clearly not going to work. The OP has expressed their concern, and referenced an ealier incident that they encountered, but I think it's just going round in circles?

I think OP, that is a fair assesment? (NOTE I said MEDIATION, not medication...as I genuinely believe that you have a case, but nobody seems sure what it is?), have trading standards got back to you? Either on your side or pulling you up?

Go back to trading standards, lay out everything, get a solicitor, make a claim in the small claims court if needs be, there is obviously something amiss, write a notice of intent to the people that are putting you down.
 
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