NORTH-EAST sunseekers are being ripped off by a Spanish beach gang charging £7 for bottles of water you can buy at supermarkets for 29p.

The alarm was raised by holidaymaker David Anderson who spotted a couple paying 20 euros - £14 - for a small water and a lemonade in the beach resort of Magaluf, Majorca.

The town has become a popular destination for North-East holidaymakers. More than 10,000 people from the region visited last year.

Mr Anderson, who lives in Weardale, County Durham, said that when the trickster tried to rip off another teenage couple they called police.

He said: "I was able to buy the same bottles of water for only 40 cents - about 29p - in a supermarket only a stone's throw away from the beach.

"In fact, a giant five litre bottle can be bought for about £1."

But the gang - some of them teenage girls - open the cans and bottles and hand them over to the unsuspecting holidaymakers before telling them the price.

One young couple from Worcester were charged eight euros for a can of coke.

The couple dashed after the seller clutching the can demanding their money back. But he refused and became aggresive.

The victims said: "These people should not be allowed on the beach.

"They opened my can and gave it to me before telling me how much it cost.

"What an absolute rip-off, I was furious.

"When I asked for my money back he squared up to me, but other holidaymakers intervened."

Another young couple were charged 20 euros for their drinks.

Later, the girl told The Northern Echo: "I was taken by surprise. It was boiling hot and we wanted a drink. We'll not do that again."

Half a dozen gang members have been crossing the beach carrying a plastic bucket containing the bottles of water and cans.

There are fears that violence may flare up as a result of their actions.

Len Swift, divisional trading standards officer for North Yorkshire County Council, said: "I would advise people in this situation to do what they would in this country and shop around. Don't always take the first offer.

"People should also acquaint themselves with the exchange rates before they go abroad so they don't become confused. With the Euro, it is fairly easy to remember that one Euro equals around 70p."