Feeds

Court bars Canadian domain slammer

50,000 misled consumers can get their money back

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

On December 23, The Federal Trade Commission (FTC) requested that a federal district court instruct an Internet domain name reseller from making misrepresentations in the marketing of its domain name registration services. Domain Registry of America (DROA) told consumers that their domain registrations were expiring, leading many consumers to switch their domain name registrar.

DROA mailed millions of such renewal notices captioned 'IMPORTANT NOTICE' to urge consumers to act quickly to avoid 'Register Lock' or 'Loss of your online identity.' The company also warned, according to the FTC, that if consumers 'lose their domain name' it may be 'impossible for you to get it back.'

The company also allegedly did not disclose that it would charge a processing fee to consumers if their transfer request was not completed and failed to provide consumers refunds in a timely manner.

Domain Registry of America, based in Ontario, Canada, is prohibited from engaging in similar conduct in the future, and is subject to stringent monitoring by the FTC. The company also has to provide a full refund, including any administrative or cancellation fees, to approximately 50,000 consumers who cancelled a transfer request.

DROA is a reseller of domain name registration services for a company called eNom, Inc. (eNom), an accredited registrar of internet domain names, but its doubtful practices were known for a while. In 2002 domain name registrar Register.com (no relation) won a preliminary injunction against its Canadian competitor for alleged 'domain name slamming'. Last year, Dutch hosting provider Deinternetman pondered legal action against Domain Registry of Europe for sending their customers letters urging them to renew their domain contracts.

Earlier, the UK Advertising Watchdog Authority (ASA) slammed Domain Registry of Europe over similar mail shots. DRoE, however, maintained that the notices were "not a bill, rather an easy means of payment should you decide to register or renew your domain(s) with us".

In related news, the FTC yesterday fined Fax.com almost $5.4 million for sending unsolicited advertisements via fax machines, the biggest penalty ever imposed for such a violation. The FTC says that on 489 separate occasions the California-based company, which faxes messages for clients for a fee, violated the law and regulations which forbid companies from sending junk faxes. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.