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Court bars Canadian domain slammer
06/01/2004
On December 23, The Federal Trade Commission (FTC) has 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.
More details at: http://www.theregister.co.uk/content/6/34716.html
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