ACCC To Take On Domain Name Corp Over ‘Deceptive Conduct’
The ACCC has instituted proceedings against Domain Name Corp Pty Ltd and Domain Name Agency Pty Ltd, alleging that they engaged in misleading or deceptive conduct and made false or misleading representations to Australian businesses about the domain services offered.
The regulator says that from November 2015 to at least April this year, both “Domain Companies” sent out approximately 300,000 unsolicited notices to businesses, which the ACCC alleges looked like a renewal invoice for the business’s existing domain name.
Instead, these notices were for the registration of a new domain name, at a cost ranging from $249 to $275.
“The ACCC alleges that because these notices looked like they were renewal invoices, many businesses paid them thinking they were simply renewing the domain name for their business. The ACCC is alleging that the businesses were instead unwittingly signing up for a new domain name ending in either a .net.au or .com suffix that the business might not have needed or wanted,” ACCC Deputy Chair Dr Michael Schaper said.
“The ACCC believes that Australian businesses and organisations paid approximately $2.3 million to the Domain Companies as a result of receiving the notices,” Dr Schaper said.
What’s more, they allege that the sole director of both the Domain companies was involved in the conduct.
The ACCC is seeking declarations, injunctions, pecuniary penalties, corrective advertising, disqualifying orders against the director and costs.