RE: [registrars] Network Solutions Settles FTC Charges
See also: http://www.ftc.gov/os/2003/09/networksolutionsstip.pdf For the final court order. > -----Original Message----- > From: Bruce Tonkin > Sent: Tuesday, 30 September 2003 11:01 AM > To: Registrars Constituency > Subject: [registrars] Network Solutions Settles FTC Charges > > > From: http://www.ftc.gov/opa/2003/09/networksolutions.htm > > > Network Solutions Settles FTC Charges > > False Solicitations Allegedly Duped Consumers to Transfer > Domain Name Registrations > > Network Solutions, Inc. has settled Federal Trade Commission > charges that its deceptive marketing practices unlawfully > tricked consumers into transferring their Internet domain > name registrations to the company. The terms of the > settlement permanently bar Network Solutions from > misrepresenting that a consumer's domain name is about to > expire or that the transfer of a domain name is actually a > renewal. The order also requires the defendant to pay > consumer redress pursuant to the terms of a previously > settled class action lawsuit. > > Network Solutions is the largest of more than 100 companies > that compete to provide domain name registration services to > consumers. These companies, called "registrars," help > consumers establish the addresses for their Internet Web > sites. Consumers choose a second-level domain name for > generic top-level domain names such as .com, .net., and .org > (e.g. www.networksolutions.com) and Network Solutions > registers that domain name with the appropriate "registry." > > The FTC's complaint alleges that, as part of its marketing > campaign, Network Solutions mailed solicitation notices to > consumers that appeared to be expiration notices from the > consumers' current registrars. The notices allegedly stated > that consumers' domain names were about to expire, and that > Network Solutions was offering to "renew" their domain names > for a fee. > > The FTC alleges that these notices were deceptive for two > reasons. First, the notices claimed that the consumers' > domain names would soon expire, but failed to disclose the > actual expiration dates of the consumers' domain names - > which were, in some cases, months or years in the future. > Second, the notices offered to "renew" the consumers' domain > names without disclosing either the identity of the > consumers' then-current registrars or that accepting the > offer would cause the domain name to be transferred to > Network Solutions. The FTC charges that the notices tricked > some consumers into transferring their domain name > registrations to Network Solutions - often at a significantly > higher price. > > The stipulated order permanently prohibits the defendant from > misrepresenting that: a consumer's domain name registration > is about to expire; the expiration date of a registration is > near or on the date by which a consumer must respond to the > Network Solutions solicitation; and that the transfer of a > domain name registration is only a renewal. The settlement > also requires the defendant to state clearly and > conspicuously in any written or oral communication with > consumers the date on which the consumer's registration will > expire. The order also requires Network Solutions to pay > consumer redress in accordance with a class action lawsuit it > recently settled. Finally, the settlement contains standard > recordkeeping provisions to assist the FTC in monitoring the > defendants' compliance. At the time that the solicitations > that are the subject of the FTC's charges were mailed, the > company was doing business under the name "VeriSign." > > The Commission vote authorizing staff to file the stipulated > final order was 4-0-1, with Commissioner Pamela Jones Harbour > not participating. The order was filed in the U.S. District > Court for the District of Columbia on September 11, 2003, and > was entered by Judge Ricardo M. Urbino on September 12. > > NOTE: This stipulated judgment and order is for settlement > purposes only and does not constitute an admission by the > defendant of a law violation. Stipulated judgments and orders > have the force of law when signed by the judge. > > Copies of the stipulated judgment and order are available > from the FTC's Web site at http://www.ftc.gov and also from > the FTC's Consumer Response Center, Room 130, 600 > Pennsylvania Avenue, N.W., Washington, DC 20580. The FTC > works for the consumer to prevent fraudulent, deceptive, and > unfair business practices in the marketplace and to provide > information to help consumers spot, stop, and avoid them. To > file a complaint, or to get free information on any of 150 > consumer topics, call toll-free, 1-877-FTC-HELP > (1-877-382-4357), or use the complaint form at > http://www.ftc.gov. The FTC enters Internet, > telemarketing, > identity theft, and other fraud-related complaints into > Consumer Sentinel, a secure, online database available to > hundreds of civil and criminal law enforcement agencies in > the U.S. and abroad. > <<winmail.dat>> |