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OFT stops misleading domain name registration claims

PN 155/03     1 December 2003

A Swansea-based company offering businesses an internet domain name registration service has agreed not to make misleading statements to businesses following action by the OFT.

The OFT received complaints that Internet Registrations Bureau Limited (IRBL) trading as Euro Web Designs, had contacted businesses informing them that a third party was interested in registering a domain name similar to their business name. The businesses were offered the opportunity to register the domain name with IRBL but were told that they only had a short period of time to accept the offer or the domain name would be registered to the third party. When challenged by the OFT, IRBL was unable to provide evidence that any such third parties existed.

Swansea Trading Standards Service worked alongside the OFT in taking action.

The OFT has secured written undertakings from the company and directors Paul Dilling and Susan Ford that they will not claim to have been contacted by third parties interested in registering domain names when no such interest has been expressed to them.

John Vickers, OFT Chairman, said:

'We will continue to crack down on advertisers who make misleading claims about their services. Businesses should be wary of domain name registration companies cold calling and putting pressure on them to purchase names in haste.'
 
NOTES

1. The Control of Misleading Advertisements Regulations (CMARs) 1988 came into force on 20 June 1988 implementing an EC Directive on misleading advertising.  The role of the OFT under the Regulations is to support and reinforce existing controls, not to replace them. The Regulations give the OFT the power to step in if the public interest requires that advertisements complained of should be stopped by means of a court injunction. 

2. The OFT can only act when a complaint has been received. To come within its scope an advertisement must be misleading (ie it must deceive or be likely to deceive the recipient and, by reason of its deceptive nature, affect their economic behaviour, or harm the interests of a competitor) and be published in connection with a trade, business, craft or profession, in order to promote the supply or transfer of goods or services, immovable property, rights or obligations. The OFT can take action against anyone appearing to be concerned or likely to be concerned with the publication of a misleading advertisement.

3. 'Advertisement' means any form of representation that is made in connection with a trade, business, craft or profession in order to promote the supply or transfer of goods or services, immovable property, rights or obligations. An advertisement can be a representation made orally or in writing.

4.  Businesses who have doubts about the reliability of a domain name offer should contact their usual Internet Service Provider or domain name registration agent, who can advise on the most sensible course of action

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