Domain Names Australia fires back at regulator

By Patrick Gray
01 September 2003 01:00 PM
Tags: rafferty, name, patrick, gray, domain, disspain, regulator, auda
A legal dispute between Internet company Domain Names Australia (DNA) and domain name regulator auDA has turned nasty, with the company publicly questioning auDA's legal authority to regulate the industry.

auDA took Federal Court action against DNA earlier this month alleging the company had breached the Trade Practices Act by engaging in misleading and deceptive conduct. The conduct at the centre of the dispute was a mail-out of domain registration documents by DNA to 400,000 businesses and individuals. auDA is alleging the registration documents are designed to look like an invoice.

However, Shaun Temby, a Phillips Fox lawyer acting for DNA and its director, Chesly Rafferty, told ZDNet Australia   he believed auDA did not have the legislative standing to undertake such action. "They just hold a license from an overseas company," Temby said. auDA is licensed by ICANN, the Internet Corporation for Assigned Names and Numbers, to regulate the .au domain name industry.

Temby's remarks follow the release of a statement by Phillips Fox responding to public statements by auDA over the case, which described auDA as a "self-styled regulator". Temby added "My client does not believe that auDA has the necessary standing to bring this action, nor that it has done anything wrong".

However, the chief executive of auDA, Chris Disspain, defended auDA's authority. "There is a letter of endorsement from the government which endorses auDA as a regulator," he said in a phone interview.

Disspain says the Telecommunications Act was amended to give power to the government to regulate domain names, and a letter signed by Senator Richard Alston, the Minister for Communications, Information Technology and the Arts, shows that responsibility has been delegated to auDA.

"It gives me great pleasure to communicate to you the endorsement of the Commonwealth of Australia (the Commonwealth) of auDA as the appropriate entity hold the delegation of authority by the Internet Corporation for Assigned Names and Numbers (ICANN) for administrative authority of the .au country code top level domain (ccTLD)," the letter reads.

However, Disspain claimed he was keen to avoid a slanging match and declined to comment in detail on the Phillips Fox release. "I don't propose to play out our action against Domain Names Australia in the media, I think that would be an unseemly thing to do. We will be putting a media release out either today or tomorrow," he said. "The facts speak for themselves."

DNA and its lawyers have also alleged auDA "jumped the gun" when it called for consumers affected by DNA's alleged breach to come forward and join a class action in the Federal Court. For its part, auDA says it was just trying to be prudent in gathering details of individuals that received the letter at the centre of the action in case the class action proceeded.

"Rather than use the appropriate channels, auDA have jumped the gun and attempted to act outside the court's processes. This is even more alarming when you consider that auDA is not even able to tell us precisely what their claim is or what they allege we have done wrong," said Rafferty.

Rafferty went on to question what it was auDA was complaining about in the first place. "If auDA has any legitimate concerns regarding the notices that we send to business, then they should tell us precisely what they are so that we act on them. We have invited auDA to detail their problems with our documents and they haven't responded."

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Talkback 12 comments

    Are these guys at DNA stupid o ...Anonymous -- 01/09/03

    Are these guys at DNA stupid or something? My company was almost conned into paying one of these things that are designed to look like invoices. Put the guy in jail and he hasn't learned his lesson from the last time.

    The excuse that they don't know that the complain is, is just stupid. The question over authority is still not an excuse to deceive people. Shut them down!

    Having just received a second ...Anonymous -- 01/09/03

    Having just received a second and equally misleading letter from DNA - designed to look like an invoice with a 'Due Date'- for a domain name that I don't own and don't want to own, I am complaing again to the ACCC with the suggestion that this time they be closed down.

    I received 'invoices' for two ...Anonymous -- 01/09/03

    I received 'invoices' for two domain names I don't own, although the names were similar to ones I do own. My wife had completed the payment details and was ready to post it back when I queried it. I immediately contacted Qld Fair Trading and faxed a copy to them.
    In a busy office environment, it would be easy to confuse this 'invoice' with a valid one and dispatch the payment. Shut down DNA!

    I received an invoice too, but ...Anonymous -- 02/09/03

    I received an invoice too, but could tell it was a try-on for more money and was not confusing to me as to what it was. I think most people who got one do not fully understand domain name registrations, and what they did or did not own. Ask any webmaster and I bet none of them were fooled. Because some customers are ignorant of the workings of domain names I don't see how it makes DNA guilty of anything.
    I can't believe how gullible some people can be.

    It's a bloody sales letter, gu ...Hans Deville -- 02/09/03

    It's a bloody sales letter, guys. Why can't you see it for what it is? I've also had letters and invoices from people trying to get into my wallet
    from Foot & Mouth card painters to domain name companies other than the one I registered with to Avon ladies leaving booklets under my doormat and sons of Generals from Nigeria wanting to send me money. Wise up people. When in doubt read it and if necessary phone the organisation who sent it to you and get an explanation. This issue is only one of ignorance and shows how silly some business people can be. Leave DNA alone.

    >Fullname: Hans Deville ...Anonymous -- 02/09/03

    >Fullname: Hans Deville
    >Location: Australia
    >Occupation:
    >Comments:
    >It's a bloody sales letter, guys. Why can't you
    >see it for what it is? I've also had letters and
    >invoices from people trying to get into my wallet
    >from Foot & Mouth card painters to domain name
    >companies other than the one I registered with
    >to Avon ladies leaving booklets under my doormat
    >and sons of Generals from Nigeria wanting to
    >send me money. Wise up people. When in doubt
    >read it and if necessary phone the organisation
    >who sent it to you and get an explanation. This
    >issue is only one of ignorance and shows how
    >silly some business people can be. Leave DNA
    >alone.

    Well, some people don't get fooled, but some do. The issue here is that the 'sales letter' is designed to look like an invoice, and even addressed to the accounts department in an effort to bypass the people that know it's bogus. Accounts people are not expected to be experts in every item that appears on an invoice, and these 'sales letters' are designed to slip through the system. In large compaines this is quite possible, and the 'letter' is desgined to do just that.

    The whole issue with this company is that the MD got taken to court and his last company was shut down due to him doing the exact same thing. If you think he should be left alone to continue to break the law and profit from this deception then this is a sad day for people that work hard to make an honest dollar. If you think is still ok, then mind if I rip you off and see how you like it?

    Having gone through the annoyi ...Anonymous -- 05/09/03

    Having gone through the annoying waste of time these clearly designed to mislead letters create when the accounts people recieve this letter with the concern that our web addres is no longer registered and having to waste time reviewing the letter to confirm its details, Shut them done or at least a major fine with the costs of going through this junk reimbursed to everyone they have sent this crap to.

    So perhaps auDA does not have ...Geoff McQueen -- 05/09/03

    So perhaps auDA does not have a legal basis to chase down DNA, but then what not just refuse to deal with DNA for their registrations... that would sort them out quick smart for all their letters full of credit cards under false pretences and have no-where to actually deliver service...

    DNA should be shutdown. Then a ...ihate DNA -- 22/10/03

    DNA should be shutdown. Then again... if people weren't stupid enough to fall for their stupid games, there wouldn't be a problem.

    People need to be aware that scum like this exist and they will do anything to scam people out of money.

    I'll certainly be letting as many people as i know become aware of such a scam. As i have with previous "nigeria" scams.

    You'd expect it from the africans, but when one of our own does it to us... it makes me mad. When i find this guys phone number and home address ill be letting everyone know what it is, regardless of the consequence. :)

    I received an invoice and paid ...Anonymous -- 28/10/03

    I received an invoice and paid it. Unfortunately
    I only realised there was a problem when I wasn't getting my Email. I cannot even measure the cost.
    I even went into there Melbourne office after several phone calls to find they aren't there anymore. Thanks very much.However I am always available to meet with them and work something out

    Recieved another "Invoice ...Anonymous -- 21/11/03

    Recieved another "Invoice" today from DNA, wanting $237 for a .com (Only) domain. What a joke. And they NEVER answer their phones.

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