The action follows investigations by the ACCC and Australian domain name administrator auDA into marketing leaflets mailed out by DNA that both the competition authority and administrator allege resembled invoices.
The ACCC and auDA have alleged these leaflets led recipients to believe their domain names could expire and that they consequently had an obligation to pay DNA to re-register those names.
"It is alleged the form of the notice sent by Domain Names Australia Pty Ltd was misleading or deceptive or likely to mislead or deceive," a statement on the ACCC Web site read. "Additionally, the ACCC alleges Domain Names Australia Pty Ltd has contravened section 64(2A) of the Act claiming the notices it sent to businesses asserted a right to payment for the service of registering the domain name when that service was unsolicited and the company did not have a right to payment for that service."
DNA's director Chesley Rafferty has also found himself in the ACCC's cross-hairs.
"The ACCC further alleges that Mr Rafferty was knowingly concerned and aided and abetted the alleged contravening conduct of Domain Names Australia."
A directions hearing will take place in Melbourne's Federal Court today.
Go ACCC. Having been the recipient of one such letter, and the supposed clarifying follow-up letter, I can vouch that they were very missleading.
I nearly registered with them, believing recent changes made such change a requirement. It was only the nagging thought that I'd already paid for a 2 year registration that made me hesitate. How many busy sys admins would have approved this expense? How many accounting departments would have realised the change?
DNau deserves to be condemed and punished for this intentionally deceptive campaign. My only question is why has it taken so long?