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Verisign: REFUND Anyone?
... The Federal Trade Commission charged VeriSign with deceptive-business practices on Thursday in U.S. court in Washington after the firm sent out "domain name expiration notices" to competitors' customers in the spring of 2002.
VeriSign warned domain-name holders that they could lose control of addresses like "www.example.com" if they did not promptly send $29 to VeriSign.
The forms were intended to trick domain owners into unwittingly transferring their accounts to VeriSign, the FTC charged.
VeriSign agreed to provide refunds or a year of free service to thousands of customers under a class-action settlement reached earlier this year in a California court. Friday's FTC settlement, in which the company did not admit or deny guilt, means that it could face steep fines if it resorts to such marketing tactics again.
VeriSign must also allow the FTC to monitor its marketing efforts for the next five years.
"This matter relates to a marketing campaign that ended more than a year ago," VeriSign spokesman Tom Galvin told Reuters. "VeriSign cooperated fully with the FTC and is pleased that the matter is fully resolved."
An FTC official declined to comment...
Looks like FEDs are finally catching up with these bad boys.
Complete news story avaiable at:
http://reuters.com/financeNewsArticle.jhtml?type=governmentFilingsNews&storyID=3447335
... The Federal Trade Commission charged VeriSign with deceptive-business practices on Thursday in U.S. court in Washington after the firm sent out "domain name expiration notices" to competitors' customers in the spring of 2002.
VeriSign warned domain-name holders that they could lose control of addresses like "www.example.com" if they did not promptly send $29 to VeriSign.
The forms were intended to trick domain owners into unwittingly transferring their accounts to VeriSign, the FTC charged.
VeriSign agreed to provide refunds or a year of free service to thousands of customers under a class-action settlement reached earlier this year in a California court. Friday's FTC settlement, in which the company did not admit or deny guilt, means that it could face steep fines if it resorts to such marketing tactics again.
VeriSign must also allow the FTC to monitor its marketing efforts for the next five years.
"This matter relates to a marketing campaign that ended more than a year ago," VeriSign spokesman Tom Galvin told Reuters. "VeriSign cooperated fully with the FTC and is pleased that the matter is fully resolved."
An FTC official declined to comment...
Looks like FEDs are finally catching up with these bad boys.
Complete news story avaiable at:
http://reuters.com/financeNewsArticle.jhtml?type=governmentFilingsNews&storyID=3447335
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