RE: [DNS] ACCC takes on DNA

RE: [DNS] ACCC takes on DNA

From: Jason Pay <jasonpay§>
Date: Fri, 3 Oct 2003 13:56:30 +1000
I wonder if the outcomes of this will really be a deterrent to future 
scams, unless the 'costs' are greater than the profits, the action of the 
ACCC will be pointless, apart from exposing a situation where the 
punishment for breaking the Trade Practices Act is outweighed by the 

Also see the press release from the ACCC at:

 ACCC Institutes Proceedings Against Domain Names Australia Pty Ltd &
Chesley Paul Rafferty 

The Australia Competition and Consumer Commission has instituted Federal
Court proceedings against Internet domain name supplier, Domain Names
Australia Pty Ltd and its sole director, Chesley Paul Rafferty for
alleged breaches of the Trade Practices Act 1974. The ACCC alleges that
since from at least June 2003 Domain Names Australia Pty Ltd has made
false or misleading representations to businesses who held a registered
internet domain name by sending them notices inviting them to register a
new internet domain name which was substantially similar to the
business's existing domain name and which were styled like an invoice. 

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 contrary
to section 52 of the Act as it had the appearance of an invoice and
contained representations to the effect that: 

- the registration of the business's existing name was about to expire; 

- the company was offering to re-register the business's existing name;

- the business was under an obligation or need to pay the amount
referred to in the notice. 

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. 

The ACCC further alleges that Mr Rafferty was knowingly concerned and
aided and abetted the alleged contravening conduct of Domain Names
Australia Pty Ltd. 

The ACCC is seeking: 

- a declaration that Domain Names Australia Pty Ltd has breached
sections 52 and 64(2A) of the Act; 

- a declaration that Domain Names Australia Pty Ltd's sole director Mr
Chesley Paul Rafferty was a party to the contravention; 

- injunctions restraining future conduct by both Domain Names Australia
Pty and Mr Chesley Paul Rafferty; 

- an order that Domain Names Australia Pty Ltd send a corrective
disclosure notice to recipients of the relevant documents ; and 

- costs 

A directions hearing has been set down for tomorrow (3 October 2003) in
the Federal Court in Melbourne before Justice Finkelstein. 

MR 209/03 

2 October 2003 


Jason Pay
Midrange Administrator: AIX LINUX 
IBM Global Services
+61 (0)2 61242137
Received on Fri Oct 03 2003 - 00:00:00 UTC

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