June 7, 2002
(Computerworld)
Internet domain-name company Go Daddy Software Inc. is suing VeriSign Inc. to prevent the Internet registrar from engaging in allegedly deceptive marketing practices prompting Go Daddy customers to switch their business to VeriSign.
In the lawsuit, filed Wednesday in U.S. District Court in Phoenix, Go Daddy alleged that VeriSign engaged in false and deceptive practices, interfered with customer relationships and misappropriated trade secrets.
Scottsdale, Ariz.-based Go Daddy also accused Mountain View, Calif.-based VeriSign, which maintains the central registry of .com, .org, and .net Web site names, of consumer fraud.
VeriSign spokeswoman Cheryl Regan said the company doesn't comment on ongoing litigation.
In a statement, Go Daddy said the lawsuit was triggered by letters that VeriSign sent to Go Daddy's customers marked "Domain Name Expiration Notices." The letters encouraged customers to send $29 to renew each domain name or risk losing those names, Go Daddy said.
However, Go Daddy said, the "reply by" dates on those notices didn't correlate with actual domain name expiration dates. By signing and returning the form, Go Daddy's customers inadvertently transferred their business to VeriSign -- and at a higher price, Go Daddy said. Go Daddy's charges its customers $8.95 per domain name; VeriSign charges $29.
A spokesman for Go Daddy couldn't be reached for further comment.
VeriSign has also been sued by other companies and consumer groups, including Baltimore-based BulkRegister.com, for similar practices (see story). In May, a federal judge in Maryland ordered VeriSign and its bulk-mailing contractors to stop sending mailings to BulkRegister.com customers. The judge ruled that BulkRegister.com had been hurt by the mailings and that the damage would continue if the mailing weren't stopped.
VeriSign is also facing several class-action lawsuits by shareholders who have accused the company of misleading them about its business and financial condition.