FTC settles with VeriSign over domain transfers

But the company didn't acknowledge any wrongdoing

By Joris Evers

September 24, 2003 12:00 PM ET

IDG News Service - In a settlement with U.S. regulators, VeriSign Inc. has agreed to abstain from marketing practices that allegedly tricked consumers into transferring domain names to its Network Solutions business.
In the settlement with the U.S. Federal Trade Commission, VeriSign also agreed to allow the FTC to monitor its compliance with the settlement and recommitted to providing refunds or free service to customers who responded to an allegedly deceptive marketing mailing from Network Solutions, according to court documents published by the FTC today.
The mailing was sent to customers of competing domain name registrars. In it, Network Solutions warned recipients that their domain names were about to expire and offered to renew them for a fee. The mailing didn't state when the names would expire, which in some cases was months or years off. Also, renewal actually meant transfer of the domain to Network Solutions, making the notices deceptive, the FTC charged.
In August 2002, VeriSign said the FTC was investigating its marketing practices (see story). The company, as part of the settlement, hasn't admitted violating any laws, the FTC said.
The settlement follows an agreement in January of a class-action case in which VeriSign said it would refund customers who had responded to the mailing and had second thoughts or give such customers a year of free domain registration if they in fact wanted to renew their domains.

Reprinted with permission from

IDG.net
Story copyright 2009 International Data Group. All rights reserved.

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