FTC 404’s Canadian Domain Scammers
Posted August 12th, 2008
A U.S. District Court Judge has shut down a Canadian operation aimed at bilking American small businesses and nonprofits out of millions of dollars. Their method? Sending bogus “invoices” for an annual “Website Address Listing” renewal, as well as “Search Engine Optimization” services.
The bills were made to appear as if they were a simple renewal and the recipients had always done business with the senders. Of course, many of those who paid up believed they would lose their Website addresses unless the bill was paid. According to the FTC, Toronto-based Data Business Solutions, doing business as Internet Listing Service, has been sending fake invoices since 2004, listing the existing domain name of the consumer’s Website or a slight variation of the domain name.
The FTC’s complaint charged that most who paid these solicitations received no domain name registration services or search engine optimization. Historically, the FTC has been cautious in initiating litigation, so this enforcement action is especially noteworthy. Judge Robert Dow Jr. has ordered a halt to the company’s claims and frozen the defendants’ assets in the U.S., pending trial. The FTC will also seek a permanent halt to the operation and will ask the court to order the company to pay back victimized consumers.
Here are a few suggestions for businesses regarding trademark and domain name solicitations: (a) know who your domain name registrar is; (b) if some other company sends you an offer to list or maintain your domain (that you’re already paying for), pitch it in the trash; (c) for any company purporting to offer real SEO services, check them out carefully before agreeing to anything; and (d) if you’re already caught in one of these scams, report the company to the FTC.
For a copy of the FTC Complaint, see http://www.ftc.gov/os/caselist/0723038/080514internetlistingservcmplt.pdf
For other news coverage, see:
PC World – http://www.pcworld.com/businesscenter/article/147179/us_ftc_halts_domain_name_registration_scam.html
PC World (commentary) – http://pcworld.about.com/magazine/2407p028id125366.htm
Wired – http://blog.wired.com/27bstroke6/2008/06/bogus-domain-re.html
Network World – http://www.networkworld.com/community/node/28929
Posted in True Domain Crime by Ernest Grumbles
