ACCC institutes proceedings against Domain Names Australia Pty Ltd & Chesley Paul Rafferty

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; and
• 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.