The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court of Australia in Brisbane alleging misleading and deceptive conduct by Mr Stephen Henry Wayt, the proprietor of COM. AU. REGISTER in breach of the fair trading provisions of the Trade Practices Act 1974.
The ACCC has alleged that between January and March this year, COM. AU. REGISTER sent businesses and organisations throughout Australia a facsimile that stated:
"The registration of your Internet Address@reg.com.au is now due. Please check the current company information listed within our database as detailed below and where applicable advise any additions or alterations as necessary. Registration for 12 months $330.00 inc GST."
After receiving a number of complaints, the ACCC has taken legal action against Mr Wayt alleging that the fax was likely to mislead or deceive recipients into believing that COM. AU. REGISTER was responsible for registering Internet domain address registration and that it had dealt with those businesses and organisations previously.
The ACCC has alleged that COM. AU. REGISTER is not able to provide Internet domain address registration and is simply a directory of business names with details of Internet addresses. The ACCC also alleges that COM. AU. REGISTER had no significant prior dealings with the businesses or organisations that it sent the faxes to.
The ACCC has also alleged that some of COM. AU. REGISTER's Internet site representations were likely to mislead or deceive businesses and organisations. For example the ACCC alleges the site represented that COM. AU. REGISTER had 750,000 listings when in fact less than 200 businesses had agreed to be listed and the remaining listings were provided free of charge and without reference to the listed businesses. The Internet site also contained a representation that a benefit of obtaining the services of COM. AU. REGISTER was that inquiring parties could verify registration details through the site to ensure compliance with applicable taxation and statutory authorities whereas the ACCC alleges COM. AU. REGISTER could not provide that service.
By engaging in such conduct the ACCC alleges that Mr Stephen Wayt acted in breach of section 52 and 53 of the Act.
The ACCC is seeking Court Orders including declarations that Mr Wayt breached the Act, injunctions to prevent Mr Wayt from making similar representations in the future and to implement a Trade Practices Compliance Program in any future business of which he has managerial control. The ACCC is also seeking an order for costs.
At this stage, COM. AU. REGISTER has closed down its website and advised the ACCC that all money paid to COM. AU. REGISTER has been refunded to customers.
The first directions hearing is listed for 12 April 2001 in the Federal Court of Australia, Brisbane.