Domain Food - Archive - DROA must pay $6 per transfer away in settlement

The Federal Trade Commission has requested that a federal district court enjoin Domain Registry of America, Inc., an Internet domain name re-seller, from making misrepresentations in the marketing of its domain name registration services and require it to pay redress to consumers. According to the FTC, the company told consumers that their domain registrations were expiring, leading many consumers unwittingly to switch their domain name registrar. The company also allegedly did not disclose that it would charge a processing fee to consumers if their transfer request was not competed – for any reason – and failed to provide consumers refunds in a timely manner. Under the terms of the stipulated final order announced today, Domain Registry of America (DROA), based in Ontario, Canada, may be required to provide redress to up to 50,000 consumers, is prohibited from engaging in similar conduct in the future, and is subject to stringent monitoring by the Commission to ensure its compliance with the court order.