February 12, 2003 -- (WEB HOST INDUSTRY REVIEW) -- The questionable domain name sales tactics that have confused countless North American consumers are now taking the UK by storm.
Numerous companies in the UK have subsequently come under fire in recent months for allegedly misleading consumers and companies on the topics of domain name registration and renewal.
Among the alleged misdeeds by several firms: falsely claiming to be acting on behalf of major domain registrars, using scare tactics and sending "renewal invoices" for services that are not actually related to purchased domain names.
Nominet UK, which oversees the UK's .uk domain registry, began issuing warnings about various domain name scams early last year. Among them was an advisory to beware of bogus callers claiming that an individual was attempting to register their domain name. The caller would then advise the person to renew or register the domain with them.
According to reports, one company Nominet decided to single out for allegedly practicing such tactics was domainregistrarservices.biz (DRS). Nominet apparently singled out the firm after receiving several consumer complaints. DRS reportedly told several complainants it was acting under the authority of Nominet to warn them about other people attempting to register domains that were similar to theirs. According to vnunet.com, both DRS and uk-names.biz, which was also accused of using "mystery shopper" tactics, have decided to close up shop since the controversy arose. vnunet says it has received over 100 emails from companies complaining about the selling tactics of several domain name resellers, and government agencies in the UK have also received complaints.
Other questionable tactics that are not necessarily illegal include a promotion that encourages users to "pre-register" .eu domains (the European Union approved the continent-wide extension in 2002). The problem is, the EU has yet to even select a registrar to oversee the extension's operations, and it is warning buyers that pre-registering for .eu domains does not guarantee anything. "Given the risks for confusion 'pre-registration' services are not recommended by the Commission," the EU says on its site. "In any case consumers and companies are encouraged to check exactly what is and what is not being offered."
These problems have been largely caused by the surging popularity of domain name affiliate programs, and the falling price of a domain have encouraged the establishment of countless "fly by night" operations. An estimated 20 domain name resellers cease operations every month, often leaving the administrative status of the domains they leave behind up in the air. Because of its global nature, there are no blanket regulatory domain bodies beyond ICANN, which handles the Internet's Top Level Domains (TLDs), and many bogus operations have learned to take advantage of this.
Aside from being misleading and often deceitful, these tactics can also have a negative impact on the larger domain name registration and Web hosting communities as a whole. Virtually every hosting operation in existence resells domain name registration services in one way or another, and every time a consumer is misled, another person will be turned off of choosing a SME-focused operation instead of a larger, more established firm. As a result, smaller companies providing hosting and domain services run the risk of being mistakenly identified as "fly by night" companies - which is why firms should always state their policies, affiliations and contact information in a clear and easy to understand fashion.
