Businesses warned over domain name hustle

Local businesses are being warned by the Office of Fair Trading about the pressure sales tactics of some internet domain name registration agents.

The OFT has received a number of complaints from businesses that have been cold called by agents attempting to pressurise them into buying domain names.

Typically, these agents inform the business that a third party is interested in - if not on the brink of - registering close variants of their name. A very short timescale is then offered for the business to pay to register these domain names with the agent before the third party is able to. When challenged by the OFT, the registration agents have not been able to substantiate the existence of the alleged third parties.

OFT Chairman John Vickers said: "Businesses should be wary of cold callers putting pressure on them to buy domain names in haste. We have warned a number of domain name registration agents about their selling practices and will continue to crack down on any misleading claims."

The OFT has advised that if businesses have doubts about the reliability of a domain name offer, the OFT recommends that they contact their internet service provider (ISP), their usual domain name registration agent, or their local Trading Standards Service, who can advise on a course of action. If they think they may have been misled, businesses should complain to their local Trading Standards Service in the first instance.

A domain name is the name by which an organisation is known on the Internet. Domain names are used to identify particular websites and are also used in e-mail addresses.

Lesley Cowley, Managing Director of Nominet UK, the national registry for all .uk domain names, added: "Local businesses are particularly vulnerable to this kind of practice. We advise anyone who is approached in this way not to be coerced into accepting any unsolicited offers."

Although not a governing or regulatory body, Nominet UK provides a public service for the .uk namespace on behalf of the UK internet community, www.nominet.org.uk

(SP)