VeriSign is subject to annual audits, according to a 2001 agreement with ICANN, the body that oversees internet domain names. The agreement allows the company to continue, under certain rules, operating its registry and registrar units, and to maintain the central database for .com domains until 2007.
However the same audit revealed that VeriSign has not kept adequate historical records of its database system on a daily basis, as required. The audit also found that the registry has failed to comply with some technical requirements of the agreement.
The US Department of Commerce, which oversees the audit process, has expressed concerns that Ernst & Young did not have access to sufficient information and therefore could not determine clearly the degree of VeriSign’s compliance with the terms of the agreement.
At the same time, VeriSign is facing an investigation by the Federal Trade Commission, regarding a recent domain name marketing campaign. The probe follows lawsuits filed by competitors, who have accused VeriSign of deceptive business practices and “domain name slamming.”
VeriSign settled one of the lawsuits, filed by BulkRegister, last week. However, it still faces the same allegations in an action brought by Go Daddy Software, a smaller domain name registrar, and in two class actions.