The case involved London-based companies Quantum Management and TLD Network. They were advertising and selling domain names with suffixes such as .brit, .usa, .scot and .sex to UK and US consumers. These domain names can only be accessed via alternative networks and with modified web browsers, in contrast with domain suffixes such as .com, .net or.uk that can be accessed by all internet users, but this was not made clear.
The two companies sent out unsolicited e-mails and advertised on their web sites that “the latest domain name extension has arrived”. The OFT found the ads to be misleading, because they gave the impression that the domain names on offer operated in the same way as top-level domain names such as .com.
According to the OFT, Thomas Goolnik, director of both companies, has given written assurances that he will not publish these or other similar adverts for domain name registration.
The Control of Misleading Advertisements Regulations of 1988 give the OFT the power to stop misleading ads by means of a court injunction, or to seek assurances or undertakings. Under the Regulations, the OFT can act only when a complaint has been received.