Swansea-based Adam Ripley became the subject of numerous complaints to the Office of Fair Trading. Acting variously as Solus Online Ltd, ISIS Online Ltd, Select Registrations and European Domain Bureau, Ripley's system appeared to involve calling businesses and telling them they only had a short period of time – usually a matter of minutes – in which to accept an offer to register the domain name or else it would be registered by the unidentified third party.
The OFT did not believe that such third parties existed and Ripley was unable to provide evidence to support the claims. Further, businesses were offered a 10-year registration for .co.uk domain names when, in reality, only two-year periods are available.
The OFT took court action after Ripley failed to provide undertakings that he would refrain from using his misleading sales tactics. Following an application for an interim injunction, Ripley has now provided interim undertakings to the High Court that he will cease those practices which the OFT considers to be misleading. If Mr Ripley continues to contest the case, a full trial will take place to seek a court order against Mr Ripley.
John Vickers, OFT Chairman, said today:
"Businesses should be wary about cold-callers putting pressure on them to purchase domain names in haste. Claims that third parties are interested in names must be substantiated and we will take action where such claims are misleading."