The OFT announced yesterday that it has ordered Swansea-based Internet Registrations Bureau Limited (IRBL), trading as Euro Web Designs, to cease its practices after the company failed to show that any third parties really existed.
IRBL's trick was to inform unsuspecting businesses that they had to act quickly if they wanted to stop their business name being registered as a domain name for a third party. According to reports, they would charge around £100 for each domain name.
According to the OFT, the company and directors Paul Dilling and Susan Ford have now given written assurances that they will not claim to have been contacted by third parties interested in registering domain names when no such interest has been expressed to them.
John Vickers, OFT Chairman, said:
"We will continue to crack down on advertisers who make misleading claims about their services. Businesses should be wary of domain name registration companies cold calling and putting pressure on them to purchase names in haste."
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.