VeriSign had been sending out expiry notices to domain name owners, which included customers of BulkRegister. The notices referred to a deadline for reply of 15th May 2002, the implication being that the domain name registration was about to expire.
BulkRegister alleged that the deadline bore no relation to the actual expiry date of the registrations and that the notices were “false and misleading attempts to lure customers to VeriSign.” The company further claimed that it had lost large numbers of customers to VeriSign as a result of the notices.
The specific terms of the settlement have not been disclosed, however, BulkRegister has stated that those of its customers who moved to VeriSign will be transferred back to their BulkRegister accounts, any sums paid by those customers to transfer to VeriSign will be repaid and their domain name registration will be extended for one year free of charge.
VeriSign also faces the same allegations in an action brought by Go Daddy Software, a smaller domain name registrar, and under two class actions. VeriSign’s domain name marketing campaign is currently being investigated by the US Federal Trade Commission.