VeriSign ordered to halt marketing campaign

Jun. 20, 2002

A federal court in Phoenix ordered domain-name giant VeriSign Inc. late Wednesday to discontinue a marketing campaign that has spurred complaints of deceptive advertising from rivals.

Domain-name seller Go Daddy Software Inc. sued market leader VeriSign earlier this month in U.S. District Court in the District of Arizona, seeking to force VeriSign to stop sending out ``domain name expiration notices'' that sought to trick rivals' customers into unwittingly transferring their accounts.

Go Daddy charged that the notices amounted to false and deceptive advertising, interference with customer relationships, misappropriation of trade secrets and consumer fraud.

VeriSign agreed to halt the campaign in a court order signed on Wednesday, but a Go Daddy spokeswoman said the suit would continue as Go Daddy seeks to recover damages.

A VeriSign spokesman said he could not comment until he had seen the order.

The letters sent out by VeriSign warn recipients that they could lose their domains if they do not send $29 to VeriSign. Customers who return the forms inadvertently switch their accounts to VeriSign, whose annual fee is much more than Go Daddy and many other registrars typically charge.

More at: http://www.siliconvalley.com/mld/siliconvalley/news/editorial/3510463.htm