Two related companies that scammed small businesses out of a total $2.3 million with fake internet domain name renewal notices have been fined close to $2 million.
Competition watchdog the ACCC said the Federal Court found Domain Corp Pty Ltd and Domain Agency Pty Ltd had sent false and misleading domain name registration renewal notices to about 300,000 businesses between November, 2015 and, at least April, 2017.
The fake renewal notices were in fact for the registration of a new domain name at a cost of $249 to $275, the ACCC said, and misled the businesses into thinking they were paying for renewing existing domain names.
ACCC acting chair Delia Rickard said the domain companies had knowingly deceived businesses.
“These sham operations target small businesses, capitalising on a lack of understanding of the domain name system or a busy office environment,” Ms Rickard said.
The court also found the sole director of both companies, Steven Bell, also known as Steven Jon Oehlers, was involved in the conduct.
Bell has been disqualified from managing a corporation for five years, and ordered to pay $8000 in costs. He and the companies are subject to orders requiring that any future notices sent to companies clearly state that the notice is not a bill and carries no requirement to pay any money.
Ms Rickard urged businesses to be vigilant when paying domain registration invoices.
She said any business that received a renewal notice for a “.com” or “.net.au” domain name should check that the notice applies to renewing their proper domain name.
