Melbourne IT slapped for improper marketing

Melbourne IT slapped for improper marketing

Domain Name registrar Melbourne IT has been slapped on the wrist by the Australian Domain Authority (auDA) for resorting to improper business practices.

The ASX-listed company has found the market tough since it lost its monopoly over the domain, and has since distributed promotional material deemed not to be “in the spirit” of the Domain Name Supplier’s Code of Practice.

The material in question was a promotional letter sent to about 1500 registrants of .au domain names offering assistance in transferring their registration to Melbourne IT.

The promotional materials were sent on February 18 and 19, 2003, to customers of other domain name providers using the AusRegistry database. The letters were sent in envelopes marked Important Account Information that misled customers into believing the material had been sent by their existing provider.

Melbourne IT has acknowledged the breach, sent a correction notice to each recipient of the marketing materials, and published a public notice on its Web site: “Melbourne IT regrets these actions, and notes that the actions were not in the spirit of our obligations under the .au Domain Name Supplier’s Code of Practice, and were in breach of our Registrar Agreement with .au Domain Administration Ltd (auDA), the industry regulator of the .au domain name system,” the correction stated.

“We have undertaken to auDA that we will review all of our systems and procedures and conduct training of relevant staff to ensure Melbourne IT adheres to all its obligations.”

Spokespersons at Melbourne IT did not respond to requests for comment on the breach.

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