VeriSign faces FTC probe

Domain name registry VeriSign has been hit with a US Federal Trade Commission (FTC) probe over allegations of deceptive business practices during a recent marketing campaign.

The probe is believed to focus on a practice known as 'slamming', in which VeriSign is alleged to have sent misleading renewal notices to customers of rival registrars.

Last month competing registrars Go Daddy and BulkRegister won a preliminary injunction against VeriSign.

Go Daddy filed a lawsuit alleging that VeriSign was using "false and deceptive advertising, interference with customer relationships, misappropriation of trade secrets and consumer fraud".

The firm said that VeriSign issued notices to customers warning that their domain name would be cut off if they did not pay a $29 update fee. But the forms had no correlation to the true expiry date of the exchanges.

Two other class action lawsuits against the firm are also outstanding.

The FTC is examining VeriSign's relationship with hosting company Interland over similar allegations of soliciting for domain naming services. Interland is one of VeriSign's domain name reseller partners.

VeriSign has made no comment other than to say it will cooperate with the FTC.