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07 Jun 2002
VeriSign is facing its fourth lawsuit this year, accused this time of misleading a rival firm's customers to transfer their business to it.
The lawsuit, filed in Arizona by domain name registrar Go Daddy Software, alleges that the California-based internet giant used "false and deceptive advertising, interference with customer relationships, misappropriation of trade secrets and consumer fraud".
Go Daddy said that VeriSign issued "Domain Name Expiration 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, confusing customers.
Go Daddy charges customers $8.95 for its domains and has asked judges to put a halt to VeriSign's direct marketing campaign, which it views as deceptive.
The Arizona firm joins California's Consumer Action Network, domain name registrar BulkRegister and another Los Angeles law firm in taking legal action against VeriSign over its direct marketing.
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