The case involved London-based companies Quantum Management and
TLD Network. They were advertising and selling domain names with
suffixes such as .brit, .usa, .scot and .sex to UK and US
consumers. These domain names can only be accessed via alternative
networks and with modified web browsers, in contrast with domain
suffixes such as .com, .net or.uk that can be accessed by all
internet users, but this was not made clear.
The two companies sent out unsolicited e-mails and advertised on
their web sites that “the latest domain name extension has
arrived”. The OFT found the ads to be misleading, because they gave
the impression that the domain names on offer operated in the same
way as top-level domain names such as .com.
According to the OFT, Thomas Goolnik, director of both
companies, has given written assurances that he will not publish
these or other similar adverts for domain name registration.
The Control of Misleading Advertisements Regulations of 1988
give the OFT the power to stop misleading ads by means of a court
injunction, or to seek assurances or undertakings. Under the
Regulations, the OFT can act only when a complaint has been
received.
