Questions on domain name offer

By ADAM GIFFORD

A mass mailing to ".co.nz" internet domain name owners this week seeking to trick them into buying ".net.nz" domains looks likely to backfire after the local "virtual office" unwittingly servicing the scam almost became a victim.

An Australian company trading as Domain Names NZ mailed owners of internet names ending in .co.nz, inviting them to register the same name in the .net.nz space for two years at $237.

Not only does Domain Names NZ not have an existing relationship with those owners, the charge is up to four times as much as customers could expect to pay if they went to a legitimate registrar - if they wanted the extra domain to start with.

The man behind the company is Chesley Rafferty from Western Australia, who is under investigation across the Tasman by Australian domain name administrator auDA and the Australian Competition and Consumer Commission for a similar mail-out in the name of Domain Names Australia.

That mail-out may be found to be in breach of undertakings Rafferty made to the Australian Federal Court last year after an earlier mailing, and he could be in contempt of court.

AuDA chief executive Chris Disspain said he was co-ordinating with New Zealand Domain Name Commissioner Debbie Monaghan and the Commerce Commission about Rafferty's actions on this side of the Tasman.

"You shouldn't assume it is out of our jurisdiction," Disspain said.

The New Zealand commission has received more than 100 complaints from the public about the letter, which gives the impression of an invoice or renewal notice down to the tear-off strip at the bottom, and includes a closing date of August 26.

The commission's director of fair trading, Deborah Battell, said: "People are urged to look carefully at all details before paying any sum requested."

Owners are invited to pay online, or send the strip with a cheque or credit card details to an Auckland address.

That address belongs to Servcorp, which runs a virtual office where calls will be answered or forwarded to a customer call centre - and this is where Rafferty and company have come unstuck.

Servcorp New Zealand manager Bridget Fairweather said she terminated Domain Name NZ's contract a month ago, after Servcorp received a letter inviting it to register a .net version of its own domain.

"I assumed it was the normal renewal and signed it off. The accountant brought it back and suggested there was something wrong," Fairweather said.

"That's when we realised what they were doing and cancelled the contract. No one likes to feel they have been fooled."

She said Rafferty signed up with Servcorp in June last year, providing a security bond and commercial references which appeared to check out.

"The virtual office is a great service but it can attract people who want to make a quick buck, so we try to check clients out thoroughly."

Fairweather said about 50 letters arrived for Domain Names NZ yesterday, the first mail since its letters went out.

"We are returning them to their senders with a suggestion they should contact their own registrar or Domainz, because [Domain Names NZ] may not be legitimate."

Internet service providers, registrars and the domain name commissioner say they have been overwhelmed with calls about the mail-out, and are advising customers to ignore it.