VeriSign sent "Expiration Notices" to domain name owners, including customers of other registrars, with a "deadline" for reply, the implication being that the domain name was about to expire. In this way, VeriSign allegedly misled customers of other registrars into transferring their business to VeriSign.
The action had been brought against VeriSign by Go Daddy, the world’s sixth largest domain registrar. Last month, the number four registrar, BulkRegister, obtained a similar but narrower order against VeriSign, which was only in respect of BulkRegister’s own customers.
Bob Parsons, Go Daddy founder and president said:
"Go Daddy is pleased with the order. It puts an immediate end to VeriSign's deceptive mailings and all domain name owners will benefit from the agreement. It is our hope that this order will send a strong message to anyone in this industry contemplating the use of such dubious marketing tactics to clean up their act."