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Internet Domain Name Registrants Settle Deceptive Trade Practices Action With Register.com for $1.9+ Million

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Case ID: 2678 | Technology | 12/29/2004

The parties have reached a tentative nationwide $1,930,500 settlement in a class action filed against Internet domain-registration service Register.com, Inc., and its parent, Forman Interactive Corporation, on behalf of persons who alleged that Register.com breached its contracts with them and violated deceptive trade practices laws between January 30, 1998, through March 6, 2001, when it failed to disclose to them that it used a "Coming Soon" page on newly-created domains that advertised Register.com services.

Register.com's "Coming Soon" page informs Internet users that the domain name has been recently registered and provides hyperlinks to some of Register.com's services, as well as the services of others. The action did not allege that Register.com's use of the page was inherently illegal. Rather, Register.com's alleged failure to tell persons who were registering about that practice caused the problem. On March 6, 2001, Register.com revised its Services Agreement to expressly refer to the use of the "Coming Soon" page.

The settlement will provide each person who registered a domain name with Register.com during the applicable period with a certificate, in the form of a promotional code, for $5 off the costs of Register.com's domain name registration fees or the costs of domain name renewal fees for all domain names registered or renewed using Register.com's services for a redemption period of nine months following the issuance of the certificate.

Participating registrants will be able to use the certificate in combination with any other offers, promotions, or discounts by following the directions that will be made available when the settlement is finalized. Participants will also be able to use their certificate by calling Register.com's customer service center via a toll-free customer service number that will be provided.

The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for November 3, 2003.

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