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OTTAWA, June 30, 2004 - A Toronto man who targeted
over 73,000 business and non-profit organizations across
Canada with a deceptive mailout for the renewal of their
Internet domain names has been sentenced to a $40,000
fine and a five-year prohibition order. The sentence
results from an investigation by the Competition Bureau
into Mr. Daniel Klemann and Internet Registry of Canada
(IROC) under the misleading representations provisions
of the Competition Act.
The deceptive mail piece informed
recipients that their Internet domain name registration
was about to expire and gave several options for
renewal. It was designed to mislead recipients into
believing that they were existing customers of IROC's
domain name registration service. The mail piece also
gave the general impression of being an invoice mailed
on behalf of a department or agency of the Government of
Canada in charge of the registration of Internet domain
names.
According to the terms of the
prohibition order, Mr. Klemann and 1480455 Ontario
Incorporated, operating as IROC, are prohibited from
engaging or participating in any activity involving the
making of representations for the purpose of soliciting
business for five years without first obtaining a
positive Written Opinion from the Competition Bureau,
pursuant to section 124.1 of the Act.
"The Bureau's investigation and
the sentence in this matter shows that the Bureau will
vigorously pursue perpetrators of deceptive mail scams
that target consumers and businesses in Canada," said
Raymond Pierce, Deputy Commissioner, Competition Bureau.
The Bureau suggests that consumers
and businesses take a few steps to protect themselves:
- read their mail carefully;
- verify that any invoices are
from regular suppliers;
- make sure the product was
ordered before paying any invoice; and
- report any mail that appears
to be false or misleading to the Competition Bureau.
Consumers who suspect they have
been a victim of deceptive marketing practices are
encouraged to contact the Bureau's Information Centre at
1-800-348-5358, or PhoneBusters' National Call Centre at
1-888-495-8501.
The Competition Bureau is an
independent law enforcement agency which ensures that
all Canadians enjoy the benefits of a competitive
economy. It oversees the application of the
Competition Act, the
Consumer Packaging and Labelling Act, the
Textile Labelling Act and the
Precious Metals Marking Act.
For media enquiries, please
contact:
Maureen McGrath
Senior Communications Advisor
Communications Branch
(819) 953-8982, or (613) 296-2187 (cell)
For general inquiries, please
contact:
Information Centre
Competition Bureau
1-800-348-5358
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