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Ministerial Statement
Ms MEAGHER (Cabramatta—Minister for Fair Trading, and Minister Assisting the Minister for Commerce) [3.27 p.m.]: Section 86A of the Fair Trading Act gives me the authority to issue a public statement warning about an unfair business practice so further damage to consumers is minimised while Fair Trading continues its investigations. I want to issue a warning to New South Wales business operators to be wary of any unsolicited approaches to register their Internet address with Domain Names Australia Pty Ltd or Internet Registry Pty Ltd. The warning also extends to approaches from Mr Chesley Rafferty, a director of both companies. Domain Names Australia has been targeting businesses across Australia, including thousands in New South Wales, with a letter seeking a registration fee of up to $237 to register their domain name.
A domain name is the unique address that identifies a web site. Domain names in Australia are registered with DOT AU Domain Administration, a non-profit organisation that has assumed responsibility for that task. A domain name licence has to be renewed every year and, normally, a renewal notice is sent from the original supplier. The problem with Domain Names Australia Pty Ltd and Internet Registry Pty Ltd is that their letters are worded in such a way that they could easily mislead recipients into believing that the fee is to renew an existing domain name rather than to establish a new one. Business operators who sign up with these two companies end up with an extra domain name that may be of no additional value to their business.
After receiving complaints from across the State, the Office of Fair Trading contacted Mr Rafferty seeking to have his companies amend their letters to make it clear about exactly what they were offering. A legal representative for Mr Rafferty contacted Fair Trading to advise that they did not believe the letter was misleading. However, several days later he advised that they would consider amendments to it. Since then, Mr Rafferty has stopped responding to requests for information from Fair Trading and, based on a recent complaint, it appears that the companies have not made any effort to amend their misleading ways. Fair Trading is investigating the matter. I urge all business operators to be wary of unsolicited approaches to renew their domain name, particularly if they come from Chesley Rafferty or one of his companies. Businesses that have received an offer from Domain Names Australia or Internet Registry are encouraged to report it to Fair Trading by calling the hotline number, 13 32 20.
Ms HODGKINSON (Burrinjuck) [3.30 p.m.]: The Coalition joins with the Government in relation to the warning just given by the Minister under section 86A of the Fair Trading Act. As the Minister said, it is unconscionable that people such as Chesley Rafferty and companies such as Domain Names Australia Pty Ltd and Internet Registry Pty Ltd are taking the approach they have in poaching small businesses and vulnerable people in relation to the relatively new service of providing an Internet or web site domain name.
Web sites are an integral part of business today, and it is important that small businesses are aware of exactly how to register domain names. The Government has fallen down in providing advice to small businesses, and this enables them to be misled by companies such as Domain Names Australia Pty Ltd and Internet Registry Pty Ltd and people such as Chesley Rafferty. The Minister for Fair Trading should be telling small businesses how to obtain an appropriate domain name and what are the appropriate processes for developing this important business tool. It is 2003 and the Internet, email facilities, and online services are important elements of business.
How many small businesses are simply not aware of the exact processes for registering their web sites and ensuring that their web sites are kept up-to-date on an annual basis? People like Chesley Rafferty are able to target businesses across Australia and particularly in New South Wales because this information is simply not available. Why? Because the Minister for Fair Trading is too lazy to let businesses know exactly what they should be doing to target this important clientele and new business. The Minister said that Mr Rafferty must amend his letters to make clear what he is actually offering businesses. A much more practical way for the Government to addresses such problems and ensure they do not arise again is to give small business operators proper instructions on exactly how to set up their domain names and web sites, and on what sort of fees and charges will apply.