Sydney, Jan 10: Dreamscape Networks International Pte Ltd, the company behind the Crazydomains.com.au website, has been fined $56,340 by the Australian Competition and Consumer Commission (ACCC) for misleading conduct.
The ACCC issued three infringement notices to the Singapore-registered entity for falsely representing two ‘free’ products and misstating the benefits of its Domain Privacy product.
The website, known for offering services like domain name registration, web hosting, and web design, was found to have automatically added a ‘3-month website builder’ and an ‘additional domain name registration’ to customers’ shopping carts between October 2019 and July 2023.
These products were advertised as ‘free’, ‘3 months free gift’, or ‘1 year free gift’, but included an auto-renewal feature that incurred fees after the free period.
The ACCC stated that Dreamscape failed to clearly inform consumers at the point of sale about the auto-renewal and subsequent fees of these ‘free gifts’, leading to potential consumer misunderstanding.
ACCC Commissioner Liza Carver emphasized the importance of businesses providing accurate product information.
“Consumers may have been misled into believing they were receiving a complimentary product, without clear disclosure of ongoing subscription costs for these so-called free products,” she said.
The commission also noted that Dreamscape offered a Domain Privacy product for .au domain name purchases, claiming to ‘lock down from hijacking and hide personal information’. However, from October 2019 to November 2023, the product sold did not conceal contact names or email addresses from public domain, contradicting its advertised benefits.
Following the ACCC’s enforcement action, Dreamscape has updated its product disclosures regarding auto-renewal, costs, and the functionalities of its privacy products.
The action by the ACCC highlights its ongoing commitment to addressing deceptive subscription practices and enforcing compliance with the Australian Consumer Law.
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