Information about Crazy Domains Pty Ltd's breach of Registrar Agreement

Posted by auDA on 10 February 2014

Updated on 29/09/16

auDA acknowledges the report produced by independent registered company auditors HLB Mann Judd in 2014 and 2015 to audit Web Address Registrations’ compliance with the Deed of Undertaking in July 2013 (refer to below). The audit reports found Web Address Registration had achieved compliance with the requirements as noted in the Deed, in areas where it was previously non-compliant.

Updated on 10/02/14

The Deed of Undertaking that Crazy Domains Pty Ltd (now called Web Address Registration Pty Ltd) entered into in July 2013 (see below) required the company to, at its own cost, engage an independent registered company auditor approved by auDA to audit its compliance with the Deed over a two year period.

The first audit was conducted by company auditors HLB Mann Judd in December 2013. The audit report found that Web Address Registration had complied with the requirements of the Deed, although some items were not completed within the specified timeframes.

The next audit is due to take place in July 2014.

Updated on 29/07/13

Over the weekend of 26-28 July 2013, corrective notices and invoices were sent to Crazy Domains customers, as required by the Deed of Undertaking (refer to information below).

It was brought to auDA's attention that the re-issued invoices were not in the form approved by auDA.

The error was rectified on 29 July 2013, and correct invoices have now been re-issued to Crazy Domains customers.

As announced on 11 July 2013, auDA has determined that Crazy Domains Pty Ltd has breached its obligations under the Registrar Agreement:

• to comply with all applicable law (in particular the Australian Consumer Law)
• to comply with the .au Domain Name Suppliers' Code of Practice; and
• to act in good faith in its dealings with auDA.

auDA’s determination is based on the following facts:

From 8 December 2011 to 2 September 2012:

• Crazy Domains Pty Ltd was the auDA accredited registrar
• the name and branding of the website at www.crazydomains.com.au represented to consumers that they were dealing with and entering into contracts with the registrar Crazy Domains Pty Ltd
• consumers registering .au domain names through the Crazy Domains-branded website at www.crazydomains.com.au were dealing with and entering into contracts with the registrar Crazy Domains Pty Ltd
• the invoices to consumers were issued by Carlayan Pty Ltd and Dreamscape Networks FZ-LLC
• the invoices misstated the identity of the supplier of the service and did not amount to proper tax invoices under the A New Tax System (Goods and Services Tax) Act 1999.

 
From 3 September 2012:

• Crazy Domains Pty Ltd was the auDA accredited registrar
• the name and branding of the website at www.crazydomains.com.au represented to consumers that they were dealing with and entering into contracts with the registrar Crazy Domains Pty Ltd
• Crazy Domains Pty Ltd, without auDA's knowledge or consent, permitted its reseller Dreamscape Networks FZ-LLC, a foreign company registered and resident in Dubai, to assume control of the Crazy Domains-branded website at www.crazydomains.com.au
• consumers registering .au domain names through the Crazy Domains-branded website at www.crazydomains.com.au were dealing with and entering into contracts with the reseller Dreamscape Networks FZ-LLC
• the invoices to consumers were issued by Dreamscape Networks FZ-LLC.

These facts were not fully disclosed by Crazy Domains Pty Ltd until June 2013, after auDA commenced its investigation into possible breaches of the Registrar Agreement in February 2013.

auDA has required Crazy Domains Pty Ltd to enter into a Deed of Undertaking setting out the actions that it or Dreamscape Networks FZ-LLC must take in order to rectify its breaches of the Registrar Agreement:

• prominently publish a corrective notice on the website at www.crazydomains.com.au
• change the Terms of Service on the website at www.crazydomains.com.au so that they make it clear that services are being provided by Dreamscape Networks FZ-LLC 
• change the company name of Crazy Domains Pty Ltd to a name that is not confusingly similar to the Crazy Domains branding used by Dreamscape Networks FZ-LLC*
• send notices to all registrants of .au domain names registered or renewed by Crazy Domains Pty Ltd since 8 December 2011 informing the registrant of the true position, including the name of the entity with whom they have contracted
• issue proper Tax Invoices to all .au domain name registrants who registered or renewed .au domain names through Crazy Domains Pty Ltd between 8 December 2011 and 2 September 2012
• Crazy Domains Pty Ltd (and not Dreamscape Networks FZ-LLC) to issue renewal notices to registrants of .au domain names registered prior to 3 September 2012
• for a period of 2 years: 
• not commit any material breach of the Registrar Agreement or make any omission which amounts to a material breach of the Registrar Agreement
• not engage in any conduct in relation to the promotion, supply or registration of .au domain names which would contravene the Australian Consumer Law or any other law
• implement an effective compliance program in its business to ensure that the the Code of Practice and auDA Published Policies, and the Australian Consumer Law are complied with in relation to the promotion and supply of .au domain names
• ensure that Dreamscape Networks FZ-LLC complies with its reseller obligations 
• at its own cost, engage an independent registered company auditor approved by auDA to audit its compliance with the Deed of Undertaking .

* The name of the company was changed on 5 July 2013 to Web Address Registration Pty Ltd (ACN 154 051 699).