Who They Are

Domain Registry of Canada is a domain name registrar who is trying to trick people into transferring their domain names to them.  They've been doing this for several years by e-mail but fairly recently have begun sending out snail mail "as a courtesy to domain name holders."  I've received those e-mails in the past and recently received a letter for the first time.

What They Are Doing 

Domain Registry of Canada scans the WHOIS records for domains that are expiring in the next couple of months and they send out e-mail or snail mail requesting the domain owner to renew their domain name.  In many cases, the domain owner is unaware that this letter did not come from their actual registrar and they proceed to renew the domain name.  The process of renewing a domain name with a different registrar requires a domain transfer to occur first.  Once the domain owner has agreed to renew the domain name with Domain Registry of Canada a domain transfer will take place, at which point Domain Registry of Canada becomes the new registrar for the domain name.

Its Legal

Technically speaking, there is nothing illegal about what they are doing.  They are simply requesting that you transfer your domain name to them, however, they are playing on the fact that many people will unknowingly bite the bait.  You'll see in the letter at the end of this article that they clearly indicate what their intentions are.

From the article:

• "now is the time to transfer and renew your name from your current Registrar to the Domain Registry of Canada."
• "Domain name holders are not obligated to renew their domain name with their current Registrar or with the Domain Registry of Canada."
• "Review our prices and decide for yourself."  Speaking of prices, their rates are about double the price at most other companies.
• "THIS IS A SOLICITATION FOR THE ORDER OF SERVIES AND NOT A BILL, INVOICE OR STATEMENT OF ACCOUNT DUE.  YOU ARE UNDER NO OBLIGATION TO MAKE ANY PAYMENTS ON ACCOUNT OF THIS OFFER UNLESS YOU ACCEPT THIS OFFER."

The Fine Print

I haven't read all of the fine print (I'd like to think I have better things to do) but one clause caught my attention.

• IF LAWSUIT(S) ARE THREATENED: If we are sued or threatened with lawsuit in connection with Service(s) provided to you, we may turn to you to indemnify us and to hold us harmless from the claims and expenses (including attorney's fees and court costs).  Under such circumstances, you agree that you will, upon demand, obtain a performance bond with a reputable bonding company or, if you are unable to obtain a performance bond, that you will deposit money with us to pay for our reasonably anticipated expenses in relation to the matter for the coming year.  Such deposit will be drawn down as expenses are incurred, with all account notices sent to the WHOIS contact information provided in association with your domain names and/or account.  We shall not be obligated to extend you any credit in relation to such expenses and we may terminate the Services for a failure to make or renew such a deposit.  We will return any unused deposit upon the later of one year from deposit or the conclusion of the matter.

Basically, if they are sued regarding this transfer they will force you to pay for the legal fees. 

How To Avoid Getting Tricked

Now that you are aware of this scam, simply avoid all contact with Domain Registry of Canada.  However, there are surely other companies out there who are doing similar things.  The best piece of advice is to know who your domain name is registered with. Many companies will register domain names on your behalf using a 3rd party registrar so it is possible that you'll receive e-mail from a company you are unfamiliar with.  The company that you have direct contact with will always be able to renew your domain name.  If you receive any e-mail or snail mail that is not directly from the company you deal with, you should always contact them directly.

The Letter