Leading domain name registrar
confirmed Wednesday that it is being investigated by the U.S. Federal Trade Commission (FTC) amid accusations that the company has engaged in unfair marketing practices.
The FTC probe comes on the heels of a series of lawsuits filed against the Mountain View, California, company by rival registrars claiming that VeriSign tried to take their customers by sending out deceptive domain name renewal notices. The notices informed customers that their domain names were about to expire and encouraged them to renew the domains with VeriSign, the lawsuits claim.
A VeriSign spokesman said Wednesday that the company was instructed by the FTC not to comment on the request for documents regarding its marketing practices.
The FTC confirmed Wednesday afternoon that it is investigating VeriSign, but a spokeswoman would not offer any other comment on the matter. The FTC has scheduled a press conference for 11 a.m. EDT Thursday, but the spokeswoman would not say if the investigation would be discussed.
Whether or not the accusations against VeriSign prove to be true, they could serve to shake confidence in the company, which is already experiencing financial difficulties.
The VeriSign (VRSN) share price dropped 13.79 percent to US$5.50 a share on news of the FTC probe Wednesday.