Feb. 10, 2006 - Case #12-17: Use of Deceptive Domain Name/URL (Uniform Resource Locator)
(Adopted May, 2001.)
REALTORŪ X, a principal broker in the firm XYZ, was technologically savvy and constantly looking for ways to use the Internet to promote his firm and drive additional traffic to his Web site.
Being an early adapter to the Internet, he had registered, but not used, domain names that incorporated or played on the names of many of his competitors and their firms, including ABC, REALTORSŪ.
REALTORŪ X and his information technology staff concluded that one way to drive traffic to the firms website would be to take advantage of the search engines commonly used by potential buyers and sellers. They realized that when potential buyers or sellers searched on key words like real estate or REALTORSŪ or on similar words, lists of domain names would appear, and that when consumers searched the Internet for ABC, REALTORSŪ, one of the domain names that might appear would be REALTORŪ Xs domain name, abcREALTORS.com.
REALTORŪ X decided to take advantage of the domain names that he had previously registered, and pointed several that used, in various ways, the names of his competitors, including abcREALTORs.com, to his site.
In a matter of days, REALTORŪ X learned that he had been charged with a violation of Article 12 of the Code of Ethics by REALTORŪ A, the owner of ABC, REALTORSŪ , alleging that his (REALTORŪ Xs) use of the domain name abcREALTORS.com presented a false picture to potential buyers and sellers and others on the Internet.
At the hearing, REALTORŪ X defended himself indicating that, in his opinion, use of a domain name was not advertising or a representation to the public but simply a convenient way for Internet users to find relevant websites. Moreover, When websurfers reach my home page, there is no question that it is my site since I clearly show XYZs name and our status as REALTORSŪ, he continued. These complaints are just a lot of sour grapes from dinosaurs who arent keeping up and who dont realize that on the Internet its every man for himself.
The Hearing Panel disagreed with REALTORŪ Xs justification, indicating that while his use of a domain name that employed another firms name might not be precluded by law or regulation, it did not comply with the Codes higher duty to present a true picture.
REALTORŪ X was found in violation of Article 12, presenting an untrue picture in his representation to the public.
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