FUD is an acronym for "Fear, Uncertainty, Doubt" and refers to a type of specious marketing where one scares or confuses prospects in order to take a particular action. An example is Domain Registry of America, which sends out letters to website owners telling them their domain is about to expire and giving them a link to go secure their domain. In actuality, the domain name is usually set to auto-renew through a different domain registrar, but the typical website owner doesn't know who their domain registrar is or how much it should cost or when it should auto-renew, and so Domain Registry of America sows confusion and scares people into switching domain registrars over to their over-priced domain registration service.
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