Hi Joel, welcome to the forum.
I think you're going to find a big difference in the definition of
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traffic that should be ours anyway
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between your affiliates and yourselves.
Like Adrian says, if this guy hadn't registered the domain it will go to an error page a competitor, or somewhere else that doesn't represent your brand as you'd like.
He's at least making you some US sales you'd have lost without him so it's not all
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traffic that should be ours anyway
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And it's definitely a better experience for your customers than laurashley.co.uk!
Try typing "laurashley" into Google
Your own listing is this one which isn't going to convert very well either.
LAURA ASHLEY -Laura Ashley - Laurashley.Co.Uk
This isn't meant to slag off your company's efforts in any way. It just shows that there is plenty of ground your own marketing hasn't covered, and that affiliates are plugging these holes for you.
Unfortunately it looks like the original set of T&C's weren't worded by someone who has a very good grasp of online brand management (or spelling for that matter!).
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"Please note: the use of the Laura Ashley brand name and misspellings is prohibited within Google The Laura Ashley Display URL, LAURA ASHLEY is strickly prohibited within Google "
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I'd suggest you talk to CJ and to your affiliates before leaping in though. A lot of niche affiliate tactics work around picking up a long tail of traffic that your own marketing has missed so make sure any new rules you want to introduce aren't going to suddenly chop that tail off!