Domain Name Registration Services is a SCAM!
It's not illegal BUT IT SHOULD BE!
This has happened over many years with my clients. I'll be contacted by a cranky client (and rightly so) saying they received a letter (yes letter, It's rarely an email) stating that their domain name is about to laps and this is the final notice for payment. On closer inspection of the letter the domain name to be registered is almost always a .com domain and not the .com.au that they own. In the letter sample provided by my client you can see how official it looks with the big red FINAL NOTICE and everything. Most people do miss the fact that is is not their .com.au domain and I have had one client (that I know of) that has paid it.
Why is it not illegal?
I think because they are not scamming you but simply selling you a domain name you don't have.
Why should it be illegal?
Well for very obvious reasons, it is misleading and if you wanted that domain you would have purchased it from a cheaper source for $20 instead of their price of $249 (OMG! that is a 1031% markup).
How can I avoid this happening to me?
Two ways, if you own todsbusiness.com.au then purchase todsbusiness.com, keep in mind they may still send you a scammy letter for todsbusiness.biz or other domain types. The second is to purchase Domain Privacy when you purchase your .com.au domain name (it's about $5 - $10 a year on top of the domain name).
Oh yeah, also here is their site if you want to tell them what a great job they are doing (NOT! sorry for the 90's reference) this is their website: https://domainnamereg.com