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October 27, 2007

ICANN (Internet Corporation for Assigned Names and Numbers) is investigating into potential allegations of insider information being manipulated to obtain desirable domain names before they are registered by a bonafide individual or business.

ICANN says it will be looking into suspicions that someone or a small group of people with access to specific domain name search requests has been using the query information to illegally gauge interest in those domains and profit from it.

Acquiring searched-for domains differs very much from traditional domain speculation in that the individual or group of individuals are almost certain that potential interest exists and then they try to sell their domains at a substantial profit.

Overall, many of the suspicions of any sharp practice occurring have not yet been confirmed. However, user experiences have led many to believe that there has been some wrongdoing going on and for an extended period of time.

Many individuals who have checked on the availability of a domain have discovered that they have been bought by the time they return just a short time later.

The Internet oversight agency says the perception of sharp practice greatly jeopardizes trust and damages the reputation of the domain name registration industry.

ICANN was launching an inquiry to stop this "perception from evolving to accepted wisdom."

The investigative committee is looking for evidence on whether or not domain fronting is in fact happening.

If the committee does find evidence of insider dealing, it says it will consider what policies and penalties might be imposed to prevent this from happening again. ICANN is to reconvene on this matter on Nov. 21, 2007.

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Source: The WHIR