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March 9, 2008

Domain registrar Network Solutions has finally been hit with a federal class action lawsuit on Feb. 25 for its unethical and now very controversial practice of front-running domain names.

Additionally, ICANN (the Internet Corporation for Assigned Names and Numbers) was named as well in the lawsuit since its policies facilitated the scheme.

The class action lawsuit was filed by consumer law firm Kabateck Brown Kellner over Network Solutions' unethical practice of locking up domain names as soon as they are searched for on its website, preventing other companies from selling them and forcing consumers to pay Network Solutions' highier fees, says the law firm.

"Imagine if you asked a car dealer if they had a black convertible and were then forced to buy the car from them. Would you get a good deal?" says Brian Kabateck, lead counsel in the lawsuit and Kabateck Brown Kellner's managing partner.

"Each time someone asks Network Solutions about a domain name, the firm creates a monopoly for itself, forcing consumers to pay the price they demand."

ICANN was also named in the lawsuit because its policies greatly facilitated Network Solutions' actions and the "supposedly non-profit" organization was failing to prevent front-running from happening in the future, says Kabateck Brown Kellner.

The whole thing was brought to public attention in January when Network Solutions was accused of front-running domain names, despite its defense that it was actually implementing a "pre-emptive security measure" to protect customers from domain tasters and front-running from external threats.

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Source: Tech Blog

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