Network
Solutions has been named in a class action suit alleging that it "forced"
millions of people to buy internet domain names from the company instead of from
cheaper competitors.
The suit claims that when users search for the availability of a domain name
through Network Solutions' website the company immediately registers the name
for itself.
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This prevents other registrars from selling the domain name and forces
consumers to pay Network Solutions' fees. The process is known in the industry
as 'front running'.
The federal class action lawsuit filed by
Kabateck
Brown Kellner in the US District Court, Central District of California also
accuses internet authority
Icann
of facilitating the scheme.
"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?" said Brian
Kabateck, lead counsel in the suit and managing partner at Kabateck Brown
Kellner.
"Each time someone asks Network Solutions about a domain name, the firm
creates a monopoly for itself, forcing consumers to pay the price it demands."
Imagine if you asked a car dealer if they had a black convertible and were then forced to buy the car from them
Brian Kabateck Managing partner, Kabateck Brown Kellner
Kabatek claimed that if a consumer were to go to another, cheaper site to
register the name they would find it "unavailable".
The suit argues that consumers are not informed that inquiring as to a name's
availability through Network Solutions results in the company holding a monopoly
on selling that name.
The suit also claims that this allows Network Solutions to charge
substantially higher prices for domain name registration.
Network Solutions charged $34.99 to register the name sought by this
lawsuit's lead plaintiff, whereas a competitor would have charged $9.99.
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