Network Solutions And ICANN Both Sued For Allowing Domain Front Running

from the as-expected dept

Tue, Feb 26th 2008 12:31am — Mike Masnick

Back in January, it was revealed that Network Solutions was involved in the rather sleazy practice of registering up any domain you searched for through its search engine, and holding onto it for five days -- unless you bought it through them only. Since Network Solutions charges more than most other registrars, but is generally considered more "trustworthy" as a place to search for domain names, this was a pretty big deal. Lots of people search at NetSol and then register elsewhere -- so by holding on to the domains and forcing you to pay NetSol's inflated prices seemed like a scam. In fact, it seemed quite similar to the sleazy practices of questionable registrars, Network Solutions actually tried to claim it was actually to protect against those questionable registrars. ICANN, reprising its usual role as being powerless to do anything useful, promised to look into the matter, and promptly claimed that Network Solutions was doing nothing wrong. Many people feel otherwise, so it's hardly a surprise to find out that both Network Solutions and ICANN have been sued by lawyers attempting to create a class action suit over the activity. Whether or not it deserves a class action lawsuit is a separate discussion, but it's still difficult to understand how NetSol could possibly think this is a good idea or one that would be welcomed by anyone.

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Filed Under: class action, domain names, front running
Companies: icann, network solutions

22 Comments

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johndifo, 26 Feb 2008 @ 3:25am

1and1 does even worse it sells you the domain but do not register it at ICANN, then ask for a refund and explain that to the brainless mutant alien people at their support center. good luck. I mean good luck.
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Anonymous jerk, 26 Feb 2008 @ 3:53am

@johndifo
...What?
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TX CHL Instructor (profile), 26 Feb 2008 @ 4:10am

Better registrar...
www.texas-domains.com
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Adam, 26 Feb 2008 @ 4:11am

Class action?
I would say so. This is an anti-competitive action. They are abusing a dominant market position and restraining trade. As well - although the many individuals affected have lost only tens to hundreds of dollars, NSI has made millions if not hundreds of millions - one of the reasons why class actions exist...
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Tim, 26 Feb 2008 @ 5:13am

Re:
What?

I have never had a problem with 1and1. 3 of my clients are currently using them as host and registrar with nary a problem between them.
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Jim, 26 Feb 2008 @ 5:24am

Got me too!
In October of 2005, I searched NetSol for a domain and within days, someone had registered it with NetSol's privacy feature. I'm not talking about about a common name, but a unique company name. I find it hard to believe someone else was planning to use this name. I believe either NetSol, or some possibly connected third party was logging searches and registering searched domains in the hopes they could sell the domain throught NetSol's Certified Offer Program. Of course, this means offer fees that go to NetSol. Oh, and "Note: The Certified Offer amount must be over $100 USD." In the meantime, they collect per click revenue on bullsh*t search. Just because they put up a page doesn't mean they're not squatting. These people are scumbags.
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DFS, 26 Feb 2008 @ 5:52am

NetSol has gotten me several times
Drives me nuts, client does a search, then tells me what name they want, I go to 1&1 to buy it for them, and boom... it's registered to Network Solutions. My $7 domain turns into a $35 pain in the rump.

I hate Network Solutions. I hope they're forced to stop this crap.

And by the way, I have almost 100 clients with domains on 1&1 and like Tim, never had a problem either.
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Michael McCullough, 26 Feb 2008 @ 6:03am

what goes around
unfortunately most of us already realize this about netsol.
play their game find your website then sit on it for 5 days; otherwise if you want a cheaper rate then find one (like godaddy) then call netsoll and register the domain vs online. they will negiotate!
you said it right SleazeSolutions; mayby someone should get that website and have it point to netsol!
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Nick Overstreet (profile), 26 Feb 2008 @ 6:17am

Network Solutions needs to be stopped
I've had many dealings with NS over the years and none of them have ever been pleasant. All of their prices are higher then other providers and their service has been terrible.
When the domain front running news broke in January I swore to never do business with them again.
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Bob, 26 Feb 2008 @ 6:24am

Why?
Why is netsol still priced that way? How does this work for them to be priced at 5 times the best rate available for the -exact?- product?
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Richard, 26 Feb 2008 @ 6:41am

it's not right
This along with the domain tasting by netsol and others... I feel confident this bogus business model will end if the ICANN fee becomes non-refundable.
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Anonymous Coward, 26 Feb 2008 @ 6:47am

I completely agree,I hav had a real bad experience.
Today the domain was available,tomorrow morning the domain is gone ....the registrar blocked the domain before i could register it.
Should be sued to the fullllllll
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VirginWool, 26 Feb 2008 @ 6:49am

NetSol Fun
So why not look up doamins at GoDaddy, or 1and1? Why even bother with NetSol?
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Paul, 26 Feb 2008 @ 7:24am

Happened to me
Went to buy, but saw it cost a total of $45, so before completing the sale, I went to GoDaddy only to find it bought by NetSol. So, I bought through NetSol out of fear it not being available later.

Crazy. I plan to transfer it later
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Phil, 26 Feb 2008 @ 7:42am

NetSol
So the first question is if your other domain registars are so much better then NetSol then why are you not using their WHOIS features?

Registering domain names for the past 13 or so years I have come to realize NetSol cost more becuase you get what you pay for with no headaches. Yes they cost more but so does a Porsche over a Geo. You want more features, better service then you spend the money.

I have never had a hard time dealing with them, never had a domain name issue and never worry that they will close shop and my names become worthless.

Yeah lets register with godaddy and call in for some tech support then get the sales pitch instead of tech support. Never understood why all their tech support people get paid on sales.. "Oh you want that feature to work then you need to buy this product instead"
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Anonymous Coward, 26 Feb 2008 @ 8:21am

All domains registrars are same,they block the names,up the price,register it for 2 years, wait if there is a bid, iam sure somebody desperately lookin for the domain name,will pay good money .
To register a website best thing wud be to have a list of websites names u hav in mind,check for alternatives,register them on the same day by online.

Simple and clear :-)
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JoeyT, 26 Feb 2008 @ 8:24am

This happened to me
I searched for an available domain name on netsol and then went to finally register it elsewhere the next day only to find out that netsol had "owned" it now. Jerks. I HAD to buy it from them if I wanted the site name. And the register info said they'd hold onto it for a year, not for 5 days. So, not sure which is correct. I'll never use them again, that's for sure.
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Enrico S., 26 Feb 2008 @ 9:28am

Network Solution's and ICANN liability
I agree that Network Solutions� business plan to �reserve� all available name search queries was questionable from an ethics and business point of view.� I, for one, am surprised that Network Solutions and ICANN have been sued in a class action format.�

I originally posted about potential consumer protection liability related to NSI�s reserve policy here, but NSI quickly modified it�s policy and provided adequate notice on its web site in order to inform consumers that it would be reserving searched domains.� That post is found here.�

Consumer protection lawsuits are all about misrepresentation and deception.� Once Network Solutions posted notice on its web site that it would be engaging in this particular business practice, it is hard to imagine how consumers would argue they were �deceived.�

As far as ICANN liability, the only possibility is an argument that Network Solutions was violating the accreditation agreement with ICANN and ICANN failed to follow-up on that known violation.� However, I have not seen any good analysis on the Internet which suggests that a violation of policy did occur.�

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Anonymous Coward, 26 Feb 2008 @ 10:50am

Go domain searching like mad!
Ok, this is something that I've always suspected which is why I would always use the most arcane methods of seeing if a domain is taken.

Just for giggles I just started, and then canceled, the process of buying qwqrsdfss.com and qwqrsdfss.net from network solutions... $35/year my butt! Anyway, I'm sure they are actively registering those now.

Maybe if everyone goes to their site and looks for some stupid random string of characters it will screw with their system? Just an idea. ;-)
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Harold Bush, 27 Feb 2008 @ 2:38pm

NetSol
There is absolutely no need to use netsol for anything. GO Daddy or Dotster will allow anyone to do a whois. If you don't trust them (using dotster since 1997) get your own free whois - here is the tiny url http://tinyurl.com/26etos.
I used Network Solutions prior to 1997 and they were even worse than they are today. Privatization is a great idea - this is the real world example.

Support ASCII Art! and Don't kick over the bit bucket!
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Shashi Bellamkonda, 20 Jun 2008 @ 6:28am

NetSol Listens... AndActs
I work at Network Solutions. We know how important this issue is for everyone, and not only did we listen, we're acting. I want to say that we are not acting in a "sleazy" fashion, and that there are serious aspects to the matter, like domain tasting policies that create some nuances.

Next week ICANN can vote an important issue to resolve to resolve front running for once and for all. Network Solutions is advocating that ICANN acts now, and we have published an official statement on our web site to that end.

Please excuse this URL, but given the seriousness of this issue, it was appropriate to provide a link: http://tinyurl.com/63yaox

Shashi
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Jeremy, 23 Dec 2008 @ 11:57am

Typicall
Wow, you only move after getting sued... Tells me how to solve issues! Screw tech support!
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