Network Solutions sued for price fixing
Class Action News
[##_1L|1230393116.jpg|width="120" height="138" alt=""|_##]Network Solutions is being sued for front-running internet domains. In early January, the well-known domain registrar started self-registering domains that customers search for but don't immediately buy. The company insists it's merely trying to crackdown on so-called "domain front running," but at least one customer is clever enough to realize this argument makes no sense.
Today, domain hunter Chris McElory chucked a federal class action lawsuit at Network Solutions, insisting that the Comcast of domain registrars uses "fraudulent and deceptive business practices to effectively trap consumers into paying its grossly inflated domain name registrations fees".
In the words of Brian Kabateck, one of McElory's lawyers, Network Solutions is guilty of "a very sophisticated form of price fixing". We take issue with the "very sophisticated" bit.
If you visit the Network Solutions website and show interest in a domain without actually putting your money down, the company will quickly register the address under its own name. For the next four days, you can still purchase the address from Network Solutions, but you can't purchase it from any other registrar.
Back in January, for instance, one loyal Reg reader searched the site for "network-solutions-registers-all-names-searched.com," and minutes later, he discovered that "network-solutions-registers-all-names-searched" belonged to none other than Network Solutions. Meanwhile, other readers have pulled this trick with domain names that describe the company's behavior in very different terms.
Though it won't speak to us, Networks Solutions tells others that by self-registering domains, it's protecting customers from cybersquatters on the lookout for highly marketable urls. "In response to customer concerns about Domain Name Front Running (domains being registered by someone else just after they have conducted a domain name search)," the company has said, "we have implemented a security measure to protect our customers."
So, Network Solutions is front running domains in an effort to prevent other outfits from front running. And judging from a recent ICANN study, those other outfits don't exist.
And even if they do exist, Network Solutions' little trick doesn't prevent them from front-running. It merely forces them to spend their dirty dollars with Network Solutions. Network Solutions claims that it would never sell domains to front runners, but we question its ability to identify front runners. After all, it has failed to identify itself.
The company claims that these mysterious front runners are also "domain tasters," those clever characters that temporarily register thousands of domains just to test their "marketability." And it wants the world to know that if ICANN would just prevent people from returning addresses within five days for a full refund, it will quit self-registering domains.
But this is merely stating the obvious. If ICANN removes the five-day full refund, Network Solutions couldn't self register domains without paying good money for them. And it won't pay good money for them.
As Chris McElory's suit says, Network Solutions' self-registering trick is merely an effort to make some extra dough. If customers search on a name but don't immediately buy, his complaint says, they "cannot register their domain name through any of Network Solutions' less expensive competitors because their chosen domain is unavailable through any other service - which (unbeknownst to the customer) is now held exclusively by Network Solutions - who is now offering to sell the domain to anyone willing to pay its grossly inflated registration fee."
The suit even goes so far as to say that Network Solutions isn't the only guilty party. ICANN is also named. "ICANN rules tacitly say that Network Solutions practice is acceptable," Kabateck told us. "We aren't seeking damages against ICANN. We just want a declaration from the court that its allowing this to go on."
What does Kabateck think of Network Solutions' claim that it's merely trying to destroy domain tasters? "Maybe I'm stupid, but I don't get," he says. And we can assure you he's not stupid.
Related listings
-
Blu ray Faces Class-Action Lawsuit
Class Action News 02/14/2008It was only a matter of time. Most have known for a while now that Bluray players were designed in different phases. The problem is that the same goes for the discs themselves. This leads to a situation where some players play some movies while some ...
-
Sprint Nextel hit with class action
Class Action News 02/08/2008[##_1L|1408281251.jpg|width="120" height="138" alt=""|_##]Sprint Nextel Corp. has been hit with a class action lawsuit alleging the No. 3 mobile phone carrier is defrauding wireless consumers. The lawsuit was filed in Illinois federal court. “Defenda...
-
Sallie Mae slapped with class-action suit
Class Action News 02/05/2008Sallie Mae, which a week ago obtained new financing and ended its court battle over a failed $25 billion buyout of the student lender, is now the subject of a class-action suit. Law firm Coughlin Stoia Geller Rudman & Robbins LLP said it filed a ...
Illinois Work Injury Lawyers – Krol, Bongiorno & Given, LTD.
Accidents in the workplace are often caused by unsafe work conditions arising from ignoring safety rules, overlooking maintenance or other negligence of those in management. While we are one of the largest firms in Illinois dedicated solely to the representation of injured workers, we pride ourselves on the personal, one-on-one approach we deliver to each client.
Work accidents can cause serious injuries and sometimes permanent damage. Some extremely serious work injuries can permanently hinder a person’s ability to get around and continue their daily duties. Factors that affect one’s quality of life such as place of work, relationships with friends and family, and social standing can all be taken away quickly by a work injury. Although, you may not be able to recover all of your losses, you may be entitled to compensation as a result of your work injury. Krol, Bongiorno & Given, LTD. provides informed advocacy in all kinds of workers’ compensation claims, including:
• Injuries to the back and neck, including severe spinal cord injuries
• Serious head injuries
• Heart problems resulting from workplace activities
• Injuries to the knees, elbows, shoulders and other joints
• Injuries caused by repetitive movements
For Illinois Workers’ Compensation claims, you will ALWAYS cheat yourself if you do not hire an experienced attorney. When you hire Krol, Bongiorno & Given, Ltd, you will have someone to guide you through the process, and when it is time to settle, we will add value to your case IN EXCESS of our fee. In the last few years, employers and insurance carriers have sought to advance the argument that when you settle a case without an attorney, your already low settlement should be further reduced by 20% so that you do not get a “windfall.” Representing yourself in Illinois is a lose-lose proposition.