Network Solutions Sued for Domain Name Frontrunning, Finally.

by trace richardson on February 25, 2008

Have you ever purchased a domain name? Are you looking to purchase one in the future for your real estate or mortgage website? If so, do not use networksolutions.com. There are two primary reasons: 1) They are gougers, they will charge you $35 to register a name, plus $12 per year to forward that name 2) they will front run you on any searches you do on their website for available domain names. What this means is that if you search for a domain name such as exampledomain.com and it is not taken then they will offer it for purchase. Let’s say you decide you want to compare prices at godaddy.com because you know that paying $35 for a domain name registration is out of line, so you go to godaddy and do a search for exampledomain.com. You will find that it has been registered…. but by who you wonder, it was just available a minute ago at networksolutions.com. You guessed it, networksolutions registers all domains that are searched for at its website which prohibits you from attempting to purchase the domain name elsewhere. They are able to keep registered domains for 5 days without paying if they choose, so they register all domains that are searched for on their site and then dump them within the alloted 5 day grace period. In short, they create a monopoly so that unknowing visitors to their site are forced to purchase domains from them.  These visitors are usually not aware that if they wait 5 days the name will become available again, so they often purchase the over priced domain name as they are not aware they have any other option, other than choosing a new domain name and registering it elsewhere.

Network Solution’s anti competitive practices are finally catching up to them as they are being sued by Kabateck Brown Kellner in a Federal class action lawsuit, ICANN is also named in the suit. This action is overdue and there seems to be a general consensus that Network Solutions has been taking advantage of consumers for quite some time, with their front running actions being the latest in a series of un-consumer friendly actions. Grade = FAIL

(via NetworkWorld)

Author: Trace Richardson builds Mortgage Marketing Websites and helps loan officers generate mortgage leads.

{ 1 comment… read it below or add one }

Shashi Bellamkonda June 20, 2008 at 8:42 am

I work at Network Solutions. This issue is a little more complicated (I know it has been a while since you wrote this), and involves a practice called domain tasting.

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

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