Network Solutions Fraud?
Good news for people who have been tricked into buying a domain from Network Solutions. 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.
It actually happened to me yesterday. I spent hours to find a good domain name and, in the end, Network Solutions stole that name before I could get it. I did not buy the domain name I liked because it would cost me $34.99 if I buy from Network Solutions, while GoDaddy.com cost only $9.99 and even less with promo code. So I bought 5 other domains from my favourite registars company, GoDaddy.com, and not the one I wanted.
The reason why I used Network Solutions to search the domain because I can search lots of domains at once. I wish I knew Network Solutions tactic, I would never use their service. Hopefully this law suit will succeed as such practices are really a violation of both business ethics and law. I hope Network Solutions has to pay through the nose, and lose lots of business besides.
Read the press release:
Network Solutions Sued For Defrauding Millions
ICANN also named in Class Action
LOS ANGELES, Feb. 25 /PRNewswire/ — Network Solutions has forced millions of people to buy Internet domain names from them instead of cheaper competitors through a scheme that’s netted the firm millions of dollars, a federal class action lawsuit filed today by Kabateck Brown Kellner, LLP states. ICANN, whose policies facilitate the scheme, is also named in the suit, filed in U.S. District Court, Central District of California.
“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? 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,” said Brian Kabateck, lead counsel in the class action and Kabateck Brown
Kellner’s Managing Partner.
Whenever someone searches for the availability of a domain name through Network Solutions’ website, the company immediately registers the name for itself, preventing other companies from selling it and forcing consumers to
pay Network Solutions’ expensive fees.
If a consumer were to go to another, cheaper site to register the name, they would find the name is “unavailable.” Consumers are never informed that inquiring as to a name’s availability through Network Solutions results in the company holding a monopoly on selling that name.
This allows Network Solutions to continue charging substantially higher prices for domain name registration. Network Solutions charged $34.99 to register the name sought by this suit’s lead plaintiff. A competitor would have charged $9.99.
Network Solutions’ scheme is made possible by ICANN. ICANN allows companies that sell domain names to avoid paying registration fees for names cancelled within five days. Thus, Network Solutions can defraud customers at no cost to itself.
ICANN is aware that Network Solutions is abusing this policy and yet continues to facilitate its actions.
ICANN is the international organization, headquartered in Marina Del Rey, CA, that regulates domain names and other Internet protocols.
Kabateck Brown Kellner is one of the nation’s foremost consumer law firms. Its clients have won more than $750 million against Google, Yahoo!, Farmer’s Insurance, Eli Lilly and others. As a plaintiff’s-only firm, Kabateck Brown Kellner is always on the consumers’ side.
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-25-2008/0004761959&EDATE=Tags:Cheat, Domain, Domain name, Fraud, GoDaddy, ICANN, Kabateck Brown Kellner, Law, Network Solutions
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