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  1. #1

    Network Solutions Sued For Alleged Fraud

    Well, it's finally happened:

    http://sev.prnewswire.com/computer-e...5022008-1.html

    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.
    Original topic here:

    http://www.webhostingtalk.com/showthread.php?t=661957

    No doubt many of you are happy.

    IMHO this suit is rather too much. Network Solutions isn't permanently blocking anyone from being able to register their desired domain names elsewhere, and they're not pointing a gun to your heads compelling you to register it with them.

    But...that's what happens when you give someone a cause to sue you, even if you believe you're right.

  2. #2
    Join Date
    Feb 2003
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    Connecticut
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    Well, I agree that this isn't entirely lawsuit-worthy, but:

    a) ICANN isn't doing anything about it
    b) If more registrars started doing this, it would become an issue

    If ICANN was actually proactive about this it probably wouldn't have even been an issue. Or, if NSI made domain tasting an option rather than a default, people might not be as miffed about it.

    I'll be over at Moniker enjoying my peace of mind

  3. #3
    Quote Originally Posted by Dan L View Post
    If ICANN was actually proactive about this it probably wouldn't have even been an issue.
    To think that ICANN is exploring a move to make the $0.20 fee registrars pay nonrefundable. It's just that some people won't wait.

  4. #4
    Join Date
    Apr 2005
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    San Diego, CA
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    Interesting... how much do registrars pay for say a chunk of 1000 domain names?
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  5. #5
    Join Date
    Nov 2002
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    http://www.webpronews.com/topnews/20...suit-clarified

    This class action will only benefit plaintiffs who can demonstrate that they were forced to buy from NetSol because NetSol was holding the domain hostage following a domain lookup. Plaintiffs could potentially get back $25 (the difference between NetSol pricing and cheaper registrars). The lawyers will get 30%+.
    I suspect there is more outrage over NetSol practices than actual plaintiffs who can demonstrate the above. I think it will be tough to prove illegality & to find significant numbers of qualified plaintiffs.

  6. #6
    Quote Originally Posted by WHC - Travis View Post
    Interesting... how much do registrars pay for say a chunk of 1000 domain names?
    Registrars pay $6.42 to VeriSign and $0.20 to ICANN for .com, so you can do the the math from there. They get those fees back when availing of their Add/Grace Period (AGP) thing.

    Quote Originally Posted by Techno View Post
    This class action will only benefit plaintiffs who can demonstrate that they were forced to buy from NetSol because NetSol was holding the domain hostage following a domain lookup.
    And I wonder how exactly one can demonstrate that since: a) users don't own those searched-for domain names, and b) Network Solutions isn't holding them permanently. Of course, the judge might actually buy the plaintiff's argument...

  7. #7
    Join Date
    Nov 2007
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    1,246
    Quote Originally Posted by Dave Zan View Post
    Well, it's finally happened:

    http://sev.prnewswire.com/computer-e...5022008-1.html



    Original topic here:

    http://www.webhostingtalk.com/showthread.php?t=661957

    No doubt many of you are happy.

    IMHO this suit is rather too much. Network Solutions isn't permanently blocking anyone from being able to register their desired domain names elsewhere, and they're not pointing a gun to your heads compelling you to register it with them.

    But...that's what happens when you give someone a cause to sue you, even if you believe you're right.
    I saw that coming... I just KNEW somebody would find a good reason to sue em for that
    Crissic Solutions, LLC - Affordable VPS Solutions.
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  8. #8
    http://www.week.com/news/technology/15946332.html

    i think it was a smart idea on Network Solutions part

  9. #9
    Join Date
    Nov 2002
    Posts
    4,376
    That article claims that "Network Solutions has forced millions of people to buy Internet domain names from them".
    I doubt that the number is that high as NetSol "only" registers about 20,000 domains/week - only a portion of which would fall into the "forced" category. Does anyone have detailed before/after stats for NetSol? I'm sure that would be good evidence for either the defense or plaintiff.

    http://www.webhosting.info/registrar...SOLUTIONS.COM/

  10. #10
    Join Date
    Mar 2002
    Location
    CH
    Posts
    496
    Some statistics on NSI:
    http://www.dotandco.net/ressources/i...1/COM/index.en

    Only till July 2007, the website gets updated from time to time after ICANN releases there reports.

    There delete rate at this time was very low.

  11. #11
    Good, maybe now NSI's CEO will get fired after they lose this lawsuit.....

  12. #12
    Quote Originally Posted by RossH View Post
    after they lose this lawsuit.
    The judge will be the judge of that, of course.

    Incidentally they already changed CEOs:

    http://newsroom.networksolutions.com...dunbar-as-ceo/

    Network Solutions today announced that Chairman and Chief Executive Officer Champ Mitchell and the Company’s Board of Directors have appointed W. Roy Dunbar to succeed Mr. Mitchell as Chief Executive Officer, and Mr. Mitchell will continue with the Company as Chairman of the Board.

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