Network Solutions suggested to ICANN the adoption of a per-transaction fee to try and rein in the practices of domain kiting and front running domain names in volume.
Network Solutions really didn't need any more public relations disasters after the controversy of automatically registering searched-for domains and "protecting" them for a $35 fee. Though this new controversy may not be quite the hyperbole it's made out to be in some places, it does come with some potentially serious issues.
The information below also appeared as an update to an earlier article about the class-action lawsuit against Network Solutions filed by Kabateck Brown Kellner.
Whether ICANN officially acknowledges the existence of domain front-running, the international organization is named in a class-action lawsuit against Network Solutions. The litigants architecting the suit claim ICANN's return policy allowed Network Solutions to register searched-for domains and then raise the price.
The domain frontrunning issue isn't exactly an open-and-shut case. In fact, it's more like an X-Files case. ICANN can't find evidence the practice really exists, and the one entity who says he has proof won't provide that proof.It's not like enacting policies against ghosts, exactly. You don't need proof of the existence of frontrunning to enact a policy against it. But in this case, proof might have helped Network Solutions not look so bad.
Over the last month I and others have written quite a bit about domain tasting and how registrars are taking advantage of the policy, allowing them to capture potential domain names that their customers are searching for.
It took a small panel of us to translate the minutes of the International Corporation for Assigned Names and Numbers (ICANN) meeting regarding the practice of domain tasting, which read like an MC Escher painting, but we think we got it, and here's what we've come up with:
Bill Hartzer has performed a very interesting piece of domain name research and written up a detailed synopsis on the way Network Solutions seems to be taking advantage of the consumers who use their domain name look-up tool.
As we reported yesterday, Network Solutions has been in a lot of deep-water after many people discovered the company was guilty of "front-running"–the practice of registering a domain name after someone has checked on its availability.
After a fiery uproar, Network Solutions (NetSol) is backing down some from the recently instituted practice of automatically registering domains customers search for on the company's site. If available, NetSol would hold the domain for four days and sell it for $34.99.