Network Solutions is Being Sued

Network Solutions, the domain registration provider, is being sued by Chris McElroy. McElroy is seeking class action status in the case. The suit alleges that Network Solutions is domain tasting for the sole purpose of profiteering during the 4 wait period by filing for registration itself and then offering said domain for a fee to in the inquirer. –

According to the suit, as well as Network Solutions’ stated policies, customers searching for a .com domain on Network Solutions’ web site would find it held “on reserve” for a period of four days, after which it would be released back into the pool of available names. During this time, potential customers are unable to register the domain with a competing registrar – forcing them to pay Network Solutions’ higher-than-average registration fees or wait until the hold expires.

Network Solution calls its policy a “consumer protection measure,” and claims it is necessary to prevent customers from losing prospective domains to “front-runners,” who monitor domain search logs and quickly buy up searched domain names for themselves, hoping to sell them back to their original searchers.

Network Solutions’ reservation strategy, implemented early this year, makes use of an ICANN grace period that gives domain purchasers five days to seek a refund if they mistakenly register the wrong domain, like in the event of a typo. Unfortunately, the refund policy sees far more use in the hands of profiteers and domain poachers, who “taste” domains by buying them in bulk, sometimes millions at a time, gauging their ability to generate advertising revenue and then jettisoning the unprofitable ones for a refund.

Critics and industry observers were quick to blast Network Solutions’ “customer protection measure,” accusing the registrar of front-running and creating a temporary monopoly for itself. One such critic happened to no other than ICANN itself, who recently grilled Network Solutions at a meeting in New Delhi.

Its trick marketing and should be discouraged of course. But being smarter than the average bear I personally would use this knowledge in my favor. If I wanted to hold onto a domain I could write a script that triggers Network Solutions to register it. Then I would keep running that script as a cron job on a 5 day cycle. Most folks would pass on the domain thinking it was parked. Then when I was ready, stop the script wait 5 days then register it with my intended agent. Enough people do that and the value to Network Solutions would diminish. Sometime you just have to be a bit of a revolutionary to get change.

Linky.