LOS ANGELES - A federal class-action lawsuit was filed Monday against Network Solutions for allegedly forcing millions of people to buy Internet domain names from the company instead of from cheaper competitors.
The alleged scheme has netted the company millions of
dollars, said the law firm Kabateck Brown Kellner.
The suit, which was filed in U.S. District Court, Central District of
California, also names ICANN for having policies that facilitate the alleged scheme.
"Imagine if you asked a car dealer if they had a black convertible and
were then forced to buy the car from them," said Brian Kabateck, lead counsel
in the suit and the managing partner of Kabateck Brown Kellner. "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."
The suit claims that whenever someone searches for the availability of a domain
name through Network Solutions' website, the company immediately registers the
name for itself, thus preventing other companies from selling it and forcing consumers
to pay Network Solutions' expensive fees.
If a consumer were to go to another site where it would be cheaper to register
the domain name, the name would be "unavailable," the suit claims, adding that
consumers are never informed that inquiring about a name's availability through
Network Solutions results in the company holding a monopoly on selling the
name.
Network Solutions reportedly charged $34.99 to register a name sought by the
lead plaintiff in the suit. A competitor would have charged $9.99, the suit
claims.
The suit claims that ICANN makes Network Solutions' alleged scheme possible by
allowing companies that sell domain names to avoid paying registration fees for
names cancelled within five days. The plaintiffs say this allows Network
Solutions to defraud customers at no cost to itself.
ICANN, based in Marina Del
Rey, Calif.,
is the international organization that regulates domain names and other
Internet protocols.
