Network Solutions Sued Over Million Dollar Money-Making Scheme
By Dee Chisamera
15:42, February 26th 2008
61 votes
Vote this story
Network Solutions Sued Over Million Dollar Money-Making Scheme

Network Solutions LLC has been sued on Monday by and LA firm, claiming the Herndon-based company obtained millions of dollars through a money-making scheme that forced users to buy domain names from them. The lawsuit also included ICANN (Internet Corporation for Assigned Names and Numbers), who is accused of associating and facilitating the scheme.

The company that once had monopoly on the domain market charges over 4 times more for a domain, compared to its competitors, and found a new modality to keep earnings high, despite that: every time a user searched for a domain name on the site, Network Solutions registered the domain, which gave the buyer two alternatives: either give up the domain or buy it from Network Solutions for $35/year.

According to the lawsuit filed in U.S. District Court, Central District of California by Kabateck Brown Kellner, “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.”

Network Solutions adopted such a policy in January this year, forcing customers to pay more or not buy the domain they were interested in. In other words, the company automatically reserved the searched domain for itself for four days, stopping competition from buying it and forcing the buyer, which was very likely to accept the deal within those four days, to pay $35/year instead of $8/year- the price of the competition.

Up until this point, 72,000 domains have been bought through this method: “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,” Kabateck Brown Kellner said.

Kabateck Brown Keller LLP is one of U.S.’ foremost consumer class actions law firms and recovered over $500 million for their clients, and its lawsuits, whether finished or pending, involved names such as Coca Cola, Google, Yahoo, Epson and others.



© 2007 - 2008 - eFluxMedia
dotclear

Other News in

Report: Yahoo negotiating to buy AOL

New York - Troubled US web portal firm Yahoo! is in negotiations to buy Time Warner Inc.'s AOL business, the financial news agency Bloomberg reported on Thursday. Yahoo!, which earlier in the week...

BlackBerry Storm Could See Shortage at Launch

BlackBerry Storm Could See Shortage at Launch

Due to a flaw discovered at the last minute, Verizon’s up and coming BlackBerry Storm may fall short in numbers, said an insider to press. A security problem was discovered by RIM at the last...

NASA Successfully Tests Internet DTN Protocol In Deep Space

NASA Successfully Tests Internet DTN Protocol In Deep Space

NASA has taken the next step toward establishing an interplanetary Internet connection, after successfully testing the first deep space communications network with the help of a ship 20,000 miles...

Microsoft Swears Morro Will Not Undermine Symantec, McAfee

Microsoft Swears Morro Will Not Undermine Symantec, McAfee

Microsoft announced this week that starting next year, users will benefit from a new security service, dubbed Morro, which will be free of charge. Furthermore, the company also said it will...

L.A.: Jury Looking at First Testimonies in MySpace Suicide Case

L.A.: Jury Looking at First Testimonies in MySpace Suicide Case

It was an overwhelming day for the friends and family of Megan Meier, as Lori Drew, the 49-year-old woman thought to be responsible for the teenager’s suicide, testified in a Los Angeles courtroom....

dotclear
Latest videos in Technology
Yahoo CEO to resign
A 'social mobile' for the...
Latvia's little secret spy...
Iran test-fires new missile.
Shades of gray over "white...

dotclear
Technology You are here: Technology
» Technology   » Gadgets   » Video Games   
E-mail To A Friend Print RSS Text size: Decrease font size Increase font size
dotclear
dotclear
dotclear
Most Popular in Technology
Microsoft Dropped Vista Requirements Under PressureMicrosoft Dropped Vista Requirements Under Pressure

» read full story
dotclear

Interested In This Topic?

News Alert will keep you informed. Find out more.
dotclear
Photos Gallery
dotclear
Today's Latest News
California Supreme Court Agrees to Rule on Proposition 8 LegalityCalifornia Supreme Court Agrees to Rule on Proposition 8 Legality

» read full story
dotclear