LOS ANGELES, Feb. 25 /PRNewswire/ -- 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
"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," said
Brian Kabateck, lead counsel in the class action and Kabateck Brown
Kellner's Managing Partner.
Whenever someone searches for the availability of a domain name through
Network Solutions' website, the company immediately registers the name for
itself, preventing other companies from selling it and forcing consumers to
pay Network Solutions' expensive fees.
If a consumer were to go to another, cheaper site to register the name,
they would find the name is "unavailable." Consumers are never informed
that inquiring as to a name's availability through Network Solutions
results in the company holding a monopoly on selling that name.
This allows Network Solutions to continue charging substantially higher
prices for domain name registration. Network Solutions charged $34.99 to
register the name sought by this suit's lead plaintiff. A competitor would
have charged $9.99.
Network Solutions' scheme is made possible by ICANN. ICANN allows
companies that sell domain names to avoid paying registration fees for
names cancelled within five days. Thus, Network Solutions can defraud
customers at no cost to itself.
ICANN is aware that Network Solutions is abusing this policy and yet
continues to facilitate its actions.
ICANN is the international organization, headquartered in Marina Del
Rey, CA, that regulates domain names and other Internet protocols.
Kabateck Brown Kellner is one of the nation's foremost consumer law
firms. Its clients have won more than $750 million against Google, Yahoo!,
Farmer's Insurance, Eli Lilly and others. As a plaintiff's-only firm,
Kabateck Brown Kellner is always on the consumers' side.
SOURCE Kabateck Brown Kellner, LLP