New Domain Name Practice Criticized

Thu Jan 10, 2008 6:19 PM EST

NEW YORK — A company that sells Internet domain names is facing criticisms for holding some in reserve as a consumer-protection measure, a move that also prevents interested parties from shopping around for better prices.

After weeks of testing, Network Solutions LLC began this week to grab names that people search for on its Web site but don't immediately register.

The name is locked up for about four days, during which the person who made the search can buy it directly from the company for $35 a year — a few times more than what many of its rivals charge. After that, the name returns to the pool and can be registered by anyone through any registration company.

Spokeswoman Susan Wade said Network Solutions was trying to combat domain name front running — the use of insider information to snatch desired domain names before an individual or business can register them.

But what it's doing shares similarities with the practice the company says it is trying to prevent, which the Internet's oversight agency for domain names already is investigating.

One blogger termed Network Solutions' action "deplorable."

"They actually think they are doing customers favors with this little dirty trick," wrote Jay Westerdal, president of Name Intelligence Inc., which analyzes domain name patterns. "These guys are clueless!"

Wade said the company was making adjustments in response to feedback but considered its measure a benefit for customers — by preventing domain name speculators and others with questionable intentions from grabbing the name first.

"We are not front running," she said. "We are not monetizing the page. We have no intent in keeping it. We have no intent in selling it in secondary markets at inflated prices — that is front running."

In October, the Security and Stability Advisory Committee of the Internet Corporation for Assigned Names and Numbers launched a probe into domain name front running and likened it to a stock broker buying or selling shares ahead of a client's trade, in anticipation of a movement in price.

The committee said the practice isn't necessarily prohibited under current regulations but could dampen the domain name industry's image within the Internet community.

8 Votes
Enjoy this article? Help vote it up the 'Vine.

Published to:

Anick Jesdanun's Column, All of Newsvine
Groups: none
Regions: New York

Public Discussion (4)

What's this?

Who's leading the conversation?

This visualization below allows you to see the impact that each user has on the current conversation. The top row contains the group of users who have had the most impact, the 2nd row the group of users who have had the 2nd most impact (et cetera). Users with similar impact are grouped together, and the average score of the group is shown to the left of the group. The author of the article is also shown on the left, in their corresponding group. Each user's score is based on the number of comments the user has made plus the number of votes their comments have received. The scores are calculated relative one another, so while their absolute value is not particularly important, their relative difference does indicate a larger difference in impact on the conversation.

3.3

0.5

{"commentId":1351000,"authorDomain":"wibs"}

wibs

We have no intent in selling it in secondary markets at inflated prices

Right - but they do intend to sell at inflated prices in their own market!

{"commentId":1351000,"threadId":"201160","contentId":"1218320","authorDomain":"wibs"}

3 votes

#1 - Thu Jan 10, 2008 11:05 PM EST

{"commentId":1351342,"authorDomain":"dungbeetlemania"}

dungbeetlemania

The problem with business (the whole world?) is that it confuses law with ethics. It may not be illegal, but it is clearly unethical.

{"commentId":1351342,"threadId":"201160","contentId":"1218320","authorDomain":"dungbeetlemania"}

1 vote

#1.1 - Fri Jan 11, 2008 2:13 AM EST

{"commentId":1351954,"authorDomain":"gregjarvis"}

gregjarvis

Boycott them. There are plenty of other places to do business with.

{"commentId":1351954,"threadId":"201160","contentId":"1218320","authorDomain":"gregjarvis"}

#2 - Fri Jan 11, 2008 9:55 AM EST

{"commentId":1352143,"authorDomain":"bondibox"}

bondibox

I have long suspected that unscrupulous vendors were or would be doing this. It's like when you find a good item on eBay, do you risk getting a second opinion? I think nondisclosure is implicit in both these situations.

And I don't see how Network Solutions locking down a domain so that only they can sell it would prevent someone else from snatching my desired domain.

{"commentId":1352143,"threadId":"201160","contentId":"1218320","authorDomain":"bondibox"}

#3 - Fri Jan 11, 2008 10:44 AM EST

{"canLink":false,"threadId":"201160","isPrivate":false}

Is Network Solutions Snatching Domain Names?	eweek.com	Thu Jan 10	0
Domain Resitrar NSI Registers Every Domain Checked	KRich	Wed Jan 9	2
The Importance Of Owning Your-Own-Name.Com	Derek I	Fri Jan 11	0
Network Solutions Slammed for New Domain Policy	newsfactor.com	Fri Jan 11	0
Web Authority Fights Naming Loophole	Associated Press	Wed Jan 9	0

Backyard

New Domain Name Practice Criticized

Published to:

FUN STUFF:

COMPANY STUFF:

LEGAL STUFF: