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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 California.
"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.