Tucows discusses Network Solutions “customer protection measure” and front running.
It’s been a few days since news first broke about Network Solutions’ new practice of reserving any domain searched for on its site. A lot of industry observers have weighed in on the practice, but most registrars have been relatively quiet.
I talked with Tucows (AMEX:TCX, TSX:TC) President and CEO Elliot Noss today, and he’s not shy about his position.
“For me this is analogous to the approaches that a couple registrars have taken, such as Godaddy and Network Solutions, for transfer policy,” said Noss, referring to registrars taking initiatives to protect their customers that also benefit their business. Specifically, Noss is referring to those registrars’ practice of blocking transfers of domains within 60 days of changes to whois information. These registrars say they are blocking transfers to protect customers from domain theft, much like Network Solutions claims its new reservation policy protects customers from front running. Front running involves someone intercepting a domain name query and preemptively registering the domain.
“It’s violating the stated policy and then putting the burden on ICANN or other parties to prove that they’re wrong,” continues Noss. Tucows has also blogged about the topic on its official site.
Noss doesn’t believe that Network Solutions’ program is a solution to front running.
Noss said the basic driver to front running is internet service providers (ISPs) selling internet data. Using any site to check for a domain — be it Network Solutions, Tucows, etc. — exposes you to the potential of that query being stolen. When someone visits a web site or sends a request over the internet, that data can be captured by the ISP.
Suprisingly, it’s not just rogue ISPs that sell this data. “The larger [ISPs] are more likely to have this behavior,” says Noss. He points to Verizon capturing error traffic and serving ads on them as an example.
Registrar Register.com offers a service that lets users reserve domains for later registration using the 5 day grace period afforded to registrars. Noss says this may be fair as long as the company is explicit with its customers, and that’s part of the problem with Network Solutions’ practice.
“All of this stuff makes sense to you and me and doesn’t make sense to 99% of the population,” Noss told me. This is a valid point; registrars such as GoDaddy and Network Solutions deal with customers who don’t even know what “drop catching” and “parked page” mean.
Underlying the problem of front running is domain tasting, which allows front runners to test domains for 5 days without payment. If the domain gets enough traffic to justify the annual registration price, the domain taster keeps the domain. Otherwise he returns it for a refund from the registry.
But ICANN may also share in the blame for Network Solutions starting its “customer protection” program.
“This highlights that if ICANN is inactive and relies on studies and reports, that the market will keep evolving and evolving beyond it,” says Noss. “As an organization they need to step up and act.”
Indeed, it wasn’t until just a few days ago that ICANN released its initial report [pdf] on domain tasting.
Better late than never?
M. Menius says
Agree with Noss on his position against Network Solution’s front running and that ICANN need to step up and take a leadership role against it.
However, I disagree with his comparison of GoDaddy’s 60-day wait on transfers out with what Network Solutions is doing. Those are not parallel examples.
A. Nall says
“Suprisingly, it’s not just rouge ISPs that sell this data”
That should be “rogue ISPs”.
Andrew says
#2 Thanks, fixed
Andrew says
M. Menius – Perhaps I wasn’t clear. What Noss mean by being similar to the 60 day transfer policy is that the registrars are doing things advantageous for themselves in the name of “protecting consumers”.
Jason Lavigne says
“It’s been a few days since news first broke about Network Solutions’ new practice of reserving any domain searched for on its site.”
Just wanted to point out that this is technically not correct as they are only reserving .COM domains.
Andrew says
#5 – man everyone’s so nitpicky today 🙂
Thanks for pointing that out.
Marty Kilroy says
Just my luck that Network Solutions would implement this deplorable practice on the very day that they choose to steal WHOIS inquiries for themselves. Now I have to either buy the name I wanted from Network Solutions at an inflated price – and reward their evil behavior – or risk that others will snatch it up upon its supposed release.
I’ll take the risk – but I am furious.
ICANN needs to provide a WHOIS search that will not be subject to corporate theives.
Marty Kilroy says
Ok – I’m so furious that I can’t type a sentence.
Just my luck that Network Solutions would implement this deplorable practice on the very day that I utilize their “service.”
I had no idea that they could choose to steal WHOIS inquiries for themselves.
M.Menius says
“man everyone’s so nitpicky today” – LOL. I must say this is a great site. I check it everyday for industry news and smart commentary. DomainNameWire is excellent, Andrew. Doing a great job!
Stephen Douglas says
UNBELIEVABLE!
The absolute AUDACITY of Brian Noss to comment about NetSol’s deceitful practice three days after I posted on my blog a scathing account of TUCOWS subsidiary registrar, ITSYOURDOMAIN.COM (IYD) and their fraudulent practice of CHANGING your whois to their own “expiring account, SecureWhois, Inc.” information, SIX WEEKS before your domain expires.
Netsol’s frontrunning practice might be more “newsworthy” because of their size and brand recognition, but ITSYOURDOMAIN.COM owns 700,000 domains, which TUCOWS purchased in 2007, and they’re actually STEALING your domain’s whois registration BEFORE the domain expires. My article shows clear proof by way of screenshots of domains I own coming up for renewal, and the whois on those domains changed BEFORE EXPIRATION to reflect ownership by services owned by ITSYOURDOMAIN.COM. If that isn’t domain stealing, I don’t know what is.
What if you wanted to sell that domain 2 weeks before expiration? What if someone who wanted to buy that domain 3 weeks before expiration tried to contact you? If the domain is at IYD, you won’t be contacted. The buyer would be sent to IYD sales and you would never know about their interest in buying YOUR domain. IYD would know, though.
I note in my article that over 180,000 domains out of the 700,000 domains owned by IYD (TUCOWS) are in this status of being owned by “SecureWhois, Inc.”, according to domaintools.com. Look up who owns Securewhois.com.
The full article exposing TUCOWS to hijacking domain names BEFORE they expire is on my blog http://www.successclick.com.
The danger of this practice that TUCOWS is continuing with IYD is that they use Snapnames expiring domain auction processing, which means A LOT of IYD domains fall into Snapnames auctions. This is a cycle that many registrars like to perpetuate — making it hard to sell, transfer or renew domains that the registrar can just nab and send to auction to make that 80% sale price the domain auction site will give them. Trust me, a registrar can make about 4000% more in profit taking your domain away from you and selling it on an auction site than allowing you to renew or transfer it away. If you renewed it, they might make from $.50 – $3 a year on your domain. If they put it up for auction, they’ll make $40 MINIMUM. This is why a lot of low level registrars make it so hard to get auth codes, unlock your domain, get past “transfershields” with passwords you never set, etc.
Brian Noss should hide behind a tree and count his snowballs before he starts tossing any at Net Sol. In my review of IYD, it’s one of the worst registrars, besides 1and1.com, domainmonkey.com, 1dni.com and at least 10 others.
Registrars are the BACKBONE of the domain industry. Once any registrar is found out to be untrustworthy, and PROVEN to be fraudulent in their practices, they should get only one warning, and then ICANN takes away their license. I only can dream that will happen. I’m sick of dealing with domains I purchased from auction sites that are registered at lame-*ss registrars who are only “domain recyclers” at best.
Registrars that HAVEN’T raised my suspicions and have provided decent to great service and are reputable are Fabulous.com, Moniker.com, Enom.com, Godaddy.com (eh) and Rebel.com.
Stephen Douglas says
ehhh, I meant “Elliot Noss” not Brian Noss. My apologies to any Brian Noss’ out there.
Richard Pound says
Hey STUART DOUGLAS,
You’re a dope.
GTP says
GoDaddy.com Front-Running too!
I have been doing business with GoDaddy for years. As of yesterday, April 15, 2008 our business relationship is over. I had just finished a website and was now in the process of finding a good domain for it on GoDaddy. I came up with a very simple, short domain that said it all. http://www.ibuynsell.com “Nice don’t you think?” I was very excited to see that is was available. I tested a few others ideas that I liked and some where taken, some were not. I came up with three domain names that that were available. and proceeded to register them. When I attempted to register http://www.ibuynsell.com it was taken. I couldn’t believe it! I typed in the domain in the address bar and sure enough it was parked on GoDaddy’s website. Now it was only about 1hr and 45 minutes from when it was availibale to when it was taken. I work from home and got a call that I had to deal with, other wise I would have registered them immediately. This has never happen to me before. So I did a little research. I am not the only person this has happened to. Many other using GoDaddy to search for domain names have had the same expirence. You could say it was a fluke, I say GoDaddy is using unfair consumer techniques. Don’t believe me? Come up with a good domain name. Search it on GoDaddy. Wait an hour or then check it again. Boy will you be surprised as I was, how fast a good domain idea gets taken by GoDaddy. Search the web for “GoDaddy steals domain” You’ll see. This is no coincidence, This is an unfair practice by GoDaddy.com
Andrew says
@ GTP – this is likely just a coincidence. Did the other domains you searched for get registered?
The name of the registrant for ibuynsell.com looks like some average joe. I doubt there’s a conspiracy here. I’ve tested domains on GoDaddy before by searching for them. Some ended up being registered by various individuals, but most weren’t registered when I went to check again.
CB says
I got shafted at GoDaddy yesterday. I searched for a very obscure hyphenated name that would work well for my client but not for anyone else. A name that would make sense for his business but would make anyone else go “Huh?” I don’t get it. I called my client and told him to register it right away. As in “today”. Well he didn’t and by next morning it was snatched up by someone in Germany. Two things I concluded from this. Buy immediately and then worry about transferring it to my client later. Someone is monitoring domain queries on Godaddy and exploiting that info.
Shashi Bellamkonda says
I work at Network Solutions. We know how important this issue is for everyone, and not only did we listen, we’re acting.
Next week the ICANN membership can vote an important issue to resolve to resolve front running for once and for all. Network Solutions is advocating that ICANN acts now, and we have published an official statement on our web site to that end.
Please excuse this URL, but given the seriousness of this issue, it was appropriate to provide a link: http://tinyurl.com/63yaox . Any additional pressure or anything else other folks can do to resolve this matter would be very helpful
Shashi
Carle says
Here’s a letter I just sent to Network Solutions. They are an AWEFUL company to register domains through:
Wow! You guys do everything possible to keep clients from transferring to another registrar… EVERYTHING BUT THE RIGHT THING!
1. Price gouge; you price gouge on the renewal offering, and then only after a switch to another registrar is made do you offer a lower price that’s actually competitive.
2. You don’t honor the registrar change – and force the customer to call you. THEN YOUR SALES PEOPLE PUSH and PUSH to keep the customer. The customer would have stayed if you didn’t gouge (See #1 above)
3. YOUR SITE SUCKS. It’s one big upsell to other products and services. It’s not direct to fulfilling the immediate needs of the customers.
I’d recommend reviewing godaddy, tucows or hostgaotors offering / content presentation.
I used to tell everyone netsol was THE registrar… now I tell them to avoid you like the plague.
Please, change your ways… and show this to your upper management. They need to know how bad things are with your domain registration services.
– Carl Robbins