January 9, 2008 — (WEB HOST INDUSTRY REVIEW) — Web hosting provider Network Solutions (networksolutions.com) says it isn’t “front-running” domain names, contrary to reports that claim otherwise, and that the practice that triggered the accusation is actually an attempt to counteract front-running from external threats.
Front-running occurs when a company or individual registers a domain immediately after a prospective buyer searches to see if it’s available, which gives the registrar an advantage because he can then prevent the customer from purchasing through a competing registrar and sell it at an inflated price.
Reports of Network Solutions’ actions surfaced on Tuesday when discussions began popping up on various discussion boards on Slashdot, DomainNameNews and DomainState and customers and readers alike commented on the questionable practice.
In a statement released by the company, Jonathon Nevett, VP of policy at Network Solutions says that what it is doing is a pre-emptive security measure to protect customers from domain tasters and that Network Solutions is providing them the, “opportunity to register domains they have previously searched for without the fear that the name will already be taken through front-running.”
According to reports, ICANN has been contacted with concerns about this issue but says that although it believes what Network Solutions is doing to be an unethical business practice, it is legal for the company to monitor and collect WHOIS information from different domain names and either sell it or use it directly.
Network Solutions also recently began offering affordable VPS packages.
