Verisign Under Investigation for Domain Name Malpractices

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Verisign is the name that is expected to mean "Trust". It is the most common name noted for Digital Certificates and is the owner of the original domain name registrant Network Solutions Inc, which was once a monopoly domain name registrant.

At a time ICANN is threatening to ease out public participation in its management and centralize its Cyber Space control powers with a hand picked body of trusted lieutenants, the horror stories emanating about Verisign's malpractices in domain name registrations are very very disturbing.

From the many stories that are emanating, ICANN is accused of fraud and unfair business practice to protect its domain name registration business slipping out to its competitors. At a time when other registrars are charging less than US $10 per domain name per year, Verisign has priced its services at US $ 35 per year. It is therefore natural that consumers should be interested in leaving Verisign registry service and shifting it to others.

Instead of adopting consumer friendly pricing to win and retain customers, Verisign appears to be adopting a strategy of making difficult for people to transfer registrations out of their registry. One of the strategies they appear to be using is to deny registration requests either because they are too early or because they are too late. Secondly by sending a form for transfer which is often reported not received back.

One more strategy which is creating panic in India is that they are sending reminders to all domain name registrants through Net4india that renewal fees is not received and the domain name is likely to be deactivated. On enquiry with Net4india it is told that Verisign is billing them even for domains which are not renewed and accounting payments on first in first out basis so that Net4india is penalised for domain names not renewed.

A more probable reason beside this attitude is perhaps to scare the Indian registrants and make them feel insecure with Indian domain name registrars so that they can be persuaded to register the domain names directly with Verisign.

It is not therefore surprising that the Federal Trading Commission,(FTC), USA is conducting an enquiry about Verisign's  practices with regard to transferring Web addresses, deleting domain names and sending direct mail solicitations to customers of competitors.

FTC has sought complaints from public to be filed through e-mail  newcase.atr@usdoj.gov or online through the website https://rn.ftc.gov/dod/wsolcq$.startup?Z_ORG_CODE=PU01.

Indian domain name registrants should therefore exercise caution while dealing with Verisign and also take steps to lodge their complaints for whatever they are worth if they have direct dealings with Verisign registry services. If the attitude of Versign as indicated in the domain name registration service is any indication, Indian e-commerce companies should also exercise caution in using Verisign's services for digital certificates.

We hope that Verisign would soon realize the shortcomings in their anti consumer policies and take steps to re-establish their relationship with the Netizens by appropriate Netizen friendly attitude.

Naavi

August 12, 2002

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