Verisign's Network Solutions settles FTC charges, faces lawsuits

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Washington, D.C.--Verisign Co.'s Network Solutions on Wednesday settled Federal Trade Commission charges of deceptive marketing practices.

The FTC alleged that Network Solutions tricked Internet users into transferring domain names to the company. The settlement bars Network Solutions from misrepresenting the status of domain names to customers.

Meanwhile, the company, which provides most U.S. .com and .net domain name registrations, in the past few days has faced new complaints from competitors, two of which have filed lawsuits based on advertising promotions Network Solutions began running last week. GoDaddy Software, Scottsdale, Ariz., and Popular Enterprises, Orlando, Fla., allege Network Solutions engaged in unfair competition practices.

The Internet Corp. for Assigned Names and Numbers (ICANN), a non-profit organization that oversees domain name management, this week asked Verisign to voluntarily suspend its new Site Finder promotion, saying among other things that it "substantially interferes" with anti-spam services' ability to identify forged e-mail. Verisign has not complied with the request.

--Carol Krol

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