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FTC Chairman: Free-for-all on domain names could be disastrous
Federal Trade Commission Chairman Jon Leibowitz slammed a proposal to allow for hundreds of new Web domain endings at a congressional hearing on Wednesday, saying the plan has the "potential to be a disaster.”
The Internet Corporation for Assigned Names and Numbers (ICANN), the nonprofit that manages the Web's naming system, approved a plan in June to allow for new top-level domain names in addition to traditional domains such as “.com” or “.org.” Beginning in 2012, organizations can register new addresses ending in almost any word or phrase.
But in an interview with The Hill, Leibowitz said the new rules will be a headache for his agency and other law enforcement officials.
The FTC is tasked with protecting consumers.
Business groups are allied against the changes, arguing they will have to spend millions of dollars buying up new domain names to protect their brands.
"We're very concerned that the costs will be significant to consumers and businesses," Leibowtiz said.
Brad White, a spokesman for ICANN, said the plan already includes safeguards to prevent groups from registering fake domains.
"We appreciate the concerns raised by Chairman Leibowitz," White said. "ICANN has already committed to vigilantly monitor for abuses to the new [generic top-level domain] program. If and when any program abuses arise, there are mechanisms in place to address them."
But Leibowitz said he does not believe ICANN's program will be able to prevent scammers from ripping off consumers
"We don't believe the protections are adequate. We think there's too much uncertainty, but we will certainly be willing and expect sit down with ICANN and hear them out," he said.
On Thursday, the Senate Commerce, Science and Transportation Committee will hold a hearing on Thursday to examine ICANN's plan.
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