The Federal Trade Commission has said that the expansion of domain names could be a ‘disaster’.
Following just days after the expansion came under fire in the US congress.
The Internet Corporation for Assigned Names and Numbers (ICANN) will start accepting applications in the New Year for top-level domains (gTLDs).
Hundreds of brand new gTLDs will be created allowing organisations such as Apple and BMW to request domain names ending in .apple or .bmw.
The expansion plan has been called ‘unnecessary’ and confusing for internet users, by Esther Dyson, the former ICANN chairman.
Dyson has not been shy in voicing her opinion against the expansion, adding that she hopes the plans will be ‘reconsidered’.
And she is not alone, Daniel Jaffe, Executive Vice President of the Association of National Advertisers, said ICANN’s expansion is ‘fundamentally flawed.’
‘Companies are going to have to buy their name back to protect themselves,’ Jaffe said. ‘Even big companies will be facing very large expenses.’
A fee of $185,00 will be charged per application, more than many organisations can afford in these tough economic times – especially non-profit organisations.
There are worries that the gTLD program will increase the risk of fraud and trademark infringement by increasing the cost involved with protecting against illegal activities.