Godaddy Shenanigans! Corrupt And Unethical Auction Practice.

Compassion

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Has anyone else encountered shenanigans such as this?

I won an auction for an expired domain.
Paid for the domain.
A few days go by... then I get a refund!?!

I find that the whois for the domain shows TODAY May 15 registered with DYNADOT!??

The rep on the phone says that somehow the domain got redeemed in the 41 day window and transferred to dynadot THIS MORNING.

I'm being deflected to auctions @ godaddy to discuss this further.

Seems that the writing is on the walls here.

Godaddy is totally fine running corrupt auctions.

If I won a car in an auction, paid for it, then low and behold the old owner comes along and says they want it back - would the auctioneer give it back to them? NO!
 

jaydub

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This is how it works with GD.
Once 30 days (I believe) expiration goes by the only way you can get the name back with GD is to pay $80 redemption fee. I have been in this situation so transferring it within the 41 days is the only way I keep ownership without having to pay redemption.
I have had this happen several times buying at their auction. A little confusing but not unethical. It has been like this for years.
 

Compassion

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Not unethical?

This is a clear example of unethical business practice:

Unethical, adjective

def: not conforming to a high moral standard; morally unacceptable.

ex: Domain name registrar Godaddy auctions expired domain. High bidder wins and pays for domain. Godaddy unethically allows previous domain owner to circumvent completed auction and transfer the domain to Dynadot.
 

Jack Gordon

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They shouldn't have the right to auction something they don't have clear possession of. Have you read their TOS? Is this scenario covered explicitly, as something you agreed to in order to use their auction service?

Seems ripe for a legal challenge.
 

Biggie

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when Bob Parsons went elephant hunting


that, should have told you something then

;)

imo...
 

NameYourself

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This sounds like a loophole that needs to be accounted for one way or another. Either a name shouldn't be auctioned at all until that RGP period is completely closed, or if they must auction it during this time period where the old owner can still renew or transfer out, then the terms need to state that such a situation may occur and if it does that the name will not be awarded.

I know it seems frustrating, but Dynadot also has an even worse system for auctioning expired domains. Once you win a name there, the old owner still has at least a couple days where they can renew it, even after you paid. What's worse, is that the previous owner also gets a "delete" alert letting them know that it will be deleted within those couple days if not renewed at the normal registration fee. This delete notification is unique to domains that only have bidders who bid for and won a domain.. so obviously the old owner will know that someone else was willing to buy that name when it went to auction.. often this signals to them that it is worthy of renewal, since after all someone else wanted it too. This has happened a number of times to myself and others. It is confusing and many people have complained, but its just the way it works. If you want to take it beyond this, you would first need to become familiar in-depth with their auction terms and agreement as the person above mentioned.
 

katherine

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In the "good old days", before registrars started auctioning expired domains, expired domains just were allowed into redemption, then deleted and snapped. Of course, the disadvantages are that
a. the registrars are not making any money on a deleted domain that could otherwise have market value
b. it is expensive for the registrant to redeem a domain that is in registry redemption status.

I think that the biggest issue from an ethical POV, is that registrars are allowed to sell YOUR domains in the first place. They have an incentive that you lose your domain names. A renewal is just a few $ in their pockets. An aftermarket sale =$$$$$$
 

jaydub

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I do see your POV Compassion.

Katherine....but I wonder at what point is the domain not YOUR domain. It is entirely up to the registrar as to how long they allow after expiration before redemption (I believe).
And at redemption is it their name and they are giving you the option to redeem it?

If we believe the name is not theirs, but someone else's property, then by continuing to use their auction are we not supporting "unethical" practices?
I mean if someone sells us a TV that someone else owns we are supporting an illegal practice. And if we weren't there to buy it the market would die and cease to exist.

Not trying to ruffle anyone's feathers here just ...just playing a little devil's advocate.
 

katherine

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You are completely right. There is a possible conflict of interests. It's not new. I'm buying expired domains too, so not pointing the finger at anyone. It's not our fault if people abandon their domain or forget to renew in time. The practice is not illegal but raises a few ethical questions. Can your registrar be considered the trusted custodian of your valuable digital estate when they stand to make so much more money if you just vanished from the surface of the Earth ? :)
 

Shane

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How much did the domain go for? I've heard of people letting domains drop and if the auction goes high enough they redeem the domain to sell at that price.
 

Compassion

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The winning bid I made was just $12.

I remember reading a thread a long time ago that someone may have successfully been able to transfer a domain that was in redemption from GD to another registrar...This may have happened as the domain was in Dynadot the minute I received the refund.....

Or they paid the $20 - $160 to redeem it and somehow executed a transfer to Dynadot nearly instantaneously.

Yes apparently GD has structured their auctions so they can do this without repercussion (besides aggravating customers and encouraging them to not use them)

Not ethical truly...I'm not aware of any other auction house doing this??!!??
 

amplify

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Hate it, but that's their business model. I just hate having a thousand+ tied up at GD, only to be refunded. This is due to the fact that you have to pay for the domain I believe almost immediately if I'm not mistaken, but it's not yours for 7 days after the end of the auction. After 7 days, it could turn into a refund which takes 7+ more days. All the while, gems are passing by that could be mine, but all capital is tapped out and being held.
 

Kazzia

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Seems "odd" that a registrar can sell something that is not theirs and keep all the money (not giving any to the previous owner), and that they auction something that can be taken away from the buyer. Just "won" DigitalCableTelevision.com, but taken away from me today (with a refund).
 

amplify

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Seems "odd" that a registrar can sell something that is not theirs and keep all the money (not giving any to the previous owner), and that they auction something that can be taken away from the buyer. Just "won" DigitalCableTelevision.com, but taken away from me today (with a refund).
Yeah, if you read the post above ^ (me) you will see that this is their business practice. I just wish you could leverage funds given to them to bid on other names, cause a lot of times the good ones are renewed.
 
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