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ICANN Sets Limits On Domain Refunds

Another swipe at domain tasting

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ICANN has put the final nail in the coffin of domain tasting by imposing limits on the number of domains registrars can return within the five-day grace period.

Registrars will only be able to return ten percent of registered domains or fifty, whichever is greater, per month within the five day grace period for a full refund. A registrar purchasing 1,000 domains at $6 a piece, then, would only be allowed to return 100 of them in a month and would receive a maximum $600 refund.
ICANN Sets Limits On Domain Refunds
Earlier this year, ICANN imposed a 20-cent transaction fee for returned domains to curb the practice of domain speculators registering mass numbers of domains and “tasting” them for four days to see if they would turn a profit from advertising clicks. If not, the domains were returned on day five for a full refund.

Gaming the system like this caused a large number of domains to be unavailable in perpetuity and deprived ICANN of registration fees. If ICANN is anything, it’s thorough, public, deliberate, and slow. Public debates/inquiries about the subject were held a year ago, first resulting in the transaction fee this summer, and now limits on registrar refunds.

 Registrars will be expected to be in compliance with the new policy by the end of March 2009, and are offered a special exemption process if they exceed the limits. ICANN will review the exemption applications and judge accordingly whether the registrar will be refunded beyond the 10 percent.
 

ICANN Sets Limits On Domain Refunds
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  • http://www.doggybehave.com/train-your-dog-to-obey-down-command.php Sam Nichols

    Finnaly they did something about this!
    I am so pissed off when I see great domain parked..maybe this will slow down this practice

  • http://www.sinohosting.net/web-hosting.php China Web Hosting

    I don’t see any influence on domain parking, as these are two very separate groups. Companies/individuals investing in domain names and parking them for future reselling do not ask for them to be refunded. They pay the full price and expect to hold onto them for years if needed until a buyer is found that can pay the right price. Domain tasters on the other hand just register it for a few days, put ads on it, and before the 5 day period is over return it. It is a huge number game, but it seems now that the ICANN is taking the right measures to curb on this.

  • http://www.doggybehave.com/socializing.php Sam Nichols

    I dont see why you should even be able to be get refund for the domains you purchased, you cant just buy it and its not selling, then get a refund for it.

  • http://bubblecrush.org Kisty

    I have a question.

    Supposedly, there is this domain that I wasn’t supposed to renew. I thought the auto-renew was off by December 2008 but when March 2009 arrived, they still sent me an invoice. I asked 1&1 (the Domain Registrar) regarding this and they gave me another set of instructions on how to remove the domain on the system. I thought by then, I won’t be debited. Now, they’re still charging me. :( I emailed them too many times and they only replied once, telling me that the domain is not refundable.

    Personally, I find it unfair because it wasn’t my fault that their site wasn’t user friendly. I mean, I thought I already turned the auto-renewal off when I followed the email they sent me last December. :| Then I followed the new email before the payment was even sent. :(

    What shall I do?

    • http://www.videoconverterosx.net Video Converter OS X

      Their UI did not fit our use.