Suggestions

TLDR

• Clearly label all domain types to avoid registrant confusion.
• Require registries to disclose relationships.
• Require the disclosure of a domain’s original and current fee class.
• Forbid the reclassification of standard domains.
• Introduce price controls for registry premium domains.
• Limit the number of premium fee classes to prevent tier bloat.
• Strengthen and clarify domain expiration policies.
• Standardize and centralize abuse handling policies.

Overview

The domain market has several characteristics that create imbalances of power and information, often to the detriment of registrants. The following suggestions are intended to promote a healthier, more transparent, and more competitive market that better serves all participants. These suggestions are based on the market distortions and risks identified throughout this site. Industry growth should come from selling a good product, not from price discrimination or dark patterns that exploit information imbalances.

Clear Labeling

Registrars often commingle different types of domains, making them appear equivalent when risks and registrant rights differ significantly. To help registrants make informed decisions, all domains should be clearly labeled at the point of sale.

The labels could be gTLD, ccTLD, 3rd Level, Premium, and Aftermarket. This simple change would immediately signal to a registrant that further research may be required.

Disclose Registry Relationships

Registries may operate as subsidiaries and it’s difficult for registrants to discover which entities have related ownership. This can leave registrants with the impression there are many distinct registry owners competing with each other even though those registries may share goals, strategies, pricing data, etc..

ICANN should require registries to disclose related ownership and that information should be published on ICANN’s list of registry operators (archived),

Disclose Fee Class

A domain’s fee class is a prominent mechanism for pricing, yet it is completely opaque to registrants. This opacity makes it impossible for registrants to verify that registries are adhering to their uniform pricing obligations.

• Registries should be required to provide both the original and current fee class of a domain via EPP.
• Registrars should be required to display this information to registrants.

Without proof of a domain’s original fee class, the uniform pricing protections of the base registry agreement may be unenforceable, especially after a domain is transferred.

Forbid Reclassification

ICANN should use its authority under Section 2.10c of the base registry agreement to prohibit the reclassification of a domain from a standard fee class to a non-standard fee class.

Reclassification is a discriminatory practice that targets valuable domains and undermines the very protections this section is meant to provide. Preserving a domain’s standard classification is vital for the ongoing enforcement of uniform pricing.

Premium Price Controls

Registry premium domains currently have no price protections, leaving registrants vulnerable to price discrimination in a captive renewal market. The discussion about price controls for premium domains should be re-opened. Potential controls could include:

• Capping annual renewal price increases to a fixed percentage.
• Tying the maximum renewal price to the initial registration price.
• Only allowing premium pricing for initial registrations and requiring uniform pricing for all renewals.

The last option is the easiest for registrants to understand and does not restrict registries from capturing a domain’s market value via the initial registration fee. These controls would provide predictability for registrants who invest in building a brand on a premium domain.

Limit Premium Tier Bloat

The unlimited number of premium tiers (fee classes) that registries can create encourages fee class bloat. This practice enables more granular price discrimination by splitting registrants into smaller cohorts and places an unreasonable burden on registrars who must manage these ever-changing lists.

ICANN should consider placing a reasonable limit on the number of non-standard fee classes a registry can maintain.

Strengthen Expiration Protections

The current Expired Registration Recovery Policy (ERRP) is ineffective. It contains loopholes that allow registrars to auction off expired domains during the auto-renew grace period, contrary to registrant expectations. The policy should be revised to provide a guaranteed, simple grace period where a registrant can recover their domain at the standard renewal price without risk of it being sold to a third party.

Standardize Abuse Handling

Abuse handling responsibilities are split between registrars and registries, leading to inconsistent and subjective enforcement. This can harm good-faith registrants while allowing bad actors to find lenient registrars and registries. A standardized, predictable, transparent, and centralized process for abuse handling would benefit the entire ecosystem. Importantly, it would also allow registrars to act as clear advocates for their customers. Due to fierce market competition, registrars are well-positioned to serve registrants, and their relationship would be more cooperative if they were not also tasked with policy enforcement.