NameJet Problems

[dbdomains]

I recently bid on a pre-release domain that went into auction. It had been in auction for about a day and had 23 bidders on it. I happened to be winning the auction. Then, today, without warning, the domain was taken out of auction and put on my "wishlist".

Isn't that fraud? My understanding is that when the domain is caught and goes to auction, the backorders automatically become auction bids. If that is the case, how can NameJet cancel an auction without informing those, who in good faith, have bid on a domain? Did they not really catch the drop? If so, they are selling something they don't have control of.

I understand a registrar pulling a domain out of pre-release and "buying" it themselves. But it is really shady to pull it out of an auction with bids on it.

Anyone else have a similar experience?

 

[DU]

The owner can still renew it. In fact they can still renew it for almost a month after you have WON the auction.

I like how people bid on things on a platform without reading the Terms and then get upset when something that is specifically covered by those terms happens?

"Warning: This Coffee is Hot!"

 

[dbdomains]

Please show me in the T&C or FAQ where it says that a domain that goes to auction can be taken out of auction. All I can find in the FAQ, etc, is that when a domain becomes available, i.e. NameJet catches it upon expiration and drop, then it goes to auction.

 

[DU]

Please show me in the T&C or FAQ where it says that a domain that goes to auction can be taken out of auction. All I can find in the FAQ, etc, is that when a domain becomes available, i.e. NameJet catches it upon expiration and drop, then it goes to auction.

Did a quick scan and couldn't find any evidence of it, funnily enough.

I could also not find any evidence that describes what "winning an auction" means.

There are many implied references - even the name pre-release indicates "pre-release: which would make you wonder. Also some text that says "when it becomes available

I don't use Namejet so I"m not going to search too hard - but a cursory reading shows I may have assumed too much. My apologies...

Edit:
Assumed too much about how willing a shady company is to reveal its shady practices, I mean - not about the renewal. There are also a number of cases of "partners" noticing bids and then "not hoarding" them in a non-shady practices kind of way, *cough* name.com.

 

[Name Trader]

My understanding is that when the domain is caught and goes to auction, the backorders automatically become auction bids.

A pre-release domain is not an expired domain name which has been caught. It's still registered to the original registrant and can still be renewed by them. It's the risk you have to accept when bidding on pre-release domains. I haven't looked at the ToS, but I'm sure that would be covered in their ToS.

 

[dbdomains]

No worries defaultuser! I just couldn't find anywhere that it was clearly stated.


So, stub, are you saying that when you win an auction for a pre-release domain, that really what one is winning is the right to pay the winning amount if the registrar/partner wants to let it go?

If that is the case, then shouldn't NameJet leave the money in my account until the domain is actually mine? I mean, let's say they have 10000 domains that are sold in any given week and if the average price is $100, then they make $1,000,000. They take all of that money. The "buyer/auction winner" won't really do much with the domain, just in case they lose it (why go to all the effort of building a site and enhanced value on a domain if a registrar can capriciously take it back?) I mean, the domain is on auction lock for 42 - 90 days. Imagine the float on that $1,000,000 per week. Let's say some of the most valuable names get taken back. I am sure that the money that was spent by bidders and taken by NameJet would be given back - but WITHOUT INTEREST. So Fabulous and NameJet for instance, by virtue of their partnership, get my money to use (a portion of it, anyway), they earn interest, or at least get an interest free loan until they decide they want to honor my purchase. Meanwhile, they can continue to market a name they previously sold to me to find a higher price.

That is plain old-fashioned double-dealing.

Anyone from NameJet or one of the partners, or registrars care to comment on this? Domain attorneys?

 

[dbdomains]

yeah - so as expected NameJet canceled two other auctions I won and paid for and two additional auctions I was winning.

The sent me an email with a link to their T&C which says that the bidder is bound, but NameJet can, at its sole discretion, cancel the auction anytime they want, including after you've already paid for the item.

Then in the next section, the say how if you receive a bid that meets the terms of the auction, you are bound to sell it.

In the email I got, they tried to blame the registrar for canceling the auction although, their T&C clearly state that only they, at their discretion, can cancel the auction.

What a sham.

 

[Dave_Z]

A pre-release domain is not an expired domain name which has been caught.

http://www.namejet.com/Pages/FAQ.aspx#prerelease

What is a Pre-Release name?

Pre-Release domain names are expired names provided through exclusive partnerships with some of the largest and oldest domain name registrars in the industry.

Please show me in the T&C or FAQ where it says that a domain that goes to auction can be taken out of auction.

http://www.namejet.com/Pages/terms.aspx?page=NameJet Terms of Use

4. Bidding and Buying.

You also agree that NameJet shall have the right in its sole discretion to suspend or cancel any auction (Public or Private) prior to commencement of, during, or after completion of, the auction.

Sure would be nice if NameJet at least notified users why it did that, especially if the last registrant renewed it. As defaultuser said, there's a "clawback" period where a domain name won via an auction can still be taken from you if renewed by its last owner.

Assuming, of course, that's indeed what happened. That's the most common scenario, though.

 

[DU]

I knew it was there somewhere, I just didn't feel like looking too hard.

I can't imagine any other business operating like this. I'm pretty sure that Mecum or Barret-Jackson would go broke ...

What is "normal" practice is shady. When I read about the other things that go on, it makes me cringe. I don't use NJ or Snapnames (with one exception ). If the name is interesting I just contact the owner outside of NJ and see if they will recover and sell which probably annoys everyone else when they just renew it.

 

[Dave_Z]

I can't imagine any other business operating like this. I'm pretty sure that Mecum or Barret-Jackson would go broke ...

One thing to remember is that domain names aren't like tangible items, in the sense that very few (if any) will want to claim them back if ever they're auctioned off without their knowledge and/or say-so. The "nature" of domain name possession make them easier to resolve in case problems occur.

I'm not sure how to say this exactly, but I figure that registrars are "better ensured" of paying customers with many registrations who are helped with their domain lapses over those trying to acquire them via auctions. Something like that.

 

[DU]

One thing to remember is that domain names aren't like tangible items, in the sense that very few (if any) will want to claim them back if ever they're auctioned off without their knowledge and/or say-so. The "nature" of domain name possession make them easier to resolve in case problems occur.

I often find it amusing that domainers on the one hand want their domains to be treated like tangible property with the protections afforded them as such... and then also understand that they aren't tangible .. and so this kind of 'shady activity during redemption/grace/extended grace' by registrars is acceptable.

This isn't a dig at you. You understand things better than most.

I'm quite simply of the belief that registrars operate with too many conflicts of interest in an unregulated market. Regulation would yield many more problems but that's another discussion.

I'm not sure how to say this exactly, but I figure that registrars are "better ensured" of paying customers with many registrations who are helped with their domain lapses over those trying to acquire them via auctions. Something like that.

If this was what was always going on. Most real auction houses have a concept of a reserve as a protection... with the ability to remove the reserve. I've yet to see Mecum pull a car because .. pick one

• we've changed our mind
• owner decided not to sell, after all
• we didn't realize it was this valuable, so we're actually just going to hold on to it
• we were getting an appraisal...
• and my favorite...we don't actually own this car we're selling but we'd certainly like to make sure you can loan as a short term cash loan

I don't use Namejet and I'm banned anyway