advice Pay per click ads at expired domains

Catch.Club Catch.Club

Many registrars just after expiration of names put their DNS and a landing page appears with pay per click ads.

Think of this scenario:

Name is 3 or 4 L, registered for a specific project that fits acronym, but there are also many other possible acronyms
with these letters. Usually also some companies may use the acronym.
If there is a company for example that sell shoes and use the acronym and ads appear
for rivals who sell shoes is not it an infringement?

So my question is, if someone has legal knowledge about it.
Is it legal for registrars to put ads at expired names of all customers without authorization?
And if they are, as after expiration they have control of name, if a legal case occurs about the ads are they responsible exclusively for it and not the customer?

Most investors do not renew all names every year, or do not renew in time as can do in 40 days, so why to have this risk for 40 days if will decide to not renew?

Thanks in advance
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Thanks for the very useful information about using the ads at the expired domain, I didn't know about this before that would be really good ..