- Impact
- 0
I recently found a domain listed on Sedo I wanted to add to my portfolio. It was not listed under their auction category. I was willing to meet the buyer's asking price without further negotiation and offered full price. Within a few hours I received and email from Sedo stating the owner was now switching to an auction format and that my offer met his previously unmentioned reserve. Sedo id domiciled in the US in the State of Massachusetts. Under their user agreement all business in the US is conducted under the laws of the State of Massachusetts. The following is one of the regulations administered by the Massachusetts Attorney General. From CMR 940 3.13 : (2)
“(2) Deceptive Pricing. No claim or representation shall be made which represents or implies, in advertising or otherwise, that a product or service may be purchased for a specified price when such is not the case; or that a product or service is being offered for sale at a reduced price when such is not the case; or that such special or reduced price is to be in effect for a limited time only when such is not the case; or otherwise deceives purchasers or prospective purchasers with respect to the price of products or services offered for sale.”
After this happened I read the information provided to buyers and the information provided to sellers. Sellers are told they can switch to an auction format after receiving any offer even a full price offer. Buyers are led to believe a full price offer would result in a sale which if I remember business law 101 correctly is the way it is supposed to work. In fact if I recall correctly failing to fulfill a contract it is actionable. A contract is supposed to exist after a buyer responds to an offer with ernest money. Since Sedo had prescreened my ability to buy and had registered my credit card number in thier system that should constitute ernest money. I have bought a lot of domains from a lot of different vendors but never Sedo. All honored the agreed upon price when either I paid full price or negotiated for a lower price. Sedo apparently operates under a different ethical and business model.
I will be contacting an attorney in Massachusetts on Monday to explore possible litigation. Has anyone else had this happen? If so a class action might be formed whch would have an excellent chance of getting Sedo's attention since obviously they have no problem with sellers offering a domain for sale and then switching the terms and conditions once a full price offer has been made. In fact Sedo appears to encourage the practice.
“(2) Deceptive Pricing. No claim or representation shall be made which represents or implies, in advertising or otherwise, that a product or service may be purchased for a specified price when such is not the case; or that a product or service is being offered for sale at a reduced price when such is not the case; or that such special or reduced price is to be in effect for a limited time only when such is not the case; or otherwise deceives purchasers or prospective purchasers with respect to the price of products or services offered for sale.”
After this happened I read the information provided to buyers and the information provided to sellers. Sellers are told they can switch to an auction format after receiving any offer even a full price offer. Buyers are led to believe a full price offer would result in a sale which if I remember business law 101 correctly is the way it is supposed to work. In fact if I recall correctly failing to fulfill a contract it is actionable. A contract is supposed to exist after a buyer responds to an offer with ernest money. Since Sedo had prescreened my ability to buy and had registered my credit card number in thier system that should constitute ernest money. I have bought a lot of domains from a lot of different vendors but never Sedo. All honored the agreed upon price when either I paid full price or negotiated for a lower price. Sedo apparently operates under a different ethical and business model.
I will be contacting an attorney in Massachusetts on Monday to explore possible litigation. Has anyone else had this happen? If so a class action might be formed whch would have an excellent chance of getting Sedo's attention since obviously they have no problem with sellers offering a domain for sale and then switching the terms and conditions once a full price offer has been made. In fact Sedo appears to encourage the practice.
Last edited:
