I think ICANN has gotten so used to doing nothing when problems rear their head because some within the organization feel there is no consequence to 'doing nothing'. That has created a culture of benign neglect relating to registrant's rights which is thoroughly unhealthy. We have some very dedicated, tenacious, disenfranchised members in the Internet Commerce Association who will work to change that culture in the years ahead... Let me share with you today's article from Warren's Washington Internet Daily:
Domain name registrar RegisterFly, whose ICANN accreditation is under threat, apologized over the weekend for the behavior of its formerCEO and said it will work hard to win back customers. In a late Fri. posting on gripe-site Registerflies.com, Pres. John Naruszewicz detailed the firm's problems with Kevin Medina and said he's assembling a "dream team" to improve services that had degenerated so far that ICANN stepped in. But a domain owners group said the meltdown could leave thousands of registrants stranded without clear recourse.
After months of burgeoning complaints, including from ICANN directors and the U.S. Dept. of Commerce, ICANN notified RegisterFly Feb. 21 either to clean up its act within 15 working days or face loss of accreditation. The 10-page letter lists consensus policy, documentation and accreditation fee breaches.
Among other things, ICANN accused the registrar and reseller of:
(1) Withholding approval from or blocking requested transfers of domains to other registrars.
(2) Failing to renew customer names.
(3) Customer service and billing errors.
(4) Nonpayment of fees owed to ICANN.
Registerfly officials met with ICANN staff during last Nov.'s meeting in Sao Paolo, Brazil, but the complaints continued, ICANN said. The most common concern was that transactions customers were billed and paid for weren't being implemented at the registry level. Moreover, Registerfly was failing to respond to its customers, prompting several to launch Registerflies.com with the motto: "Your [RegisterFly's] customers have been talking... but you haven't been listening." ICANN also confronted the registrar with evidence it was underfunding registry accounts used for processing domain name transfers into RegisterFly. A civil case filed in Jan. by parent UnifiedNames against Medina alleged that 75,000 registrations were lost due to the registrar's failure to fund its accounts with registries and eNom, for which it resold names. Citing RegisterFly's "pattern of neglect of its obligations," ICANN ordered the registrar immediately to cure its breaches of its agreement and to "become more responsive and cooperative" in the future.
The loss of a domain name through the malfeasance of an ICANN-accredited registrar can devastate a registrant, the Internet Commerce Assn. (ICA) said in a Feb. 21 letter to ICANN Pres. Paul Twomey. "Losing a single domain name can destroy a small business that has created a thriving website," a problem magnified may times for professional owners of domain portfolios, said the ICA, whose 6 current members include large domain name holders such as resellers. The group blasted ICANN for its long "silence in the midst of an unfolding debacle," and accused the Internet body of offering little or no help to victims. It's seeking responses to several questions, including how ICANN plans to assist those suffering economic harm from the RegisterFly situation and what lessons it has learned from the crisis. ICANN didn't immediately respond. The situation raises "very serious questions" for which domain name owners are entitled to answers, said ICA Counsel Philip Corwin in an interview. They include what mechanisms ICANN has to monitor compliance with registrar agreements and take action when problems are reported, and whether enforcement amounts only to "change your ways, please, or we're terminating your accreditation." The incident has illuminated issues that were below the radar, he said, and they need to be resolved before it happens again. Corwin said he's disappointed ICANN hasn't made any public statement to the domain owner community on the RegisterFly matter. ICANN must establish a clear process by which domain name registrants can bring their problems with registrars to its attention, and it must have tools to deal with the complaints, Corwin said. In addition to raising questions with ICANN, the ICA will discuss the matter with NTIA Dir. John Kneuer and Congress, he said.
UnifiedNames alleged Medina embezzled company funds to spend on such indulgences as liposuction and escort services. In his Registerflies posting, Naruszewicz called Medina "a selfish, cold-hearted, self loving criminal" who would understand what he's done only "when he is finally in prison." Naruszewicz said he has mortgaged his home and leveraged all his assets to restart the company, which he said will be ethical and customer- and service-oriented. He urged customers to stick with RegisterFly, saying the worst is over.
ICANN did "a good thing," said former board member Karl Auerbach, but he questioned why, if Register-Fly's actions were illegal, it's up to ICANN to step in, rather than the local district attorney. Consumer protection is necessary and important, but the balance between business and consumers is usually a legislative choice delegated to a governmental regulator and overseen by the courts, Auerbach said. ICANN's move is proper "only if we accept the premise that ICANN has a legitimate, and properly empowered, role as a consumer protection agency," he said.
RegisterFly's website was inaccessible Mon. Last Fri., the Registerflies webmaster said the site had been hacked into and taken over by Medina, who locked current staff out and corrupted data. -- Dugie Standeford
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