Reclassification :: TLDRisk.com
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Reclassification
TLDR
ICANN allows reclassification.
Reclassification does not eliminate identical renewal pricing protections, aka uniform pricing .
Reclassification creates a new category of domains.
Reclassification is a discriminatory practice.
Reclassification undermines section 2.10c of the base registry agreement.
Registrants cannot easily verify uniform pricing obligations are being met.
Registrars may lack the information required to defend registrants against pricing violations.
After transfer, a new registrant will not be able to prove a domain’s original fee class.
Registrants need proof of a domain’s original fee class.
Reclassification has a significant, negative impact on registrants, with little benefit to registries.
ICANN has the authority to forbid reclassification.
Overview
Reclassification is a scenario where a domain is moved from one pricing tier to another. This has long been considered a violation of the base registry agreement. However, ICANN allows it.
The scenario described below specifically refers to a scenario where a domain is moved from the standard fee class into a premium fee class.
ICANN
ICANN policy and agreements do not prohibit registries from changing a standard domain classification to a non-standard classification, even when a domain is under a period of continuous registration.
ICANN Contractual Compliance, Case/Complaint #01306151 (Emphasis Added)
ICANN has investigated the issue reported in your complaint with the registry operator for the .help Top Level Domain (TLD), Innovation service Limited (Registry). The Registry demonstrated that the renewal pricing charged for wifi.help was identical to all other .help domain name registration renewals in place at the time of the 2024 renewal period and that it is classified as a standard domain name with the lowest renewal price of $22/year.
June 6, 2024 via Email
After disagreeing the domain had a standard classification at the time of renewal:
ICANN Contractual Compliance, Case/Complaint #01306151 (Emphasis Added)
ICANN Contractual Compliance derives its enforcement authority from the agreements ICANN executes with registrars and registry operators. These agreements include the Registrar Accreditation Agreement (RAA) and the Registry Agreements (RAs). Section 2.10(c) of the help RA addresses registry renewal pricing practices. While some .help domain name registrations may be classified as “premium”, that may not impact renewal pricing, e.g. where such reclassification takes place during the life of the registration term , which will only impact the “create” or registration price of a domain name. The registry has demonstrated that the renewal pricing was not changed in this case.
July 9, 2024 via Email
Price Protections
As explained in price protections, ICANN does not consider itself to be a price regulator. Regardless, section 2.10c of the base registry agreement grants registrants some limited price protections in the form of identical renewal pricing . The only exception is if registrants agree to waive those protections following clear and conspicuous disclosure . Agreeing to waive those protections must be done at the time of the initial registration , so unless a registrant has done that, which is effectively impossible for a domain in the standard fee class, those protections cannot be removed from a domain that was in the standard fee class at the time of initial registration.
A New Category
Reclassification of domains creates a new category of domains that new registrants and aftermarket participants need to understand. Prior to ICANN’s endorsement of reclassification, domains could fall into one of two simple to understand categories:
Domains with a standard fee class and uniform, aka standard, pricing.
Domains with a non-standard fee class and no price protections.
With reclassification, there is now a new category:
Domains with a non-standard fee class and uniform, aka standard, pricing.
As of 2024, the industry is not equipped to deal with this new category of domain. Registrants do not realize it is a risk they need to be aware of, and registrars cannot be assumed to have the information required to ensure registries meet their uniform pricing obligations for these domains.
Discriminatory Practice
Reclassification is a discriminatory practice that identifies and targets high-value domains that were registered with a standard fee class. The act of reclassifying domains makes it more difficult for registrants to verify registries are meeting their pricing obligations, and it benefits the registries if registrants are unwilling or unable to demonstrate their domains are entitled to identical renewal pricing protections.
Undermining Section 2.10c
Reclassification undermines the identical renewal pricing protections that registrants expect to receive from...