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Go Daddy Bans Staff Domain Bidding

By David Hamilton, theWHIR.com

July 2, 2008 -- (WEB HOST INDUSTRY REVIEW) -- Discount web host Go Daddy (godaddy.com/) met allegations of unfair, insider bidding in TDNAM (tdnam.com) domain name auctions by drafting a corporate policy restricting employees from participating in auctions.

   
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Posted on a NamePros.com message board on June 20, it was originally reported by Domain Name Wire (domainnamewire.com) editor Andrew Allemann that Go Daddy employee Adam Dicker had outbid another poster on the domain name spyware.us in what some members considered an unethical business practice.

Go Daddy released a statement this week announcing the company's new policy. Go Daddy General Counsel Christine Jones said, "To ensure customer confidence and to avoid any possible future questions of impropriety, all GD employees are now and in the future prohibited from participating in TDNAM auctions, purchasing, sales & back orders."

While measures have been put in place to eliminate the conflict of interest, Go Daddy defends Dicker and his actions. Jones said, "Go Daddy has reviewed the auction and found nothing improper. Adam Dicker's knowledge on the auction was no different from what any customer coming to our TDNAM site would have had."

At the time of the controversy surrounding Dicker's activity, GoDaddy Vice President of public relations Elizabeth Driscoll told Domain Name Wire that there was no policy to forbid employees from engaging in public auctions or registrations, but also noted there are "tools in place to prevent anyone from gaining the opportunity for an unfair advantage in securing a domain name through registration or auction."

Go Daddy joins competitors SnapNames (snapnames.com), Moniker (moniker.com), and NameJet (namejet.com) in banning executives from participating in auctions and inflating bid prices.

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