Case isn’t new, just moved closer to Go Daddy headquarters.
CourthouseNews.com is reporting that a class action lawsuit has been filed against Go Daddy for showing pay-per-click ads on registrant’s “coming soon” pages.
This actually isn’t a new case and the latest development actually represents a win for Go Daddy.
The case was filed back in 2007 in Arkansas by Barry Crabb and Matthew McBride. The two Texas residents had used computers in Arkansas to register domain names including mall111.com and suckmydirk.com.
Go Daddy argued that the case should be heard in Arizona instead of Arkansas. The court agreed (see order – pdf) and the case was just transferred to Arizona. So the case is actually nothing new; it just has a new venue. And that venue is more favorable to the domain name registrar.
Register.com faced a similar class action lawsuit about ten years ago because it displayed links to its own products on “coming soon” pages. It ended up settling the case. The initial settlement offer was for class members to walk away with $5.00 coupons off Register.com’s services while lawyers pocketed up to $642,500.
Zak Muscovitch says
I had thought that this kind of issue was cleared up once registrars such as Godaddy started expressly contracting for the right to post such ads in the registration agreement.
From Godaddy’s current Registration Agreement:
“If You are using Go Daddy’s Parked Page services, You agree that Go Daddy may point the domain name or DNS to one of Go Daddy’s or Go Daddy’s affiliates web pages, and that they may place advertising on Your web page and Go Daddy specifically reserves this right. Go Daddy also reserves the right to collect and retain all revenue obtained from such advertising. You may terminate Your use of the Parked Page service at any time through Your online account manager.”
Andrew Allemann says
@ Zak – yeah, not sure if that language was in there when these guys registered their domains. But I doubt anyone typed in their particular domains anyway.
Dan says
Stupid lawsuit. People need to READ the registration agreement. GoDaddy has every right to do what they’re doing.
And if you still don’t like it, CHANGE YOUR DNS!!
Patrick O'Reilly says
Dance with the Devil & You’re Going to get Burned!
John Berryhill says
The same suit was tried in 2001 – Zurakov v. Register.com –
http://www.nycourts.gov/comdiv/Law%20Report%20Files/October%202001/zurakov.htm
“Here, Register fully disclosed its practice of displaying a “Coming Soon Page” in both the “Frequently Asked Questions” Section and the “Help” Section of Register’s website. Moreover, the “Coming Soon Page” was not materially deceptive because it did not interfere with Zurakov’s use of the domain name “Laborzionist.org”. Rather, the “Coming Soon Page” provided an announcement of the domain name “Laborzionist.org” for Zurakov during the period between his registration of the domain name and his construction of the website. Finally, it is undisputed that Zurakov had the ability to delete the “Coming Soon Page” by following the instructions set forth in both the “FAQ” and “Help” sections.”
Henry says
That may not be the only lawsuit brewing for Godaddy.com.
There is a recent bogus email going around spoofing Godaddy.com which will terribly compromise several of their customers’ accounts. I hope they warn their customers about it. I received one and contacted support but they did not have a clue but on their reply. I subsequently emailed my account executive who based on his reply understood that there is a big problem.
So, for those of you with accounts with godaddy watch out for any email purporting to be from Godaddy.com about ICANN verification requirements. The link has the domain name Goddaidy.com
Regards,
Henry.
jeff says
Once you buy the domain then it is yours. Godaddy should not derive revenue for their own good.
Mwaaaaaa says
The employees of GoDaddy should also know that the heavy-hitting law firm of Wilson, Engstrom, Corum & Coulter in Arkansas also just filed a class action lawsuit against GoDaddy (read the lawsuit filing here: http://www.courthousenews.com/2010/05/03/GoDaddy.pdf). In that case, GoDaddy’s General Counsel, who graduated from a 4th-tier law school will be up against the former Deputy Attorney General of the State of Arkansas, Shirley Jones, who took that case believing it has merit. Her background includes: Admitted to the Arkansas Bar in 1985, US District Courts Oklahoma; Tenth Circuit; 1990, Arkansas US District Courts Arkansas, Eighth Circuit; 1996 US Supreme Court.
Given that GoDaddy is facing an employee class action lawsuit AND Wilson, Enstrom, Corum & Coulter in a separate class action lawsuit, things must be rather tense in the hallowed halls of GoDaddy these days.
Andrew Allemann says
@ Mwaaaaa – no, that lawsuit you mention is what I’m writing about here. It’s the same lawsuit. It was filed several years ago.
John Berryhill says
“Shirley Jones, who took that case believing it has merit”
Big flipping deal. What does she know about domain names? The same claim has been tried before with the result that a domain registrant has total control over what appears at the website corresponding to their domain name. The complaint here is like walking into a party, putting on a silly hat, and then badgering the host about having a silly hat on your head.
Take the silly hat off. It’s your head. This type of case has been tried before.
Federal court admissions require $250, a law license, and someone already admitted to sign an application. Some lawyers collect them because people who don’t know better think it looks impressive. Getting a political job in Arkansas requires, well, whatever it requires.
This suit was filed three years ago, and this “heavy-hitting” firm has done nothing but failed to keep the case in the Western District of Arkansas, your “heavy hitter” picked the wrong court, and has nobody to bill for three years of having its motions denied – by the time this case got to the 107th document of record.
It took three years for these “heavy hitters” to read the GoDaddy contract:
“After evaluating the the forum selection clause at issue in this case, the Court finds that it is mandatory, enforceable and neither against public policy nor unconscionable.”
You can read the full smackdown of the “heavy hitters” here:
http://www.archive.org/download/gov.uscourts.arwd.29044/gov.uscourts.arwd.29044.107.0.pdf
It will also come as a surprise to you that companies are not represented in court by their general counsel. Ms. Shirley Jones, not licensed in Arizona, will have to start paying out actual cash to engage a local, so we’ll see how far this gets when the class action firm has to start laying out real money to speculate on this utter turkey of a claim.
John Berryhill says
“I had thought that this kind of issue was cleared up once registrars such as Godaddy started expressly contracting for the right to post such ads in the registration agreement.”
Zak, you are absolutely right. The plaintiff’s attorneys in this case couldn’t competently read the forum selection clause. How do you think they managed with the rest of the contract?