GoDaddy will inherit some 850,000 of the domains originally registered by RegisterFly according to this week’s ICANN agreement. RegisterFly has been struggling for some time. Last month, a federal judge issued an injunction enabling ICANN to terminate RegisterFly’s accreditation. This came after many different problems and customer complaints, not the least of which were fraud accusations.
E-Commerce Times describes one of the fiascoes well:
Those problems include allegations of fraud and that RegisterFly aggressively cajoled customers to purchase upgraded services. Some customers complained to ICANN that they missed deadlines for renewal of domains, only to see those domains transferred to a company owned by RegisterFly CEO Kevin Medina, who then offered to sell the domains back at a higher price.
I’ve heard complaints about RegisterFly for months. However, since the April 26 ruling, the status of domains registered via RegisterFly was really in jeopardy. Once the domains have been transferred to GoDaddy, domain owners will once again be able to manage, transfer and renew the domains. Of course, GoDaddy will benefit from the transfers, but ICANN feels that the transfer will benefit the domain owners as well. I’m sure they’ll be glad to be free from the problem-ridden registrar.