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Do GoDaddy steal their own clients domains?

I have been a long term GoDaddy client these past 5+ years - with several active commercial domains. 


So when one of my GoDaddy domains expired - which I had bought from them for $10 several years previously - I was not unduly alarmed and the FOLLOWING DAY I logged into my GoDaddy account to renew the domain subscription... or in the worst event purchase the now vacant domain name again. I had not monetised the domain it had remain unused. 


However when I logged in I realised GoDaddy had immediately impounded and ring fenced the domain THEMSELVES and now owned the domain THEMSELVES. Their new terms required me to pay a premium to GoDaddy to purchase the expired domain from GoDaddy.  So GoDaddy now owned my domain THEMSELVES.   


It appears therefore that as a GoDaddy client if your domain lapses, even by a matter of minutes, YOUR DOMAIN does not become FREE AND VACANT but instead GoDaddy appear to RETAIN YOUR NAME and additionally have the right to immediately impound and ring fence your domain name THEMSELVES and offer to sell THE DOMAIN back to you for a large premium. 


Fundamentally in using the GoDaddy domain registration service you are also becoming a financially obliged business partner with GoDaddy because should you wish to leave the relationship once the term expires your domain will NOT ACTUALLY EXPIRE but be impounded by GoDaddy - then to be sold back to you.  UPDATE: I have now found the DOMAIN for sale for $377 on an apparently RIVAL domain regisration service called NETWORK SOLUTIONS. Is it possible that NETWORK SOLUTIONS are a sibling of GoDaddy selling stolen goods? 

Network Solutions.jpg

Super User III Super User III
Super User III

Re: Do GoDaddy steal their own clients domains?

If you let a domain expire then it is no longer yours to steal.  But depending on the registry there is usually about 2 week window to just pay for renewal, after that there is another couple week window where you could recover the domain but there is a redemption fee in addition to the renewal.


As these windows are to protect you from losing your domain, it would need to be done thru your account.