GoDaddy’s DomainsByProxy Service is BS

I had all but forgotten an incident involving the DomainsByProxy.com service provided by GoDaddy.com until I read a post about a bad GoDaddy’s experience at SapientSoft.com that reminded me of my own…

A few years ago I ran a site and, for personal reasons, wanted the WHOIS information to remain private. Since I had registered the domain name through GoDaddy.com, I decided to take advantage of their DomainsByProxy.com service for $10/year. The sole purpose of their service is to act as an intermediary, while keeping your contact information private, all for a yearly fee. Please keep in mind that I don’t have any issues with GoDaddy’s registration services and use it regularly. Actually, I do get annoyed by their overzealous upselling, but that’s another issue entirely.

So, I had my domain registered, my info private, site up and running and one day I get an email from DomainsByProxy.com stating that they charged me $20 for a baseless inquiry made into the aforementioned domain. There was nothing in the terms that I agreed to that applied to this charge, and the charge was not authorized by me. When I emailed DomainsByProxy.com, most of my attempts were ignored.

A domain proxy service exists for the sole intention of acting as an intermediary and for keeping customers’ information private. With DomainsByProxy.com, if someone wanted to contact a domain owner they would send an email to something like “yourdomain@domainsbyproxy.com.” The email would then be forwarded to the domain owner. If the domain owner fails to take action, the proxy service may be legally bound to release the contact information in some cases.

Anything that transpired in this case goes against our agreement and the whole reasoning behind a proxy service. They clearly state (see below) that there may be fees for anything beyond email correspondence, which there was not. The question of what is “reasonable” is nullified by the fact that this was within the scope of its regular services and/or all correspondence was handled over email.

DBP reserves the right to charge a reasonable service fee for administrative tasks outside the scope of its regular services. These include, but are not limited to, customer service issues that cannot be handled over email but require personal service, and disputes that require legal services….

I retained a copy of the Domain Name Proxy Agreement and nowhere does it contain a “20″ or “twenty” dollar fee. However, the following is from their FAQ:

What are Domains By Proxy’s shipping and handling fees?
When Domains By Proxy receives certified or traceable courier mail or legal notices addressed to your domain that requires forwarding, we post an e-mail message to your Domains By Proxy account under the “My Messages” page. The message identifies the sender of the correspondence, the date we received it and a brief description of its contents. You have 72 hours to decide whether you wish to reject the correspondence or have it forwarded via overnight courier or facsimile (or both).

- If you choose to have the correspondence faxed, the charge is $1.50 per page plus a handling fee of $20.00.

- If you choose to have the correspondence sent via overnight courier, the charge is the courier’s cost (typically Federal Express standard overnight) plus a handling fee of $20.00.

After finding this, I logged into my DomainsByProxy.com account and there was nothing under “My Messages” and I never asked for anything to be delivered via overnight courier. Additionally, I never received anything via UPS, FedEx, or any other courier service. There was only an email correspondence, which is excluded from any additional fees and falls within their scope of business.

As for the unauthorized credit card charge, let me explain it simply – I did not authorize the use of the credit card for this charge. There was no invoice or bill. The credit card was to be used once, but GoDaddy.com retained the information in their system and out of all the options available, used that one. All credit card information has since been removed, as far as I can tell. Aside from that purchase, I primarily use PayPal for domain purchases.

When this was all said and done, I was out $20 and DomainsByProxy.com lost a customer. I cancelled the service on three domains ($30/year) and spread the word. And, now that I have another outlet, I’m spreading it some more… As for the legal issue, there wasn’t one. The claim was baseless and I went on with my business, never hearing about this again. I later decided to let the domain name and web site go, which I now regret, because I was getting inundated with spam and had too many things on my plate at the time, not that I have any less now.

The moral of the story:

DomainsByProxy.com is a useless and costly service that is not intended to protect its users whatsoever. You are much better off using a post office box, or some other unidentifiable information to register your domain names, if you need the privacy.

  • http://first100dollars.com First $100

    that is really a sad story to hear. i think, it is but a warning for all of us. The information you have shared is very meaningful especially for those who would also want to purchase the service by the domainsbyproxy.

  • http://drivelocity.com drivelocity

    First $100, You live and learn. Fortunately, it only cost me $20 + the yearly fees up to that point. In the long run, it cost them a lot more…

  • http://www.trade-show-guru.com Steve | Trade Show Guru

    hey drivel,
    Could you have disputed the charge? That would have pissed me off too! I have a domain with godaddy plus the privatedomain thing. I hope I don’t get hosed like you did. I have since used 1and1, and they do the private registration for FREE! I’m just too lazy to move my godaddy domain, but your story has me thinking about it. I like private registration, because with public whois your email is out there for every spammer on the planet. ~ Steve, the trade show guru

  • http://drivelocity.com drivelocity

    Steve, It wasn’t really up to me to dispute… The credit card used belonged to my parent’s, but was in my name. I used it for one of their sites. I probably would have, but then you also have to consider the consequences. If GoDaddy closed my account, I’d have much bigger issues to deal with. That’s probably why they can get away with so much.

    I’m dealing with them, as a matter of fact, on another issue right now. Depending on how it turns out, I may need to share that info as well…

  • http://www.trade-show-guru.com Steve | Trade Show Guru

    Not to make light of this, but someone has to pay for those million dollar SuperBowl spots. :)
    I hadn’t thought of godaddy suspending your account, but you’re probably right. I’ll just say again, 1and1 offers FREE private registration. Unfortunately, moving a domain registration (based on the one time I did it) is a pain. ~ Steve, the trade show guru

    Steve | Trade Show Guru´s last blog post..Green Trade Show Displays

  • http://drivelocity.com drivelocity

    Steve, Go ahead and make light… I think spending that much, especially for a domain name registrar with a fairly narrow market, is ridiculous. I wouldn’t be surprised if, before, during and after the commercial, the majority of people don’t know what GoDaddy is, much less know anything about domain names.

    With a P.O. Box and an eVoice account, you have all the privacy you need. Click here for eVoice Receptionist – Quick setup & free trial!

  • http://www.murietaonline.com Rancho Murieta

    I like godaddy, but I agree with you on the proxy info. It’s a waste of money.

  • http://www.bestmansbestfriend.com Sire

    Hi,

    So NOW I hear about this, a week after I signed up for a private registration for one of my GoDaddy sites.

    I used to use 1and1 but didn’t like the way they sent invoices via email, and didn’t tell me that my registered card had expired, and then sent me a letter via a collection agency demanding the domain fee PLUS a handling charge.

    There’s always someone trying to stiff the little guy…

    Zander

  • http://drivelocity.com drivelocity

    Sire, Well, you live and learn… I learned the hard way & it cost me $20 in addition to the other fees. Hopefully I can save people some money and hassle dealing w/ a similar situation. As far as 1and1, I have issues with them. I’ll have to look up that information to share!

  • sicooo

    be aware and stay away from domainsbyproxy.com

    scam warning

    they work on stealing domains less than 100000 in alexa rank

    they will first hide your informations then hide your login details and you will lose the ability to change the privacy forever and after that they will ask you for 370$ if you want to get back your account with them and sometimes they registered your domain by their name

    stay away from those scammers

    they stole 3 domains from me and I can`t get them back till now

  • http://www.nullamatix.com/godaddy-nightmare-express-written-objection-to-transfe/ GoDaddy: Express Written Objection to Transfer @ nullamatix.com – Technology Made Simple

    [...] Domains By Proxy is a Waste of Money [...]

  • http://www.polycarbonates.org Maryam Kaur

    I have 100 domains on Godaddy and i can say that this company is very reputable.:;.

  • http://www.kakimasak.com Resepi

    Never tried Godaddy but from what I heard, they are huge!

  • Russell

    Domains by Proxy (DBP) is ideal to publish hate sites as long as you don’t use your real name. Somebody has done that to me – and DBP don’t care.

    While they have a Proxy Agreement which state quite clearly in Clause 4, Section iv, sub-section G, items 2, 3, 4, 5 & 6 that the site cannot be defamatory, obscene, impersonating another person or site etc. etc., David Chestnut (General Manager) says “Please be advised that our Domain Name Proxy Agreement prohibits use of our service for illegal or immoral purposes. Although DBP does not make determinations on the actual legality or morality of our customers’ websites…” and goes on to say that if I get a Court Order, the infringing site will be deregistered quickly…

    The problem is that the coward who put the site up about me did not use his real name, so it is impossible to get a court order.

    Thanks for the tip about $20 charges. I’ll orchestrate a few dozen registered letters from lawyers – that should cost him a bit!

  • http://www.lawfirmweb.net Larry attorney web design

    I also used domains by proxy through GD. I got rid of it since there are better alternatives to GD.

  • Coolman

    Godaddy is the epitome of all internet douchebags. If you do a domain search on their site and NOT register it immediately, they park the domain with DBP and extort you for the rights.

  • http://drivelocity.com drivelocity

    I have not experienced this, and I’ve searched for hundreds if not thousands of domains.

  • http://scholarshipseasy.com easyscholarships

    I’ve never been charged the $20, but I only have it on a few domains. As long as they keep my privacy “private” I’m good. However, if they did charge me $20 without my consent, then yea I’d be pretty mad. But as far as keeping your data private I think their ok. Have you had any issues regarding privacy or just the $20 charge?

  • Joe V

    What is wrong with this guy? Someone filed a complaint on your name, which goes through ICANN. DBP charged you an admin fee to offset the time that it takes to check into this. Every single domain registrar has admin fees to cover these pending investigations. If you don’t like it, don’t register domains.

  • Mike

    I have had domains and services with GD for several years. On all of the critical ones I have purchased DBP. I have never had a problem with their DBP service. I get almost no spam through several email accounts. When questions arose I have been able to deal with them over the phone without any problems at all. I have had charges reversed for automatic renewals I had forgotten to cancel which was entirely my fault. Any time I called service I received great, courteous service. Their service department is one of of the reasons I wouldn’t consider another provider. The lack of problems with domains and programs has convinced me it might be hard to find a better provider.

    PS: I’m a retired IT network administrator for a large state agency.

    I agree with the comments from drivelocity & easyscholarships above.

  • http://drivelocity.com drivelocity

    Joe V, Please read the information provided. Nowhere was an ICANN complaint mentioned, nor did one exist. The rest of your comment is just as erroneous…

  • http://www.christianecon.com christianecon.com

    Haha Joe V. nothing’s “wrong with this guy.” He’s sharing pertinent information.

    I would posit something’s wrong with someone who for some reason gets annoyed by that, and feels compelled to rush to the defense of GD or DBP against their vicious customers merely sharing information.

    “If you don’t like it, don’t register domains.” Wow aren’t you just the big voice of authority. If we all had that like-it-or-don’t-use-it attitude toward improving things, we’d still be living in caves.

  • http://rhe.name rhe

    do you have an alternate except DomainsByProxy?

  • http://drivelocity.com drivelocity

    I think most of the larger registrars offer the same thing… I don’t necessarily want to recommend ones I haven’t tried myself.