The Australian Domain Authority (auDA) has released a warning to domain name resellers and consumers about the dangers of long-term registration contracts for the .com.au domain.auDA CEO Chriss Disspain said several suppliers are offering licences for periods of between two and 10 years, when licences last a maximum of two years before being reviewed or renewed.
Disspain is concerned that if a
supplier goes out of business, they cannot process renewals even though the buyer has paid in advance. The buyer would have to move to a new supplier and pay for the remaining years again.
auDa also checks domain name eligibility every two years. If an applicant's domain is rejected, the applicant again loses the money it pre-paid for the remaining years on the contract.
Disspain acknowledges that domain prices may fall in coming years, meaning long contracts do not necessarily equate to cost savings. Inquiries can be directed to auDA (www.auda.org.au) or the Australian Competition and Consumer Commission (www.accc.gov.au).