Domain Brokers Unite for Voluntary Code of Conduct Implementation

Started by Domaining News, Apr 01, 2023, 01:40 AM

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The ICA, a trade association for domain investors and related businesses, has released its voluntary code of conduct for domain brokers, which is a positive initial effort to improve the industry.

The code was created during the ICA meeting in Las Vegas, where brokers gathered to discuss its implementation. Although it is currently optional for ICA members to follow, those who do will receive a designation on the association's website.

The ICA, for now, refrains from intervening in disputes between brokers regarding the code. However, this code represents a step in the right direction. While many brokers have high ethical standards, there are instances that tarnish the industry's reputation. Some recurring scenarios include misleading advertisements, manipulative pricing, deceptive representation, and unauthorized selling of domains.

To address these issues, the code emphasizes the importance of obtaining written authorization from buyers, sellers, or owners before representing them. In cases where brokers are soliciting interest without authorization, they must clearly state that they are not acting on behalf of the domain owner. Furthermore, the code prohibits brokers from representing both the buyer and seller without disclosing their dual agency and obtaining consent from their clients.

By addressing these concerns and implementing ethical guidelines, the code of conduct helps lay the foundation for a more reliable and trustworthy domain broker ecosystem.