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Subject:
From:
Timothe Litt <[log in to unmask]>
Reply To:
Timothe Litt <[log in to unmask]>
Date:
Sat, 4 May 2013 05:30:36 -0400
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> It is unimaginable for a party to sign a contract which allows the
> other party to unilaterally change the terms of the contract. 
One might think so.  One might even wish it were so.  But it happens 
every day.  You probably clicked-through such language many times when 
signing-up for on-line services.  Attorneys automatically include these 
provisions in every draft and try to minimize what they give up in 
negotiations when they are noticed - when they have to negotiate.

Your credit card agreement includes such language.  So do the terms and 
conditions of on-line retailers, ISPs - and yes, registries - virtually 
every persistent consumer agreement in the US.  Quite frequently, they 
don't even bother to give you notice of changes - "you must keep 
checking the website for changes to these terms and are deemed to have 
consented if you keep using the service after we post the change."  
Unless some consumer protection law requires proactive  notice.  Usually 
the only recourse is 'if you disagree, you can stop using the ' (card, 
service, website).

Of course, this is always asymmetric.  The party with power 'must have 
the flexibility to deal with unexpected circumstances' and can't be 
bothered to deal with each individual consumer.  But 'my employer went 
out of business so I need to reschedule payments until I get a new job' 
isn't in the agreement because consumers have no leverage.

 From the point of view of the provider, this is actually quite 
understandable.  Just imagine a bank having to negotiate a new - 
potentially different - signed agreement with every card-holder every 
time the interest rate changed.  Or a registrar having to negotiate with 
every domain name holder when a new abuse scheme is developed...  A 
provider can't afford to deal with each consumer - at the prices we 
demand for services.

This isn't to say that providers are necessarily evil.  We generally 
rely on their being reasonable in how they apply their power.  Of course 
absolute power does tend to corrupt, absolutely.

When the power is more equal - e.g. two equally-sized corporations - the 
attorneys will try for mutual written notice, provide a formal change 
procedure, try to anticipate contingencies - in short, treat each-other 
with some respect.

I'm not defending the practice - I think there needs to be a reasonable 
compromise between consumer protection and what's practical for 
providers.  In part that means that groups like ours need to aggregate 
the voices of constituents in these agreements. See my recent comments 
on proactive notice to end-users in the discussion about registrant 
rights and responsibilities...

Cheer Verisign on if you like - the drafting process as presented in 
that letter seems reprehensible.  But it is worth noting that if 
Verisign and the registrars win this battle, the benefit will not filter 
down to your agreement with them.  Verisign will still put 'we can 
unilaterally change this agreement' in the end-user agreement for your 
domain name, and the use of their website.  And they won't even notice 
the inconsistency - unless we say something.

Timothe Litt
ACM Distinguished Engineer
--------------------------
This communication may not represent the ACM or my employer's views,
if any, on the matters discussed.

On 04-May-13 00:00, Horacio T. Cadiz wrote:
> On 05/04/2013 05:10 AM, Robin Gross wrote:
>> Powerful comments from Chuck Gomes & Verisign about the proposed 
>> Registry Agreement and ICANN's lack of good faith in the negotiation 
>> process:
>> http://forum.icann.org/lists/comments-base-agreement-29apr13/msg00002.html
>
>    It is unimaginable for a party to sign a contract which allows the
> other party to unilaterally change the terms of the contract. Then again,
> as Gomes pointed out, ICANN is on top of a pile of money (USD 350m)
> and can afford to wait the applicants out.
>
>




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