When bidding on auctions at Go Daddy most are under the assumption that when the auction closes their bid responsibility ends.
In a recent Namepros thread that dealt with buyer’s remorse, members shared different experiences with certain auctions they participated in.
One member stated that three days after an auction ended they were sent an email that the winning bidder did not pay and they were given the bill to pay. The member siad they purchased something else in the meantime and called their rep to remove the bill. Another member talked about being pleasantly surprised that he lost an auction but then then had the chance to buy it much cheaper than the auction close. The high bidder did not pay and he got the opportunity to buy it where they started bidding against one another. So after stopping at $3,000 he got the name for $400.
I had someone a few weeks earlier email me that Go Daddy sent them a bill and that they had to pay it.
I read all the terms of service agreements and it does not say what the responsibility is with relation to paying for a name after losing the auction.
I spoke to Paul Nicks and he said that technically your bid is binding until the auction comes to completion. Completion being the name has been paid for not the auction closing time. Paul said with expired auctions since only Go Daddy is the financial beneficiary they will take the price back to where the bidding war began. Public auctions do not have the same mechanism because that is customer money.
So in the example above the member got a chance to pay $400 because even though he went as high as $3,000 the non paying, winning bidder has all their bids voided. So the price goes back to where the two way bidding started. In a public auction the price would have been $3,000 the highest bid made.
I expect the terms of service agreement to eventually update and let members know what their bidding responsibilities are when an auction closes.