18(c) What operating rules will you adopt to eliminate or minimize social costs?

Prototypical answer:

gTLDFull Legal NameDetail
.一号店Wal-Mart Stores, Inc.View

18.3 What operating rules will you adopt to eliminate or minimize social costs (e.g., time or financial resource costs, as well as various types of consumer vulnerabilities)?

Walmartʹs proposed operating rules to initially limit registration to Walmart, Yihaodian, and Walmart’s qualified subsidiaries and affiliates will provide a trusted online environment for consumers and will minimize social costs by default. This verified ecosystem will provide users with a single, trusted source for Yihaodian content, products, and information, with a substantially lower risk for the types of misdirection, infringement, and scams that consumers are typically plagued by in .COM and other open TLDs.

Walmart does not anticipate consumer vulnerabilities. In fact, social costs will actually be eliminated in that there will be no need for other trademark and brand owners to defensively register second-level domains in the .一号店 gTLD. Walmartʹs expectation is that use of the .一号店 gTLD will eliminate many of the vulnerabilities that consumers face in the wider Internet today.

18.3.1 What other steps will you take to minimize negative consequences⁄costs imposed upon consumers?

Walmart believes that the proposed operation of the .一号店 gTLD, as set forth in this application, will have no negative consequences or cost implications to consumers. On the contrary, the proposed operation of .一号店 will likely lead to direct benefits for consumers as outlined above.

18.3.2 How will multiple applications for a particular domain name be resolved, for example, by auction or on a first-come⁄first-serve basis?

Walmart does not envision multiple applicants for the same domain names given that domain names will only be allocated by Walmart initially for use by Walmart, Yihaodian and Walmart’s qualified subsidiaries and affiliates.

18.3.3 Explain any cost benefits for registrants you intend to implement (e.g., advantageous pricing, introductory discounts, bulk registration discounts).

Walmart will not offer any advantageous pricing, introductory discounts, or bulk registration discounts because these marketing⁄commercial initiatives are inconsistent with the mission and purpose of the .一号店 gTLD as a trusted online source identifier. Moreover, it is Walmartʹs current intention to provide domain name registrations internally and to Walmart, Yihaodian and Walmart’s qualified subsidiaries and affiliates at no cost, though the company reserves the right to reevaluate this decision and may choose to impose a nominal fee in the future.

18.3.4 Note that the Registry Agreement requires that registrars be offered the option to obtain initial domain name registrations for periods of one to ten years at the discretion of the registrar, but no greater than ten years. Additionally, the Registry Agreement requires advance written notice of price increases. Do you intend to make contractual commitments to registrants regarding the magnitude of price escalation? If so, please describe your plans.

Walmart is committed to providing the domain name registration periods set forth in the Registry Agreement. However, as noted above, as a brand gTLD, the registration and use of .一号店 domain names will be conditional upon a separate, qualified subsidiary or affiliate relationship with Yihaodian. Therefore, providing contractual commitments in a domain name registrant agreement regarding the magnitude of price escalations does not seem relevant or appropriate. Additionally, as noted above, the current business model involves Walmart providing domain name registrations to Walmart, Yihaodian and Walmart’s qualified subsidiaries and affiliates at no cost.

Walmart acknowledges that the current template Registry Agreement requires that the Registry Operator “shall offer registrars the option to obtain registration periods for one to ten years at the discretion of the registrar.” However, Walmart, Yihaodian and Walmart’s qualified subsidiaries and affiliates, as the sole registrants within the .一号店 gTLD, will only be registering domain names on an annual basis. This is done to better account for costs on an annual basis as well as to provide for more concise financial statements in Question 46, i.e., no multi-year registration or deferred revenue.

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gTLDFull Legal NameDetail
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