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

Prototypical answer:

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)?

All potential domain name registrants within this gTLD will be vetted to ensure that they meet all regulatory standards, including pharmacy licensure, drug authenticity, and valid prescription requirements before being able to register in the .PHARMACY namespace. In addition, the registry will incorporate both active and passive safeguards into its operation to ensure that these registrants continue to abide by the terms and conditions set forth in their registration agreements.

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

In addition to requiring a pre-registration and post-registration verification⁄audit, NABP and the coalition are currently discussing the potential of a “look to the right of the dot” marketing initiative to help educate and empower consumers to research and purchase pharmaceuticals from reputable online pharmacies, see www.NABP.net. Additionally, because of the restrictive nature of the namespace, there will be no need for trademark and brand owners to defensively register in this gTLD. In fact, even if they wanted to, they would be denied registration unless they met the eligibility criteria established for legitimate online pharmacies and related entities.

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?

NABP and the coalition do not envision multiple applicants for the same domain name based upon the limited number of domain names registered in the namespace and the proposed initial business model set forth in Section 18.1.3 above, e.g., the initial requirement to have a domain name correspond to a business name or trade name. However, if such an instance should arise, NABP and the coalition believe that a phased equitable allocation approach modeled after those that ICANN has previously approved in connection with numerous ICANN Registry Service Evaluation Process (RSEP) requests would be the most prudent path forward, e.g., RFP, auction, and then first-come, first-serve.

NABP and the coalition have not yet had any formal discussion regarding the allocation⁄use of domain names initially reserved by the registry and⁄or any potential Founder’s Program as identified in Section 18.3.4 below.

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

NABP does not currently envision any advantageous pricing, introductory discounts, or bulk registration discounts given the projected limited size of the namespace. However, NABP is open to evaluating and potentially implementing any marketing initiatives that may be proposed from within the community.

With regard to the allocation of the premium domain names identified in Section 18.1.3 above, NABP is open to evaluating the creation of a Founder’s Program as has recently been used in some gTLD launches to incentivize early adopters and⁄or supporters. The implementation of any such program would be undertaken only after a deliberative consultative process within the coalition.

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.

NABP is committed to providing domain name registration services in accordance with the periods set forth in the Registry Agreement and providing domain name registrants with pricing notice and predictability. However, in connection with potential premium generic or geographic domain names identified in Section 18.1.3 above, additional requirements may be implemented that would legally bind these registrants in connection with the registration and use of these domain names. These terms will be known by this class of domain name registrants prior to the creation of any legal obligation between the parties.

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