In a surprising move that has sent shockwaves through the domain industry, GoDaddy published updated Terms of Service in February 2026 that fundamentally reclassifies every customer as a "business customer"—regardless of whether they are registering a domain for a multinational corporation or a personal photo album. This dramatic shift in domain consumer protection rights represents one of the most significant policy changes in registrar history, potentially stripping millions of users of the legal safeguards they have long taken for granted.
Understanding GoDaddy New Business Customer Classification
GoDaddy revised Terms of Service, published this month, contains a pivotal modification that affects all 21+ million customers. The TOS now explicitly states that GoDaddy services "can only be used by businesses, not consumers"—a sweeping declaration that eliminates the traditional distinction between commercial and personal domain registration.
The company defines "business customer" with remarkably broad language that includes:
- Any person or entity acting in a business or professional capacity
- Commercial entities, partnerships, companies, organizations, sole proprietors, self-employed individuals, and independent contractors
- Individuals using services for professional purposes—including personal branding, online presence, reputation management, career advancement, or professional networking
- Anyone acquiring services to protect, secure, or manage their personal name, identity, brand, or online reputation for business purposes
Perhaps most tellingly, the terms explicitly state: "Our Services are not intended for private, personal or household use." This means that using GoDaddy to create something as simple as an online photo album for family or a personal travel blog for friends now technically falls outside their defined scope of services.
Why Domain Consumer Protection Rights Matter More Than Ever
The implications of this policy change extend far beyond mere semantics. By declaring all customers as business entities, GoDaddy effectively sidesteps numerous consumer protection statutes that have traditionally shielded individual registrants from unfair business practices. Some Federal Trade Commission (FTC) rules, for instance, apply exclusively to consumer transactions—not business-to-business relationships.
According to the Federal Trade Commission 2024 Consumer Sentinel Network report, consumers filed over 2.6 million fraud reports totaling more than $10 billion in losses. Domain-related scams and unfair registrar practices represent a significant portion of these complaints. Consumer protection laws serve as a critical safety net, providing recourse when registrars engage in predatory pricing, deceptive marketing, or unauthorized charges.
When you register a domain, you are entrusting the registrar with sensitive personal information, payment details, and control over your digital identity. Losing domain consumer protection rights means losing a layer of legal protection that holds these companies accountable for mishandling that trust.
How Consumer Rights Protections Shield Domain Owners
Consumer protection laws serve multiple critical functions in the domain registration ecosystem. First, they ensure transparency in pricing and billing practices. Without these protections, registrars could implement hidden fees, automatic renewals without clear notification, or price hikes during renewal periods that lock customers into paying more for domains they have already built brands around.
Second, domain consumer protection rights provide mechanisms for dispute resolution. When a registrar makes an error or engages in questionable practices, consumers have access to regulatory bodies like the FTC, state attorneys general offices, and consumer protection agencies. Business customers, by contrast, often must rely solely on expensive litigation or arbitration processes.
Third, consumer protections mandate certain standards for data handling and privacy. Registrars must comply with regulations regarding how they store, use, and share customer information. For individuals concerned about their personal data being harvested or sold, these protections are essential safeguards.
The Hidden Costs of Business Customer Status
The updated TOS also grants GoDaddy expanded authority to verify customer identity and business status. While this may seem like a reasonable security measure, it opens the door to increased surveillance and data collection requirements that privacy-conscious users may find concerning.
Additionally, the terms now make explicit that customers bear full responsibility for ensuring that any auto-generated content produced by GoDaddy AI tools does not infringe on third-party rights. This shifts liability squarely onto users while the company profits from providing these AI services—a concerning trend in the industry.
How to Protect Your Domain Consumer Protection Rights
If you are concerned about maintaining your consumer protections while registering domains, consider these proactive steps:
Choose Privacy-Focused Registrars
Not all registrars have abandoned consumer protections. When you register a domain, prioritize companies that respect individual privacy and maintain clear consumer-friendly policies. Look for registrars that explicitly cater to personal users and do not require business classification.
Enable Comprehensive Privacy Protection
Domain privacy is not just about hiding your contact information—it is about controlling your digital footprint. Choose a registrar that offers robust WHOIS privacy without requiring excessive personal documentation.
Document Everything
Screenshots, email confirmations, and chat logs can prove invaluable if disputes arise. Save copies of terms of service at the time of purchase—they may change without your explicit consent.
Industry-Wide Implications
GoDaddy policy shift raises important questions about the future of domain consumer protection rights across the industry. As the world largest registrar by market share, GoDaddy decisions often influence competitor behavior. Will other major registrars follow suit?
According to GigaLaw Domain Name Dispute Digest, UDRP decisions fell 0.9% in 2025 to 8,476 cases, suggesting either improved compliance or reduced access to dispute resolution mechanisms.
The Bottom Line
GoDaddy reclassification of all customers as business entities represents more than a terms of service update—it is a fundamental restructuring of the relationship between registrars and registrants.
Your domain name is often the foundation of your digital identity. Understanding your domain consumer protection rights has never been more critical.
Originally published at MonstaDomains Blog
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