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.pharmacy TLD faces action after losing complaint over Canadian drug peddler

Kevin Murphy, July 16, 2018, Domain Registries

ICANN has hit the .pharmacy gTLD registry with a breach notice after a complaint from a Canadian web site that was refused a .pharmacy domain.
The US National Association of Boards of Pharmacy failed to operate the TLD “in a transparent manner”, contrary to the Public Interest Commitments in its registry agreement, ICANN says.
It’s only the second time, to my knowledge, that a registry has been told it has broken its contract after losing a Public Interest Commitments Dispute Resolution Process decision.
NABP runs .pharmacy as a restricted TLD that can only be used by licensed pharmacies.
A year ago, a company called Canadawide Pharmacy Ltd, which currently uses a .org domain, applied for canadawidepharmacy.pharmacy but, last December, was rejected due to claims that it was “until recently” affiliated with unlicensed cross-border drug sellers.
The sale of medications into the US, where patients are gouged mercilessly by pharmaceuticals companies, from Canada, where common drugs are sold at a fraction of the price, is controversial, with NABP previously being accused of applying for .pharmacy for protectionist reasons.
(The price of generic Viagra on Canadawide’s web site goes as low as $2.15 per dose. In the US, you’re looking at about $66 per dose for the branded version, which doesn’t even include the price of dinner.)
Earlier this year, Canadawide filed a PICDRP, accusing .pharmacy of breaching its own contractual commitment to transparency.
And it won. The PICDRP standing panel ruled 3-0 this month (pdf) that NABP lacked transparency on three counts when it rejected Canadawide’s registration.
The registry failed to provide enough evidence linking Canadawide to unlicensed affiliates, the panel ruled. It also seemed to acknowledge that the alleged affiliates were historical.
As a result of the panel’s finding, ICANN has made a public breach notice that gives NABP until August 11 to:

Provide ICANN with corrective and preventative action(s), including implementation dates and milestones, to address the PIC Reporter’s complaint, the PIC Standing Panel’s findings and ensure that NABP will operate the TLD pharmacy in a transparent manner consistent with general principles of openness and non-discrimination by establishing, publishing and adhering to clear registration policies

None of this seems to suggest that Canadawide will definitely get its domain. If NABP has sufficient evidence to continue to deny the application, it looks like it could come into compliance by merely being transparent about this evidence.