Underpriced Domain Names

GoDaddy and Yahoo are offering $3.99 and $4.98 domain name registrations.

GoDaddy: Get a 1-year new domain name, transfer or renewal for only $3.99 with each and every new, non-domain product you buy.

Yahoo: $4.98/year (up to 5 years). Domains price Offer is open to new customers that purchase Domains. Limit one offer per customer, and one use per customer on a single account.

If ICANN charges $6/year/domain name registration to the accredited registrars, then do these sales violate any state unfair practices acts? Say for example California's?

Sales Below Cost. As part of California’s Unfair Practices Act ("UPA"), California Business & Professions Code Section 17043 provides:

It is unlawful for any person engaged in business within this State to sell any article or product at less than the cost thereof to such vendor or to give away any article or product, for the purpose of injuring competitors or destroying competition.

Does the fact that there are lots of interesting limitations and requirements take it outside the law? Or does the fact that two parties are engaging in the practice change things?

Disclaimer: I have used both GoDaddy and Yahoo! to register domain name services.