Net Giants Called On to Fight Fraud

Amazon.com Inc., EBay Inc. and Yahoo Inc. were asked by a U.S. House committee to help stop scam artists targeting the 36 million Americans who participate in Web auctions.

Some bidders take part in an online sale solely to drive up the product’s price. Such fraud was the topic of a letter sent to chief executives of the three companies from House Energy and Commerce Committee Chairman Billy Tauzin (R-La.).

The panel is investigating auction rules and practices that deter fraud and whether Congress can help craft a solution. Tauzin, who plans to hold a news conference today with EBay President Margaret Whitman, said auction fraud appears to be the biggest problem on the Internet.

“We request your assistance in determining the causes of online auction fraud as well as solutions to help protect consumers and boost confidence in e-commerce,” Tauzin and Rep. Heather Wilson (R-N.M.) wrote Whitman, Amazon.com founder Jeffrey Bezos and Yahoo Chairman Terry Semel.

EBay will give Tauzin information about how the company is improving the safety of online payments and educating users, spokesman Kevin Pursglove said.

Yahoo’s auction division is reviewing the letter and will respond “appropriately,” spokeswoman Nancy E. Gallinghouse said.

Amazon.com officials also will respond to the letter and will be willing to help combat fraud, said Paul Misener, Amazon.com’s vice president for global public policy.