Yahoo Launches New Initiatives to Insure Purchases Against Fraud

October 17, 2000

Yahoo Inc. launched a new program backed by coverage from Lloyd’s of London to protect purchases made on its auction and shopping sites. According to Brian Fitzgerald, producer for Yahoo auctions, the move is designed to “add another layer of confidence for consumers” during the upcoming holiday shopping season.For the first three quarters of 2000, Yahoo’s transactions totaled $3 billion in sales, the Los Angeles Times reported.

For its auction site, the protection targets transactions, whose closing price is above $25 and below $10,000, and is either paid for and not received, or “materially” different from what was described by the seller. Consumers will be protected for as much as $250 with a $25 deduction. And for consumers using direct payment, up to $3,000 of coverage is available with a $25 deduction.

As for its shopping site, shoppers are protected free of charge for the full value of any item up to $750. Protection up to $1,000 is available to shoppers who store their billing and shipping information on Yahoo’s site. According to Fitzgerald, fraud represents less than 1 percent of all transactions on the Yahoo commerce site.

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