House panel takes a whirl in virtual world

A subcommittee meeting on the Internet portal is simulcast on the popular fantasy site Second Life. Session is only informational, but members have real concerns.

WASHINGTON — A man with an oversized top hat sat in the front row of a House subcommittee hearing Tuesday, munching on popcorn. Next to him was a woman wearing wings that let her fly out of her seat. And she was sitting by a large bumblebee.

It wasn't an April Fool's Day stunt but the first time a congressional hearing was simulcast into the popular online virtual world called Second Life. With more than 12 million accounts, including an estimated 500,000 active users, the 3-D fantasy portal that lets users anonymously create customized personalities for themselves has now drawn the attention of Congress.

The increased popularity of virtual worlds on the Internet raises tricky public policy dilemmas about consumer protection, privacy, child safety, banking, terrorism and addiction. Though the hearing by a House Energy and Commerce subcommittee was informational, and no legislation has been proposed, congressional interest could represent the first step of what may be stepped-up government oversight in an area often likened to the Wild West.

The panel responsible for oversight of the Internet is chaired by Rep. Edward J. Markey (D-Mass.), who has his own "avatar," or online image.

The live feed of the computer-generated room was projected on television screens in the real hearing room. More people seemed to sign on for the animated version -- the company said it was 65 -- than showed up to watch in person. The real Markey let the cyber Markey pound the gavel to open the meeting.

"My avatar actually looks like he's been working out," he said.

Those who promote the program say it represents the future of social interaction online. In Second Life, nonprofits raise money, colleges offer classes and companies train employees.

There is a less savory side to the virtual worlds, though. Questions about the possible need for government regulation arose after a virtual "bank" promising interest rates of more than 40% disappeared from Second Life late last year with $75,000 in real-money deposits. Second Life, which says millions of dollars pass over its servers each month, responded by prohibiting virtual banks. Gambling and simulations of sexual activity with minors had already been prohibited.

Philip Rosedale, founder and chief executive of Linden Lab, the San Francisco-based company that owns Second Life, downplayed concerns about fraud by telling the subcommittee that it was rare and that the company monitored suspicious activity.


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