FTC Settles With Adult Website Operators Over Affiliates’ Spam

WASHINGTON — The Federal Trade Commission and the Justice Department have announced a Dec. 7 settlement in a civil case filed against TJ Web Productions for liability incurred when its affiliates allegedly used pornographic spam to promote the company’s paysites.

TJ Web Productions attorney Clyde Dewitt told XBIZ the parties had actually reached an agreement as early as June 2006, but it took several more months for the U.S. District Court in Las Vegas to enter the judgment.

Under the terms of the stipulated judgment entered into by the parties, TJ Web Productions agreed to pay a civil penalty of $465,000, the bulk of which is payable by the defendants over three years.

The company also is permanently enjoined from violating either the CAN-SPAM Act or the FTC’s Adult Labeling Rule.

“Although TJ Web Productions did not send the email directly to consumers, the Nevada-based company operated an affiliate marketing program and induced others, by monetary payments and other considerations, to transmit commercial email messages on its behalf,” an FTC release said.

The agreement also calls for TJ Web to obtain agreements from prospective affiliates saying that they will comply with the terms of the court order.

Dewitt said liability for affiliate programs is an ongoing problem because there is no foolproof way to stop affiliates from using spam to promote paysites. However, Dewitt said he believes many spammers have opted to pursue more lucrative products such as Viagra, investments and phishing schemes.

“Whatever CAN-SPAM was meant to do, it isn’t working,” Dewitt said. “The law ambushed the adult industry and for a while it took affiliate programs some time to figure out how to cope. U.S. affiliate programs, including TJ Web, have clamped down on the problem and terminated affiliates who spam. Yet, spam has doubled in the past year.”

The FTC filed its complaint against TJ Web Productions in July 2005. At the time, the government also filed suit against six additional companies, charging similar violations of the Adult Labeling Rule and the CAN-SPAM Act.

To date, the FTC has settled with five of the seven total companies identified in the 2005 crackdown. Total settlements have netted more than $1.6 million in civil penalties.

Under the Adult Labeling Rule and CAN-SPAM, commercial emailers must use the phrase “sexually explicit” in the subject line of the email. Commercial emailers are also required to give recipients a method to opt out if they choose not to receive the messages.

TJ Webb Productions is the parent company for Adultpaymaster.

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

FSC Publishes Analysis of Federal Trade Commission Event Promoting AV

Free Speech Coalition (FSC) has published an analysis of a Federal Trade Commission (FTC) event held this week that promoted age verification among other forms of speech regulation.

GirlsDoPorn Owner Michael Pratt Pleads Guilty to Sex Trafficking

Michael Pratt, former owner of the rogue website GirlsDoPorn, pleaded guilty in the U.S. District Court for the Southern District of California on Thursday to sex trafficking and conspiracy to commit sex trafficking charges, according to a report by City News Service.

Federal Judge Grants Partial Halt of Florida AV Law

The United States District Court for the Northern District of Florida, Tallahassee Division, has granted a preliminary injunction against HB 3, the state's age verification law, as a lawsuit filed by two online trade associations challenging the law makes its way through the courts.

Aylo Releases Statement on Suspending Access to Pornhub in France

Technology and media company Aylo, which operates adult sites including Pornhub, YouPorn, and Redtube, has released a public statement regarding its decision to block access to its sites in France.

Pornhub Blocks Access in France in Response to SREN Law

Pornhub parent company Aylo has opted to block access to its sites in France rather than comply with age verification requirements under the country’s Security and Regulation of the Digital Space (SREN) law.

Canadian Senator Revives Push for National AV Law

Sen. Julie Miville-Dechêne, whose previous multiple attempts to legislate national age verification requirements all failed, has introduced a new bill that would impose fines of up to $500,000 on adult sites that do not implement age verification for Canadian viewers.

FSC Submits Statement to House Committee in Support of FIRM Act

Free Speech Coalition has announced that it submitted a statement to the House Financial Services Committee in support of the Financial Integrity and Regulation Management (FIRM) Act.The announcement follows:

Trump Tariffs Remain in Effect Pending Appeal of Trade Court Ruling

The U.S. Court of Appeals for the Federal Circuit on Thursday stayed an injunction by the U.S. Court of International Trade, delaying the trade court’s order blocking the Trump administration’s sweeping tariffs, which have significantly impacted the pleasure industry.

EU Investigating 4 Adult Sites for 'Suspected Breaches' of DSA

The European Commission has initiated formal proceedings against Pornhub, Stripchat, XNXX and XVideos for “suspected breaches” of the Digital Services Act (DSA), the Commission announced in a statement Monday.

Luxembourg Rejects Request to Enforce French AV Law

Government officials in Luxembourg have rebuffed a French government request to help enforce France’s Security and Regulation of the Digital Space (SREN) law by taking action against webcam platform LiveJasmin, the Luxembourg Times is reporting.

Show More