Panel Hears Fraud Schemes Involving Porn

WASHINGTON, D.C. – A House panel was told Thursday that the “early adopters” of the Internet have seized on opportunities against consumers – and most of the fraudulent activity involves online pornography.

Howard Beales, the Federal Trade Commission’s director, also said that peer-to-peer software can expose consumers to unwanted pornography, as well as games, videos and music that may be inappropriate for children.

Beales told the Subcommittee on Commerce, Trade, and Consumer Protection of the House Committee on Energy and Commerce that although the Internet has empowered consumers with instant access to a breadth of information, “fraud artists also have proven adept at exploiting this new technology for their own gain.”

He spoke at a hearing titled, “Online Pornography: Closing the Doors on Pervasive Smut.”

Beales, citing numerous incidents involving deceptive and unfair practices in the distribution of online pornography, said it has brought over 300 Internet-related enforcement actions.

In one example, Beales said the FTC sued John Zuccarini, who registered some 6,000 domain names that were misspellings of popular websites for “mousetrapping” consumers.

Beales said that in a ploy designed to capture teenage Internet users, Zuccarini registered 15 variations of the popular children's cartoon site, www.cartoonnetwork.com – for example “cartoon netwok” instead of “cartoon network” and 41 variations on the name of teen pop star Britney Spears.

Beales said that surfers who looked for a site, but misspelled its web address, were taken to the defendant's sites.

“Once consumers arrived, Zuccarini’s websites were programmed to take control of their Internet browsers and force the consumers to view explicit advertisements for pornographic websites, as well as websites advertising gambling and psychic services,” Beales said. “The obstruction allegedly was so severe in this case that consumers often were forced to choose between taking up to 20 minutes to close out all of the Internet windows, or turning off their computers, and losing all of their ‘pre-mousetrap’ work.”

After being sued, Beales said Zuccarini disappeared but was later found and convicted.

As for file-sharing programs, Beales said filters that block access to materials that contain adult-related or offensive content, “operate by only examining language found in the title or descriptor of the file, rather than the content of the file.”

Moreover, Beales said, the filters “may not be effective when users label files inaccurately, which can result in the transfer of files with pornographic or other unwanted content.”

The FTC was one of many federal agencies or groups asked to testify before the subcommittee.

Beales was joined by the FBI’s Kevin Lourdeau; Linda Koontz of the General Accounting Office; Charlie Catlett of the Senior Fellow Computation Institute; Martin C. Lafferty of the Distributed Computing Industry Association; Norbert Dunkel of the University of Florida; Penny Nance of the Kids First Coalition; and Ernie Allen of the National Center for Missing and Exploited Children.

Copyright © 2026 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

Megan Mistakes, Scarlett Alexis Topline Latest 'My Lesbian Masseuse'

Megan Mistakes and Scarlett Alexis headline the second volume of “My Lesbian Masseuse,” the latest release from Girlfriends Films.

Lucy Mochi Makes Her Kink.com Debut

Lucy Mochi has made her Kink.com debut alongside John Paul the Pope in "Newbie Gets the Full Treatment."

Erotica Divine, Derek Kage Lead Latest From TransAngels

Erotica Divine and Derek Kage star in the latest release from TransAngels, titled "Steamy Soak."

AV Bulletin: Midyear Roundup

Since the U.S. Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. Meanwhile, lawsuits resulting from AV laws have begun to play out in the courts. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Savvy Suxx Performs 1st Gangbang for WIFEY

Savvy Suxx performs her first gangbang in the latest release from Vixen Media Group studio imprint WIFEY.

Princess Emily Makes Her Evil Angel Debut

Princess Emily has made her debut for Evil Angel alongside director Richard Mann.

Alina Lopez Performs 1st Anal in Her Tushy Debut

Alina Lopez has performed her first anal scene in her debut for Vixen Media Group studio imprint Tushy, alongside Milan Ponjevic.

Lilith Grace Makes Her Blacked Raw Debut

Lilith Grace has made her debut for Vixen Media Group studio imprint Blacked Raw, alongside Ashley Lane and Jason Luv.

Jennifer White, Octavia Red & Jewelz Blu Star in 'Red, White & Blu' Sequel From Elegant Angel

Reigning XMAs Female Performer of the Year Jennifer White stars with Octavia Red and Jewelz Blu in the sequel to Elegant Angel’s Fourth of July-themed featurette "Red, White & Blu."

Desiree Dulce Is Hustler's 'Cover Honey' for July

Desiree Dulce is the Cover Honey for the July issue of Hustler Magazine and appears in a 14-page centerfold spread shot by ThisYearsModel.com.

Show More