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

Playboy Partners With Creator Platform Tango

Playboy has partnered with creator platform Tango, introducing Playmates to the livestreaming service.

Anti-Porn Senator Introduces Federal Age Verification Bill

U.S. Senator Jim Banks of Indiana, who last month urged the Department of Justice to ramp up obscenity prosecutions, on Wednesday introduced a bill that would make age verification by adult websites federal law.

Alanna Pow Stars in Latest From Brazzers

Alanna Pow stars with Dwayne Foxxx in the latest release from Brazzers, titled "Skin Tight and Fucked Right!"

AEBN Publishes Popular Searches by Country for April, May

AEBN has released the list of popular searches from its straight and gay theaters, by country, for April and May.

Amalia Davis, Leya Desantis Star in Latest From SexArt

Amalia Davis and Leya Desantis star in the latest release from MetArt studio brand SexArt, titled "My Treasure."

Ondato Joins Pineapple Support as Sponsor

Age and identity verification company Ondato has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Jewelz Blu Stars in Latest Gangbang From Ricky's Room

Jewelz Blu stars in a new gangbang scene from Ricky's Room, titled “Every Hole Is The Goal.”

Alexis Fawx, Armani Black Make Their Bellesa Plus Debuts

Armani Black and multi-XMAs winner Alexis Fawx have made their Bellesa Plus debuts alongside John Legendary in the latest episode of the studio’s “Blind Date” series.

DomCon LA Cracks the Whip on Community and Kink Education

As DomCon attendees packed up their paddles and checked out of the LAX Hilton following a long weekend of play parties, classes, and high-impact reunions with old friends, it was easy to tell who was there for the 23rd year of LA’s premier BDSM gathering and who was a business traveler from Cleveland who happened to be in the weird place at the right time.

Reptyle to Debut MYLF's 1st Serialized Release 'Motherfucker'

Reptyle will premiere MYLF’s first serialized release, “Motherfucker,” starting Friday.

Show More