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

Lucy Mochi Makes Her Slayed Debut

Lucy Mochi has made her debut for Vixen Media Group studio imprint Slayed, alongside Della Cate.

Platform Pulse: Inside the Technology and Trends Powering the Direct-to-fan Economy

For a brief, glittering moment, the fan-platform boom felt like a modern-day gold rush. The premise seemed simple: Open an account, post some tantalizing content and watch the subscriptions roll in. OnlyFans became a household name, "selling feet pics" became a cultural punchline and creators poured into the market hoping to claim their share of the action.

West Coast Productions Debuts Cory Chase Showcase 'Unleashed Desires'

West Coast Productions has released its latest showcase title, "Cory Chase: Unleashed Desires."

Mayalynn Makes Her WIFEY Debut

Mayalynn has made her debut for Vixen Media Group studio imprint WIFEY, alongside her husband MrJax and Don Sudan.

FSC Sets Dates, Qualifiers for December Board of Directors Election

The Free Speech Coalition (FSC) has published dates and qualifiers for its upcoming board of directors election.

Private Drops 'Pornstars Summer Getaway'

Private has released its latest title, "Pornstars Summer Getaway," directed by Xavi Rocka.

The End Is Coming: Pure Taboo Explores Post-apocalyptic Sex, Survival and Submission in 'The Doctrine'

It's the end of the world as we know it, and Seth Gamble feels fine. On a scorching hot day in the remote mountains of Santa Clarita, Gamble is directing "The Doctrine," an ambitious post-apocalyptic drama for Adult Time's Pure Taboo label.

Aylo Wins Preliminary Injunction Against Utah AV Law's VPN Rule

A federal court on Thursday issued a preliminary injunction preventing the state of Utah from enforcing a legal provision that would make adult websites liable if minors in the state circumvent geolocation efforts in order to bypass age verification.

Avery Lust Leads Latest From TransAngels

Avery Lust stars with Jack Des Feux in the latest release from TransAngels, titled "Hung Waitress."

Emma Rose Toplines 'TS Girls Do It Best 4' From TransSensual

Two-time XMAs Trans Performer of the Year Emma Rose headlines "TS Girls Do It Best 4," from Mile High Media studio imprint TransSensual.

Show More