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

Ameena Green on Delayed Gratification and Finding her 'Synthesis' Moment

In an industry that sometimes moves at breakneck speed, Ameena Green is taking it slow.

Pearl Industry Network Launches 'TrustLink' Verification Platform for Creators

Trade group Pearl Industry Network (PiN) has launched TrustLink, its free verification platform for creators.

Juliana Marie Makes Her West Coast Productions Debut

Juliana Marie has made her debut for West Coast Productions (WCP), alongside Jovan Jordan, in the studio’s latest release, titled “The Monster Tamer.”

Krystal Sparks, Nicky Huntsman & Natalia Starr Front 'Austin Powers' Parody From MYLF

Krystal Sparks, Natalia Starr, and Nicky Huntsman star with Quinton James in a new “Austin Powers” parody from MYLF.

Scarlet Chase Stars in 'Slippery Sloppy Slut' From SecretCrush

Evil Angel has released the latest scene from Scarlet Chase's SecretCrush brand, titled "Slippery Sloppy Slut."

UPDATED: Supreme Court Rejects Tariffs, Trump Responds

The U.S. Supreme Court on Friday ruled against the Trump administration’s sweeping tariffs, which have significantly impacted the pleasure industry, prompting the president to announce a new tariff strategy as a workaround.

Ricky's Room Releases New Title 'Gemini's Room'

Ricky’s Room has released its Baby Gemini showcase, "Gemini’s Room," on DVD.

Candee Licious, Zazie Skymm Star in Latest From MixedX

Candee Licious and Zazie Skymm star in the latest release from MixedX, titled “The Other Memory.”

FSC Updates Complaint in Tennessee AV Case, AG Motions to Dismiss

The Free Speech Coalition this week filed an amended complaint in its lawsuit challenging the Protect Tennessee Minors Act as unconstitutional, in response to which the Tennessee attorney general motioned for dismissal of the case.

Show More