In Big Crackdown, FTC Charges 7 Online Adult Companies

LOS ANGELES — In its most aggressive crackdown to date, the Federal Trade Commission accused seven companies on Wednesday of hiring affiliates to send spam emails to tempt surfers into visiting adult sites.

Four of the online adult companies have already agreed to pay nearly $1.2 million to settle charges that they violated the Can-Spam Act.

BangBros.com Inc. of Miami, agreed to pay $650,000; MD Media of Bingham Farms, Mich., will pay $238,743; APC Entertainment Inc. of Davie, Fla., will pay $220,000; and Pure Marketing Solutions LLC of Miami and Internet Matrix Technology of New Orleans will together pay $50,000, the FTC said.

BangBros.com owns Ox Ideas; MD Media is parent company of Pimproll; Pure Marketing owns nearly two dozen adult sites, as well as the Pure Cash affiliate program; and APC operates AdultPlayersClub.com.

The three other companies include Tucson, Ariz.-based Cyberheat/Top Bucks; Seattle-based Impulse Media Group, which operates SoulCash.com; and TJ Web Productions LLC of Henderson, Nev.

The FTC said it directed the Justice Department to file civil lawsuits against those three. The suits will seek unspecified payment to the government for every Can-Spam violation.

Cyberheat, in an open letter on GFY.com Wednesday, denied the charges by regulators.

“We would like to proclaim publicly and vehemently deny any and all accusations that Cyberheat Inc. knowingly participated in any email campaigns that violated the Can-Spam Act,” the letter said.

“We find that the FTC’s motives in this instance are not to stem the flow of illegal spam, but rather to generate money and force companies like ours to police our affiliates with extreme measures and take on unnecessary liabilities.

“We have been explicit in our communications that we have zero tolerance for webmasters who do not comply with FTC regulations and the Can-Spam Act. In our case, the FTC has admitted that they are attempting to make our company liable for affiliates who have broken the Can-Spam law and violated our terms. We are confident that we have done due diligence to banish Can-Spam violators and that the law clearly is on our side.”

Impulse Media founder and CEO Seth Schermerhorn told the King County Journal that he should not be held liable for the actions of spammers who he said are acting on their own.

"I'm not so much worried about being fined [by the FTC] but about how much it's going to cost to prove my innocence,'' he said.

In the seven individual complaints, the FTC said the companies did not send emails directly to consumers but operated affiliate programs, paying others to send unwanted messages to drive Internet traffic to adult websites.

Regulators said that under Can-Spam defendants in such cases are liable because they paid others to send emails on their behalf.

In the case of MD Media, for example, the FTC alleged that the company “provided monetary payments and other consideration to third-party affiliates, including, among others, Montana Marketing Networks, Galio Ltd., Jinhau Dai and SED Group, for consumer memberships resulting from website hyperlinks and links in commercial email messages.”

Regulators said the email messages were not prominently marked "sexually explicit," did not include instructions for consumers to block future emails and did not include a postal address, all required under Can-Spam, also known as the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003.

Copyright © 2024 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

CAM4 Debuts Weekly 'Skyy Knox's CAM Crawl' Livestream

CAM4 is launching "Skyy Knox’s CAM Crawl," a new livestream running every Sunday at 3 p.m. PDT.

Texas Judge Pauses AG Ken Paxton's Aylo Lawsuit Until SCOTUS Decision

A Texas district judge granted a request Wednesday to pause proceedings in the lawsuit filed by Attorney General Ken Paxton against Aylo over its implementation of Texas’ controversial age verification requirements for Pornhub, pending the outcome of the Free Speech Coalition-led lawsuit against Paxton, which will be heard by the Supreme Court during the next term.

Author of UN Report Recommending Worldwide Criminalization of Sex Work, Porn to Speak at NCOSE Summit

Jordanian activist Reem Alsalem, a special rapporteur on violence against women and girls at the United Nations Human Rights Council who recently issued a controversial report recommending that governments abolish all forms of sex work, including porn, will speak at anti-porn lobby NCOSE’s 2024 summit in August.

Spicey AI Voice Chat Platform Launches

Spicey AI, a platform that uses artificial intelligence to create interactive voice messages from chatbots based on adult performers, has launched.

Derek Hay Sentencing Hearing: Performers Give Impact Statements

The first day of the sentencing hearing for LA Direct Models’ Derek Hay, who pleaded guilty in May to one charge of conspiracy to commit pandering and a charge of perjury, took place in Los Angeles Wednesday.

Utherverse to Host 8th Annual VirtualCon in September

Virtual reality and metaverse technology company Utherverse will hold the eighth edition of its annual virtual conference, VirtualCon, from Sept. 26-28.

Pornhub Shuts Down Access in Nebraska Over Age Verification

Aylo began blocking access to Pornhub in Nebraska on Monday, in anticipation of the state’s new age verification law — one of many such bills promoted by religious conservatives around the country — which is scheduled to go into effect Thursday.

FeelMe AI Launches 3 New Subscription Tiers

FeelMe AI has launched three new subscription levels, allowing users to connect compatible Kiiroo sex toys to their videos for interactive solo play.

CamSoda Launches AI Girlfriend Builder

CamSoda has debuted a personalized "AI girlfriend" feature, which allows users to create their very own virtual companion at no charge, including free NSFW role-play and chat.

Free Speech Organization Comes Out in Support of Wisconsin Professor Who Posted on OnlyFans

After a University of Wisconsin-La Crosse faculty tribunal recommended stripping veteran professor of communications Joe Gow of tenure last week due to Gow having unremorsefully created and appeared in adult content, a major free speech organization has come out in his support.

Show More