Home > News > FTC Settles With Adult Website Operators Over Affiliates’ Spam • Bookmark   • Newsletters   • Register Search Options


FTC Settles With Adult Website Operators Over Affiliates’ Spam

FTC Settles With Adult Website Operators Over Affiliates’ Spam
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
Yes, but in a few years
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.
Jan 30, 2007 12:28 PM PST    Text size: 
WASHINGTON — The Federal Trade Commission and the Justice Department have announced a Dec. 7 settlement in a civil case filed against TJ Web Productions for liability incurred when its affiliates allegedly used pornographic spam to promote the company’s paysites.

TJ Web Productions attorney Clyde Dewitt told XBIZ the parties had actually reached an agreement as early as June 2006, but it took several more months for the U.S. District Court in Las Vegas to enter the judgment.

Under the terms of the stipulated judgment entered into by the parties, TJ Web Productions agreed to pay a civil penalty of $465,000, the bulk of which is payable by the defendants over three years.

The company also is permanently enjoined from violating either the CAN-SPAM Act or the FTC’s Adult Labeling Rule.

“Although TJ Web Productions did not send the email directly to consumers, the Nevada-based company operated an affiliate marketing program and induced others, by monetary payments and other considerations, to transmit commercial email messages on its behalf,” an FTC release said.

The agreement also calls for TJ Web to obtain agreements from prospective affiliates saying that they will comply with the terms of the court order.

Dewitt said liability for affiliate programs is an ongoing problem because there is no foolproof way to stop affiliates from using spam to promote paysites. However, Dewitt said he believes many spammers have opted to pursue more lucrative products such as Viagra, investments and phishing schemes.

“Whatever CAN-SPAM was meant to do, it isn’t working,” Dewitt said. “The law ambushed the adult industry and for a while it took affiliate programs some time to figure out how to cope. U.S. affiliate programs, including TJ Web, have clamped down on the problem and terminated affiliates who spam. Yet, spam has doubled in the past year.”

The FTC filed its complaint against TJ Web Productions in July 2005. At the time, the government also filed suit against six additional companies, charging similar violations of the Adult Labeling Rule and the CAN-SPAM Act.

To date, the FTC has settled with five of the seven total companies identified in the 2005 crackdown. Total settlements have netted more than $1.6 million in civil penalties.

Under the Adult Labeling Rule and CAN-SPAM, commercial emailers must use the phrase “sexually explicit” in the subject line of the email. Commercial emailers are also required to give recipients a method to opt out if they choose not to receive the messages.

TJ Webb Productions is the parent company for Adultpaymaster.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


2017 XBIZ Trans Performer of the Year Reigns Supreme

It’s easy to see Aubrey Kate now — the modelesque, blonde bombshell — and dismiss her recent awards in the erotic arts as inevitable. It’s easy to say that she was simply born with... More »

WIA Profile: Carmen Miller-Branch

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

Sílvia Unfurls Models’ Wings at Angels Studio

Sílvia seamlessly threads a profitable patchwork of loyal models and premium networks at Angels Studio. Wielding a multi-faceted perspective forged by six years of service at premier cam network... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.


XBIZ Retreat

May 30 - Jun 03
Miami, Florida

XBIZ Miami 2017

May 30 - Jun 02
Miami, Florida

XShow 18+ 2017

Jun 01 - Jun 03
Moscow, Russia

Cam Summit

Jun 02 - Jun 04
Lloret de Mar, Spain
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!