FTC Settles With Adult Website Operators Over Affiliates’ Spam

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.

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

Seoul Authorities Force Cancellation of Adult Expo for 'Distorting Perceptions of Sex'

After Seoul authorities repeatedly prevented 2024 KXF The Fashion from finding a suitable venue, event organizers have canceled the popular Korean adult industry expo, which was scheduled for this week.

FSC to Hold Discussion on Adult Industry Rights With Congressional Candidate Joe Cohn

Free Speech Coalition will hold a virtual discussion with Joe Cohn, a strong advocate for the adult industry’s rights who is running for Congress in November.

Democratic Governor Fails to Veto Kansas Age Verification Bill

Kansas’ Democratic governor, Laura Kelly, expressed strong reservations about the state’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists, but ultimately decided not to veto it, allowing the legislation to become law by default without her signature.

FSC's Alison Boden Testifies Against California Age Verification Bill, Urges Action to Defeat It

Free Speech Coalition Executive Director Alison Boden testified Tuesday against AB 3080, California’s version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

Phoenix Marie Sues Aylo, Danny D Over Incident on Digital Playground Set

Phoenix Marie has filed a lawsuit against Aylo, performer/producer Danny D and other defendants, alleging she has suffered defamation and damage to her career over a 2023 incident on a Digital Playground set in Spain.

Atlanta Authorities Renew Attack on Adult Boutique Tokyo Valentino

The saga of beleaguered Georgia adult boutique Tokyo Valentino continues with a renewed attempt by authorities to shut down another of its locations.

MomPOV Producer Pleads Guilty in GirlsDoPorn Case

MomPOV producer Doug Wiederhold, who was formerly the partner of GirlsDoPorn owner Michael Pratt as well as the first male talent for GDP, pleaded guilty Thursday to a federal conspiracy charge.

Streamate Exec Liz Rek Joins FSC Board

The Free Speech Coalition board of directors has tapped Streamate executive Liz Rek as its newest member, effective immediately.

FSC Asks Supreme Court to Overturn 5th Circuit Decision, Strike Texas' Age Verification Law

Free Speech Coalition (FSC) filed a petition for certiorari on Friday asking the U.S. Supreme Court to overturn the Fifth Circuit panel decision that partially upheld Texas’ controversial age verification law.

Details Emerge About Capture, Arrest of GirlsDoPorn's Michael Pratt

Further details have emerged in the past week about the capture and arrest of GirlsDoPorn owner Michael Pratt in Spain in December 2022, following his extradition to the U.S. last month.

Show More