Alyon Blasts FTC, May Seek Compensation

NEW YORK – Alyon Technologies Inc. on Tuesday threatened to seek compensation from the Federal Trade Commission if it doesn’t come to “satisfactory” terms in a case against the online adult billing processor.

XBiz has learned that New York-based Alyon has asked for a status conference in U.S. District Court following the FTC’s admission last week that it incorrectly published a press release stating it prohibited the company from billing online adult providers.

Alyon CEO Stephane Touboul claims the FTC’s release on its website was “designed to undermine Alyon’s ability to remain in business.”

Federal regulators said the October release indicated erroneously that the court had prohibited Alyon from “billing, collecting, or attempting to collect payment” for services the company rendered via a deal with providers of online adult content.

The FTC said that the court did not prohibit billing but, instead, set forth the parameters under which Alyon may continue to conduct business.

The FTC and 13 state attorneys general charged last year that Alyon was illegally billing and collecting for videotext services accessed on the Internet.

The regulators claim that Alyon used a modem dialing program that disconnected consumers from their own Internet service providers and reconnected them to the Internet sites Alyon billed for without the consumers’ authorization or approval.

Using the dialing program, the FTC said that Alyon captured the telephone number used by the modem and matched it against several databases of line subscriber information. The agency said the databases frequently contained errors.

The line subscribers identified as responsible for the captured telephone number later received bills charging them $4.99 a minute for each minute the defendants claim videotext services were purchased, regardless of whether the line subscribers authorized the purchase, the FTC said.

The FTC, which did not return phone calls from XBiz on Tuesday, said in a memo last week that “An FTC employee, while handling consumer complaints about Alyon’s billing practices, altered one of the affidavit forms prescribed by the court ... and distributed such altered affidavits to a number of consumers.”

The affidavits included paraphrased explanations of the judge’s ruling, which the company knew to be misrepresentations, Touboul said.

“The FTC’s statements were directly contrary to Judge [R.W.] Story’s order which preserved our right to bill and collect from consumers,” Touboul said. “Once we were made aware of the FTC’s actions, it was clear to us that we needed to bring this matter to the immediate attention of the commission to put a stop to the dissemination of these misleading affidavits.”

Touboul said that Alyon wants to “move forward and potentially enter into a fruitful dialogue to end this case without further litigation.”

But Touboul warned that if a "satisfactory" agreement can’t be reached with the regulators, “Alyon will proceed to vigorously defend itself in court and will pursue its legal rights to seek compensations from the FTC for its admitted wrongful conduct.”

Copyright © 2025 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

Pre-Nominations Now Open for 2026 TEAs

The pre-nomination period for the 2026 Trans Erotica Awards (TEAs) is now open.

FSC Releases Updated Age-Verification Toolkit

The Free Speech Coalition (FSC) has announced the release of its updated age verification toolkit.

Duke Tax Joins Pineapple Support as Supporter-Level Sponsor

Duke Tax has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

UK Moving Ahead with Plan to Outlaw 'Choking' Content

The U.K. government has announced its intent to follow through on criminalizing “choking” content, a plan that was announced earlier this year.

Italy to Require Age Verification for Adult Sites

Italian media regulator AGCOM has announced that all sites and platforms hosting adult content will be required to implement age verification systems starting Nov. 12 to prevent access by users under 18.

'MILFlicious' Launches Through YourPaysitePartner

MILFlicious.com has officially launched through YourPaysitePartner (YPP).

Op-Ed: The Guardian's XBIZ Amsterdam Podcast Dismisses Creators' Experiences

British newspaper The Guardian’s podcast coverage of XBIZ Amsterdam 2025 purports to investigate the power dynamics of today’s online adult industry. Instead, it ignores creators’ voices, airs tired and outdated preconceptions about the business, and rehashes the unsupported claims of anti-pornography crusaders.

Eva Maxim, BranditScan Launch 'Killer' Promo

Eva Maxim and BranditScan have partnered for the Killer Creator Giveaway promotion.

2026 XBIZ Exec Awards Nominees for Online Industry Announced

XBIZ is pleased to announce the nominees for the online industry edition of the 2026 XBIZ Exec Awards, set to be presented as part of the annual XBIZ Honors ceremony on Wednesday, Jan. 14 in conjunction with the XBIZ 2026 digital media conference.

AEBN Publishes Report on POV Trends

AEBN has published a report on POV and gonzo categories from its straight and gay theaters.

Show More