Alyon Settles With States Over Online Billing

SECAUCUS, N.J. — Alyon Technologies Inc. has entered into a consent agreement with nearly two dozen states and will refund online adult consumers who paid bills but submitted complaints about them before June 2003.

The company, accused of linking unwitting Internet users to pop-up images and billing them for services not requested by consumers, also agreed to cancel debt and halt collection activities, according to New Jersey Attorney General Peter Harvey. The agreement prohibits Alyon from billing minors for its Internet services.

In addition, Secaucus, N.J.-based Alyon is required to implement a verification program titled “Expressly Verifiable Authorization” for all future Internet transactions. The company also must present ``clear and conspicuous'' information about terms and conditions, including information on charges and how to contact Alyon.

“Internet businesses certainly have a duty to act responsibly and within the law, but consumers also need to protect themselves by being extra vigilant about what they are ‘clicking on’ when surfing the web, and about sharing credit card and other personal data,” Harvey said. “Although the Internet can be a great tool for entertainment, communication and research, it is also fraught with potential dangers and headaches for consumers and their children.”

The states 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, Alyon captured the telephone number used by the modem and matched it against several databases of line subscriber information, officials say.

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 services were purchased, regardless of whether the line subscribers authorized the purchase.

Harvey said in a statement that more than 700 consumers complained about being billed an average of $150 for online adult content they never requested or accessed.

The Federal Trade Commission, which also received complaints about Alyon, estimates that more than 200,000 people were affected. Alyon agreed to forgive $17 million in bills under a separate agreement with the federal government.

Alyon President Stephan Touboul could not be reached by XBiz for comment Friday.

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

Adult Chat Platform Arousr Sets Human-Only Host Policy

Adult chat platform Arousr has announced a policy to only use verified human hosts, not chatbots.

Arizona State Legislator Proposes Porn Ban

A member of Arizona’s House of Representatives on Wednesday introduced a bill that would make it illegal to produce or distribute adult content in that state.

SinfulXAI to Launch New AI Generator

AI companion platform SinfulXAI has announced its new AI video generator, launching in February.

SCOTUS Won't Hear Appeal in NYC Adult Businesses Zoning Case

The U.S. Supreme Court has declined to hear an appeal by a group of adult businesses of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

AEBN Publishes Popular Searches for November, December

AEBN has published the top search terms for November and December from its straight and gay theaters in all 50 states and the District of Columbia.

X3 Expo Day 2 Delivers Stars, Screenings and Fan Favorites

The sun once again shone brightly on the historic Hollywood Palladium as throngs of avid fans made their way through the doors, ready to experience Day 2 of the 2026 X3 Expo.

X3 Expo Kicks Into Gear With an All-Star Lineup

Outside the historic Hollywood Palladium on Friday, a huge crowd of fans lined Sunset Boulevard, eagerly awaiting the opening of the 2026 X3 Expo and their big chance to meet the cream of the crop of adult stars.

2026 XBIZ Honors Salutes Resilience Across the Online Adult Industry

The 2026 XBIZ Honors packed house Wednesday night, turning the Kimpton Everly Hotel’s Nichols Ballroom into a gala celebration of industry excellence.

Elevated X Integrates CCBill for Payment Processing

Elevated X has added CCBill payment processing integration to its ELXNexus traffic management and affiliate software.

Florida Congressman Files Latest Bill to Repeal Section 230

Rep. Jimmy Patronis of Florida has become the latest member of Congress to propose legislation that would repeal Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Show More