Cyberheat Settles With FTC Over Illegal Spam Charges Related to Affiliates

TUCSON, Ariz. — Resolving a case that has been ongoing since 2005, Arizona-based Cyberheat has entered into a settlement with the Federal Trade Commission and the Department of Justice over charges that the company violated federal law by “...illegally expos[ing] unwitting consumers, including children, to graphic sexual content...”

Cyberheat and six other companies were accused of violating several provisions of the CAN-SPAM Act. In addition to this settlement, five of the other cases have been settled, and one company, Impulse Media Group, is still contesting the charges in court.

Under terms of the agreement, Cyberheat will pay a civil penalty of $413,000 and agree to not engage in illegal marketing practices. The company also will be required to monitor its affiliates to ensure that they comply with the law, and the settlement contains bookkeeping and record keeping provisions that allow the FTC to monitor the company for compliance of the terms.

The FTC has never asserted that Cyberheat itself sent illegal spam, but has instead made the claim that “...they operated an ‘affiliate marketing’ program in which they paid others who used spam to drive traffic to Cyberheat’s Web sites.”

The federal agency also claimed that under the CAN-SPAM Act, the defendants were liable for illegal spam sent by their affiliates, “because the defendant induced them to send it by offering to pay those who successfully attracted subscriber[s] to its Web sites.”

Specifically, the FTC charged that affiliate marketers sent sexually explicit email messages that:

  • Violated the Adult Labeling Rule requirements;
  • Violated the requirement to provide a clear and conspicuous opt-out mechanism;
  • and
  • Violated the requirement to provide a postal address.

By entering into this agreement, however, the government acknowledges that Cyberheat has not admitting violating any law.

Related:  

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

New Membership Site 'Sluts Corner' Launches

R18 Entertainment has launched a new membership site, SlutsCorner.com.

Roxie Rae Relaunches Site Through XSiteAbility

Roxie Rae has relaunched her site through XSiteAbility.

Federal Appeals Court Vacates FTC 'Click to Cancel' Rule Pending Review

The U.S. Court of Appeals for the 8th Circuit on Tuesday vacated the Federal Trade Commission’s “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions, pending further review.

NYC Adult Stores Lose Challenge to Zoning Law, May Face Relocation

The U.S. Court of Appeals for the 2nd Circuit on Tuesday upheld a lower court’s decision to allow enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

FSC Drops Florida AV Lawsuit in Wake of SCOTUS Decision

A U.S. district court judge granted on Tuesday a motion by Free Speech Coalition to dismiss the trade association’s lawsuit over Florida’s age verification law, a case that had been on hold pending the Supreme Court’s recent ruling on the constitutionality of state AV laws.

Ukrainian President Responds to Porn Legalization Petition

President Volodymyr Zelensky responded Tuesday to an OnlyFans model’s petition to decriminalize pornography in Ukraine, stating that he would wait for the legislative process to play out “in accordance with established procedure.”

Only Tax Deductions Joins Pineapple Support as Sponsor

Adult industry accounting firm Only Tax Deductions has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Adult Empire Launches 'Conversations' Podcast Series

Adult Empire has launched a new official podcast series hosted by Nicole Chappelle and Charlie.

Sex Work CEO Launches 'Teams Plan' for AI Assistant

Sex Work CEO has introduced the new Teams Plan for its AI-powered, NSFW text generator, GPTease.

2025 XBIZ Amsterdam Website Launches With Call for Speakers

XBIZ is pleased to announce that the website for its annual European conference, XBIZ Amsterdam, is now live.

Show More