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 © 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

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.”

NC Governor Vetoes Bill Targeting Adult Industry, Override Possible

North Carolina Governor Josh Stein today vetoed a bill imposing new regulations that adult industry observers have warned could push adult websites and platforms to ban most adult creators and content.

25,000 Sign Petition to Legalize Pornography in Ukraine

An OnlyFans model’s petition to decriminalize pornography in Ukraine has amassed the 25,000 signatures required for official consideration by President Volodymyr Zelensky.

FSC Unpacks SCOTUS Age Verification Ruling in Webinar

The Free Speech Coalition conducted a public webinar Tuesday to help adult industry stakeholders understand the Supreme Court’s recent decision in FSC v. Paxton, and its potential implications.

UK Lawmaker Calls for Appointment of 'Porn Minister'

Baroness Gabrielle Bertin, the Conservative member of Parliament who recently convened a new anti-pornography task force, is calling for the appointment of a “minister for porn,” according to British news outlet The Guardian.

FSC Toasts Jeffrey Douglas for 30 Years of Service

n the very same evening when the adult industry was hit hard by the Supreme Court ruling supporting Texas’ controversial age verification law, HB 1181, members of the Free Speech Coalition board, staff and supporters gathered to celebrate Jeffrey Douglas’ 30 years as board chair — a fitting reflection of his reputation as an eternal optimist.

FSC: Age-Verification Laws Go Into Effect in South Dakota, Georgia, Wyoming on July 1

The Free Speech Coalition (FSC) has published a statement regarding new age verification laws set to go into effect tomorrow in South Dakota, Georgia, and Wyoming.

Show More