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

GirlsDoPorn Owner Michael Pratt Pleads Guilty to Sex Trafficking

Michael Pratt, former owner of the rogue website GirlsDoPorn, pleaded guilty in the U.S. District Court for the Southern District of California on Thursday to sex trafficking and conspiracy to commit sex trafficking charges, according to a report by City News Service.

Master Nico Relaunches Site Through YourPaysitePartner

Master Nico has relaunched his official website through YourPaysitePartner (YPP).

Federal Judge Grants Partial Halt of Florida AV Law

The United States District Court for the Northern District of Florida, Tallahassee Division, has granted a preliminary injunction against HB 3, the state's age verification law, as a lawsuit filed by two online trade associations challenging the law makes its way through the courts.

Aylo Releases Statement on Suspending Access to Pornhub in France

Technology and media company Aylo, which operates adult sites including Pornhub, YouPorn, and Redtube, has released a public statement regarding its decision to block access to its sites in France.

Pineapple Support to Host Wellness Sessions at Bucharest Summit

Pineapple Support is hosting free group and one-on-one therapy sessions at Bucharest Summit, June 3-5.

Pornhub Blocks Access in France in Response to SREN Law

Pornhub parent company Aylo has opted to block access to its sites in France rather than comply with age verification requirements under the country’s Security and Regulation of the Digital Space (SREN) law.

ASACP Highlights Study on Parental Controls

The Association of Sites Advocating Child Protection (ASACP) is highlighting the results of a study on the underutilization of parental controls.

Sydney Screams Launches New Site Through Grooby's Blue.xxx

Sydney Screams has launched her new membership site, SydneyScreams.xxx, through Grooby's website management company Blue.xxx.

Mistress Mystii Is LoyalFans' 'Featured Creator' for June

LoyalFans has named Mistress Mystii as its Featured Creator for June.

Canadian Senator Revives Push for National AV Law

Sen. Julie Miville-Dechêne, whose previous multiple attempts to legislate national age verification requirements all failed, has introduced a new bill that would impose fines of up to $500,000 on adult sites that do not implement age verification for Canadian viewers.

Show More