Adult Website Operators Face FTC & Utah Crackdown Over Failure to Block Child Exploitation Content

Key Takeaways

• Regulators Target Deception: The FTC and Utah accused Aylo, operator of Pornhub and other sites, of misleading users by claiming it blocked child sexual abuse material (CSAM) and nonconsensual content (NCM) while failing to enforce safeguards.
• $15 Million Penalty Suspended: Aylo faces a $15 million civil penalty, with $5 million payable to Utah and the balance suspended contingent on compliance with the order.
• Strict Oversight Mandated: The settlement requires Aylo to implement a CSAM and NCM prevention program, verify age and consent of all performers, and remove legacy content unless compliance can be proven.
• Privacy Failures Exposed: The company is accused of mishandling sensitive ID data from performers, retaining it indefinitely without encryption or adequate security protections.

Deep Dive

The operators of Pornhub and a network of more than 100 adult websites are facing legal action from the Federal Trade Commission (FTC) and the state of Utah, accused of deceiving consumers while profiting from some of the internet’s most exploitative content.

At the center of the case is Aylo, formerly known as MindGeek, which owns and operates Pornhub, YouPorn, RedTube, and several paid subscription sites. Regulators say the company misled the public by claiming it had strict measures in place to prevent child sexual abuse material (CSAM) and nonconsensual sexual content (NCM) from appearing on its platforms, when in fact, such safeguards were either ineffective or ignored.

The complaint outlines a series of systemic failures, such as Aylo allegedly ignoring flagged content unless it was reported multiple times, failing to block repeat offenders from uploading new accounts, and even promoting material under categories that appeared to encourage abuse. According to regulators, Aylo only began auditing content in earnest after credit card processors threatened to cut ties in 2020, when media scrutiny intensified.

Perhaps most damning, investigators allege that Aylo’s own compliance team was routinely overruled when it tried to remove abusive material, and that the company failed to secure sensitive personal data collected from performers, storing government-issued IDs without encryption or firewalls.

Enforcement Shift

The proposed settlement, filed in the U.S. District Court for the District of Utah, requires Aylo to overhaul its practices. In addition to a $5 million payment to the state of Utah (part of a suspended $15 million penalty), the company must:

• Implement a robust program to detect and prevent CSAM and NCM across all platforms.
• Verify the age and consent of every person featured in uploaded content.
• Remove legacy content unless performers’ identities and consent can be confirmed.
• Establish a comprehensive privacy and security framework to protect user data.

For regulators, the case underscores a willingness to use consumer protection authority against companies that fail to stop exploitative content online. FTC Commissioner Melissa Holyoak, speaking in Salt Lake City, called the alleged misconduct “truly horrific” and warned that the FTC would “use every tool in its arsenal” to prevent similar abuses.

Utah Governor Spencer Cox said the settlement “is an important step in protecting people from some of the most harmful and exploitative material online.”

The case signals a convergence of consumer protection, data security, and content moderation enforcement. Regulators are treating failures to prevent CSAM and NCM not only as a moral crisis but as a form of deception and unfair business practice, opening the door to more aggressive oversight of online platforms.

The action also highlights the critical role of third parties. Financial institutions and payment processors played a decisive role in forcing Aylo to take steps it had long resisted. For companies in high-risk industries, it is clear that regulatory and reputational pressures often come hand in hand with market and financial risks.

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