⚖️ Pornhub fined $5M

FTC Forces Pornhub Owner Into $5M Settlement

Aylo, the owner of Pornhub (formerly MindGeek), has agreed to pay $5 million to settle allegations from the Federal Trade Commission and the state of Utah that it profited from child sexual abuse material (CSAM) and nonconsensual material (NCM). The case builds on years of criticism, most prominently after a 2020 New York Times exposé that revealed Pornhub’s failure to police illegal uploads until credit card companies threatened to cut ties. While Aylo eventually introduced age and consent verification requirements, regulators argue the company still failed to prevent reuploads of CSAM and mishandled sensitive personal data collected from performers.

A Pattern of Negligence Meets Legal Reckoning

The FTC’s complaint paints a picture of systemic negligence. Despite promising to protect models’ data, Aylo allegedly stored government ID details—including Social Security numbers and addresses—without basic safeguards like encryption or firewalls. Worse, its CSAM “fingerprinting” tool reportedly failed for years, allowing hundreds of known illegal videos to resurface. Even bans on users uploading CSAM were weakly enforced, only blocking repeat offenders by username or email. The settlement requires Aylo to adopt stronger identity checks, implement effective safeguards, and undergo a decade of independent audits.

Lessons in Trust, Compliance, and Survival

For startups, this case underscores that “trust and safety” isn’t just a PR checkbox—it’s a survival issue. Platforms that monetize user-generated content face mounting scrutiny over data security, consent verification, and proactive removal of harmful material. Regulators are increasingly holding companies accountable not just for what they allow online, but for how they store and protect user data. Startups should take this as a cautionary tale: investing early in compliance, robust security, and credible moderation systems can prevent legal battles that drain resources and permanently damage reputation.

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