Pornhub owner pays $5M settlement to FTC over historic failure to block abusive content

Aylo, the parent company of Pornhub, has agreed to a $5 million settlement with the Federal Trade Commission (FTC) and the state of Utah. The settlement addresses serious allegations that the company profited from child sexual abuse material (CSAM) and nonconsensual material (NCM). Previously known as Mindgeek, Aylo made significant adjustments to its content moderation policies in late 2020 following a revealing report from The New York Times. This report highlighted the inadequacies of Pornhub in preventing and removing illicit uploads of CSAM and NCM. It wasn't until pressure from credit card companies mounted that Aylo implemented age verification and consent documentation for performers in uploaded videos. Despite these changes, the FTC asserts that Aylo continued to host illegal content and poorly managed users' personal data. The agency claims that Aylo failed to adequately disclose its practices regarding data obtained from a third-party vendor used for identity verification. This data, potentially including sensitive information like Social Security numbers and addresses, was allegedly not stored securely. The FTC criticized Aylo for misleading its models, assuring them that their personal data was secure while neglecting to implement basic security measures. These included a lack of encryption and insufficient access controls to protect sensitive information. Additionally, the FTC's complaint states that Aylo did not effectively enforce its promise to ban users attempting to upload CSAM. Although the company claimed it would use technology to fingerprint such videos, the FTC argues that this system was ineffective for several years, allowing numerous previously flagged videos to be reuploaded. In response to the settlement, Aylo emphasized its commitment to preventing the spread of CSAM and NCM. As part of the agreement, the company is required to ensure the verification of consent and identity for all individuals featured in uploaded content. Furthermore, Aylo must implement new policies and technical measures to prevent the publication of illegal content, along with removing any previously uploaded material that violates these guidelines. Aylo will also undergo independent audits over the next ten years to ensure compliance with the settlement terms. The company stated that the resolution reached enhances existing measures without imposing any new substantial requirements beyond what was already being developed.