North Carolina House Bill 805 An act originally aimed at combating sexual exploitation in the…
Legal and Operational Policies
The adult entertainment industry is navigating a complex and rapidly changing legal environment. A confluence of new age verification legislation, high-profile private lawsuits, a landmark FTC order against Aylo (formerly MindGeek), and evolving credit card processing rules has created an urgent need for all industry participants — from major platforms to independent creators — to completely overhaul their legal and operational policies. The old way of doing business is no longer a viable option. Action must be taken now to avoid potential catastrophic consequences.
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The Tsunami of Age Verification Legislation
Over the past few years, a growing number of U.S. states and countries have passed laws requiring commercial entities to implement “reasonable” age verification methods to prevent minors from accessing content “harmful to minors.” While these laws vary, they typically mandate robust systems for age assurance, and the penalties for non-compliance can be severe, including substantial fines and civil litigation. The trend is exemplified by Florida’s HB 3, which took effect in January 2025. This law has prompted the Florida Attorney General to file a lawsuit against several major adult content providers for failing to comply with its age verification requirements. Similarly, the Texas Attorney General’s office has been aggressively enforcing its state’s age verification laws, and the U.S. Supreme Court has recently upheld the constitutionality of these laws, making it clear that a site’s First Amendment defense against such regulations is no longer a guaranteed shield. These legal actions serve as a stark warning: state governments are not only passing these laws but are actively enforcing them through the courts, making the risk of non-compliance very real.
This push for accountability is also a global phenomenon. In the United Kingdom, the landmark Online Safety Act (OSA) has given Ofcom, the nation’s communications regulator, sweeping powers to hold online platforms accountable. The OSA requires services that host or publish pornography to implement “highly effective” age verification to prevent children from accessing the content. Ofcom has been actively launching enforcement investigations into multiple platforms that have failed to meet these new standards. The regulator’s actions, which can lead to fines of up to £18 million or 10% of a company’s global revenue, signal a serious commitment to enforcement. France has also joined this movement with its SREN Law (Securing and Regulating the Digital Space), which empowers its regulatory body, Arcom, to enforce new age verification standards. The SREN Law is particularly notable for its requirement for “double anonymity,” ensuring that the age verification provider does not know which sites a user visits, and the sites themselves do not know the user’s identity. This global shift means that a one-size-fits-all legal strategy is no longer viable. Companies must now navigate a patchwork of different — and often conflicting — national and regional laws, requiring them to tailor their terms, policies, and operational procedures to each jurisdiction.
The implications for legal documents are profound. Terms of service and user agreements must now explicitly outline the age verification process, detailing what data is collected, how it is used, and, critically, that it will not be retained after access is granted, as many of these laws forbid the retention of such information. Similarly, a site’s privacy policy must be updated to reflect these new data collection practices and the commitment to protecting user privacy. This is a delicate balance, as platforms must both verify age and avoid creating a massive, and potentially vulnerable, database of sensitive user information.
The Aylo FTC Order: A New Standard of Accountability
The Federal Trade Commission’s (FTC) order against Aylo, the parent company of Pornhub, sets a precedent for how content platforms must handle illicit material. The FTC alleged that Aylo deceived users by failing to prevent the distribution of Child Sexual Abuse Material (CSAM) and Non-Consensual Material (NCM). The resulting settlement mandates that Aylo implement a robust program to prevent and remove such content.
This order is a wake-up call for the entire industry. Websites and platforms must now ensure their policies and procedures go beyond mere lip service. This means updating terms to explicitly state a zero-tolerance policy for CSAM and NCM, and more importantly, detailing the proactive and reactive measures in place to enforce it. For user-generated content platforms, this includes a clear and efficient reporting mechanism and a process for quickly responding to and removing flagged content. The Aylo order highlights the need for companies to not only have policies in place but to demonstrate their effective implementation.
Private Litigation and the Evolution of Model Releases
The threat of private litigation has also been a major catalyst for change. Lawsuits against platforms and performers, often related to the unauthorized sharing of intimate images (so-called “revenge porn”) and alleged human trafficking, have underscored the need for ironclad documentation.
Model releases and consent forms, which have long been a cornerstone of the industry, must be meticulously updated. They must now include highly specific and granular consent clauses that go far beyond a simple blanket release. North Carolina’s HB 805, for example, is a prime illustration of this trend. The law requires websites to obtain explicit written consent not just for a performer’s general participation, but for each individual sexual act depicted and for the subsequent distribution of the content. It also grants performers a “right to removal,” allowing them to request content be taken down at any time, regardless of prior consent, with a 72-hour removal mandate for the platform. These forms should also explicitly state that the performer is of legal age and that their participation is voluntary. The new legal reality demands that consent is not just documented but is demonstrably informed and ongoing.
The Worldwide Crackdown: Global Regulations Take Shape
The regulatory push is not confined to the United States. Governments and international bodies around the world are implementing a global crackdown on the adult entertainment industry, reflecting a growing consensus on the need to protect minors and combat illicit content.
The European Union, for instance, has leveraged its Digital Services Act (DSA) to impose stricter obligations on “very large online platforms,” which now include major adult content sites. These sites are being compelled to implement robust age verification measures to shield minors from explicit material. France and the United Kingdom have also passed their own stringent laws, with France’s new regulations requiring “double anonymity” in age verification to protect user privacy, and the UK’s Online Safety Act aiming to hold platforms accountable for the harms of “priority illegal content.” This global shift means that a one-size-fits-all legal strategy is no longer viable. Companies must now navigate a patchwork of different — and often conflicting — national and regional laws, requiring them to tailor their terms, policies, and operational procedures to each jurisdiction.
Privacy Policies: A Reckoning with Data Privacy Laws
Most adult entertainment websites operate with privacy policies that are woefully out of date, failing to meet the rigorous standards of modern data privacy legislation. As the European Union’s General Data Protection Regulation (GDPR), the California Privacy Rights Act (CPRA) and various other state laws in the United States have fundamentally changed how companies must handle user data. These laws are not mere suggestions; they come with substantial financial penalties and are actively being enforced.
A modern, compliant privacy policy must do more than simply state that a site collects data. It must provide clear and concise information about:
- Data Minimization: What personal data is being collected and why? Policies must be explicit about the necessity of data collection and demonstrate that the site is not collecting more information than is absolutely required for its stated purpose.
- The Right to Be Forgotten: Users, especially those in the EU and California, now have the right to request that their personal information be deleted. A website’s policy must outline this right and provide a clear and accessible mechanism for users to submit such a request.
- Opt-In vs. Opt-Out: Under the GDPR and CPRA, consent for data collection, particularly for “sensitive personal information” like geolocation or biometric data, often requires an explicit opt-in, not a pre-checked box. Privacy policies must reflect this change and provide users with a granular level of control over their data.
- Data Portability and Correction: Users have a right to access their data in a portable format and to request corrections if it is inaccurate. The privacy policy must clearly state these rights and provide instructions on how they can be exercised.
For an industry built on anonymity and privacy, these new regulations present both a challenge and an opportunity. A compliant privacy policy is no longer just a legal document — it’s a statement of trust that is now required by law.
The Perils of Outdated Legal Documents
The most immediate and severe consequence of failing to update legal documents is a dramatic increase in legal and financial risk. Relying on old terms of service, model releases, and disclaimers is a recipe for disaster. These documents are often riddled with vague language, pre-date crucial laws like the GDPR and CPRA, and fail to address modern concerns like non-consensual content and detailed consent.
The repercussions can be devastating:
- Discredited Defenses: If a company faces litigation, an outdated model release or consent form can be easily challenged in court. A performer could argue that they did not provide specific, informed consent for a particular act or distribution platform, leaving the company without a credible legal defense.
- Regulatory Fines: Data privacy regulators, such as those enforcing the GDPR, can impose fines of up to 4% of a company’s global annual revenue for privacy violations. An outdated privacy policy that fails to adequately protect user data is a prime target for such enforcement actions.
- Loss of Payment Processing: As detailed earlier, credit card companies are now requiring a verifiable paper trail for all content. A company that cannot produce detailed, legally sound model releases and consent forms will likely have its payment processing terminated, effectively shutting down its business.
- Erosion of Public Trust: Beyond legal and financial penalties, the failure to update policies signals to performers and users a disregard for their safety and privacy. This can lead to a loss of trust, reputational damage, and a decline in user engagement and business viability.
In this new legal environment, the use of a simple, boilerplate legal disclaimer is no longer a safeguard. It is a liability.
Credit Card Processing Rules: A Financial Mandate for Compliance
Major credit card companies like Visa have introduced stricter rules for merchants in the adult entertainment industry. Visa’s Integrity Risk Program (VIRP) now requires adult merchants to meet stringent compliance standards to process payments. These new requirements include age and identity verification for all performers, robust content moderation, and detailed consent records.
This is not a matter of choice; it’s a condition of doing business. Websites and platforms must now update their internal record-keeping to satisfy these new rules. This means having a verifiable system for confirming a performer’s age and identity and storing signed, detailed consent forms in an organized and secure manner. The financial lifeline of a company now depends on its ability to demonstrate compliance with these new, more demanding processing rules.
Wrap-Up and The Path Forward
The collective impact of these legal, financial, and regulatory shifts is a complete paradigm change. The adult entertainment industry is being forced to mature and adopt a level of legal rigor and corporate responsibility that was previously lacking in many sectors. Updating legal documents — from user terms and privacy policies to model releases and performer contracts — is no longer a box-ticking exercise. It is a fundamental necessity for survival. Companies that fail to adapt risk not only fines and litigation but also the very ability to operate and process payments. Ignoring this imperative is a massive and dangerous mistake. The initial costs of becoming compliant — investing in legal counsel to draft new policies, implementing robust age verification technology, and establishing secure data storage for releases — are insignificant when compared to the devastating financial and reputational fallout of a regulatory action or private lawsuit. A single, high-profile case could result in millions of dollars in legal fees, multi-million-dollar fines, and crippling settlement costs that could force a company into bankruptcy. The time for a comprehensive legal overhaul is now.
This article does not constitute legal advice and is provided for your information only and should not be relied upon in lieu of consultation with legal advisors in your own jurisdiction. It may not be current as the laws in this area change frequently. Transmission of the information contained in this article is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver.
About Silverstein Legal
Founded in 2006 by adult entertainment lawyer Corey D. Silverstein, Silverstein Legal is a boutique law firm that caters to the needs of anyone working in the adult entertainment industry. Silverstein Legal’s clients include hosting companies, affiliate programs, content producers, processors, designers, developers, and website operators.
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