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(WEB HOST INDUSTRY REVIEW) -- After the US Federal Trade Commission (www.ftc.gov) effectively pulled the plug on web host 3FN in early June for alleged distributor of spam, child pornography, and other illegal content, a mid-size Spanish pornography company that operates affiliate programs said the shutdown has cost its legitimate business $5,000 a day.
According to adult trade publication XBIZ.com, New Concept Business S.L. (www.newconceptbusiness.com) said its business has nearly ground to a halt after a US judge signed an injunction against San Jose-based Pricewert, which operated 3FN. Since the court ruling, New Concept Business, which operates nearly two dozen adult websites and affiliate programs Etu-Cash.com and Cash.Pornocruto.es, has seen many of its websites go offline or become sluggish and no longer profitable.
It has also been losing money from chargebacks and refunds, and its relationships with partners have deteriorated.
Bay State Legal Services attorney E. James Perullo, who represents New Concept Business, told XBIZ.com that it's a case where the baby is thrown out with the bathwater.
"Though the underlining cause for the FTC's action is admirable, their shotgun approach -- no, their howitzer-while-blindfolded approach of protecting American consumers -- is in the midst of destroying hundreds and possibly thousands of companies that host their businesses on those servers," Perullo told XBIZ.
Since the FTC's actions, Pricewert has spoken out against the FTC's claims that it knowingly hosts, and actively participates in the distribution of spam, phishing schemes, botnets, child pornography, and other harmful electronic content, and accused the FTC of providing no prior warning to its shutdown. In an effort to help minimize issues from at least 20 third parties, including New Concept Business, the FTC recently issued an order appointing a temporary receiver for the Pricewert data center.
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Read Back Issues of WHIR Magazine
October 2009 - Web Hosting's All Star Team
This has been, for us, one of the most interesting, exciting and challenging build-ups to an issue of the magazine yet, Web Hosting's All Star Team. The balloting process was our first experiment with a kind of user participation we're planning to do a lot more with in the months to come. We had thousands of ballots submitted, with hundreds of write-in suggestions and a demonstration of user engagement that has us feeling super positive about the project.
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July 2009 - What am I Worth?
One of the interesting luxuries of working on a project like the printed WHIR magazine is that it allows us to play with things like our point of view from one issue to the next. In recent months we've been giving added attention to the kind of practical and applicable advice aimed at smaller hosts and resellers. This issue carries on with that point of view, asking, in our cover story, "what am I worth?" It's a complicated question without a clear-cut answer.
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May 2009 - The Blueprint for a Small Web Host
I was a little surprised by how difficult it became to see this idea through. We set out to assemble a blueprint for a small hosting business, but butted up pretty quickly against the general impossibility of covering all the territory that was out there to be covered. The basic constraints of a printed magazine, and the less-than-infinite amount of time we had available forced us to face the fact that we could never produce an exhaustive guide to starting a hosting company.
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