(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.
