The sites offered visitors “free tours” subject to them submitting their credit card details, supposedly to verify their age. According to Bloomberg News, if the visitors clicked past the fifth screen, their cards were charged the sum of $1.50 per day.
According to court papers in a recent civil suit filed by the Federal Trade Commission and the New York Attorney General’s Office, the sites generated revenues of over $141 million in 1999 alone. Refunds of almost $100 million were made to customers who complained of wrongful charges. However, even with refunds, the collection of sites made over $196 million over a four year period.
The extent of the fraud is estimated by the FTC to be in the region of $120 million.
See also:
Web site fraudsters to pay $37.5 million for illegal billing, OUT-LAW News, 08/09/2000
US authorities take action against porn sites for illegal billing, OUT-LAW News, 25/08/2000