The U.S. Federal Trade Commission and the Utah Division of Consumer Protection filed a proposed settlement in federal court with Aylo, parent company of Pornhub, alleging the company deceived users and failed to prevent the distribution of child sexual abuse material (CSAM) and non-consensual material (NCM) across its platforms.

The deal, lodged in the U.S. District Court for the District of Utah, would require Aylo to pay $5 million to the state and adopt sweeping compliance measures; an additional $10 million in penalties would be suspended contingent on future compliance.

Under the proposed order, Aylo must implement a program to prevent the publication of CSAM and NCM (Non-Consensual Material), verify that people appearing in videos are consenting adults, and remove legacy content unless and until performers’ ages and consent are verified. The company would also be required to post notice of the allegations and create a comprehensive privacy and information-security program addressing past data-handling failures cited by regulators. Independent, third-party assessments would occur every two years for a decade.

“The operators turned a blind eye to the proliferation of videos depicting the sexual abuse of children on its sites so it could profit off this exploitation,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. Utah Gov. Spencer Cox called the consent order “an important step in protecting people from some of the most harmful and exploitative material online.”

Aylo, which did not admit wrongdoing, said it agreed to settle “in line with its longstanding commitment” to safety and compliance. The company noted the order imposes $5 million in civil penalties, with $10 million suspended pending compliance, and said it would undergo biennial third-party assessments for 10 years. Aylo added that it maintains a zero-tolerance policy for illegal content and that many measures required by the settlement reflect practices adopted since 2020.

The complaint alleges Aylo distributed “tens of thousands” of CSAM and NCM files between 2012 and 2020, failed to promptly review flagged content, allowed reuploads, and inadequately banned offenders despite public claims of a “strictly prohibited” policy. Regulators also said Aylo failed to maintain required age-verification records and mishandled sensitive personal data collected from models, including inadequate encryption and access controls.

The stipulated order must be approved by a federal judge to take effect. The FTC’s Commission vote to authorize filing the complaint and proposed final order was 3–0. Although, it’s likely to be approved soon.

Pornhub and sister sites faced global scrutiny in late 2020, when major payment processors suspended services, and the company introduced new verification rules.

In December 2023, Aylo entered a deferred prosecution agreement with the U.S. Attorney’s Office for the Eastern District of New York related to proceeds linked to the GirlsDoPorn sex-trafficking case, agreeing to compensation and compliance obligations overseen by monitors. The proposed order builds on those reforms with enforceable court requirements and state penalties.

Utah officials say the settlement could serve as a model for other states pursuing remedies for residents exposed to illegal material online.