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Visa and Mastercard suspend payments for ad purchases on Pornhub and MindGeek amid controversy
Published Thu, Aug 4 2022 12:05 PM EDT Updated Thu, Aug 4 2022 6:01 PM EDT
Visa and Mastercard have suspended card payments for advertising on Pornhub and its parent company MindGeek. A federal judge in California on Friday denied Visa's motion to dismiss a lawsuit by a woman who accuses the payment processor of knowingly facilitating the distribution of child pornography on Pornhub and other sites operated by parent company MindGeek. Visa CEO and Chairman Al Kelly said he strongly disagrees with the court's decision and is confident in his position. However, the court decision created uncertainty about the role of TrafficJunky, MindGeek's advertising arm, so the company will suspend its Visa acceptance privileges until further notice, Kelly said. Mastercard also cited new revelations from the case for its decision.
Visa CEO says company suspending TrafficJunky's card acceptance privileges
Visa and Mastercard said Thursday card payments for advertising on Pornhub and its parent company MindGeek would be suspended after a lawsuit stoked controversy over whether the payments giants could be facilitating child pornography.
A federal judge in California on Friday denied Visa's motion to dismiss a lawsuit by a woman who accuses the payment processor of knowingly facilitating the distribution of child pornography on Pornhub and other sites operated by parent company MindGeek.
Visa CEO and Chairman Al Kelly said in a statement Thursday that he strongly disagrees with the court and is confident in his position.
"Visa condemns sex trafficking, sexual exploitation, and child sexual abuse," Kelly said. "It is illegal, and Visa does not permit the use of our network for illegal activity. Our rules explicitly and unequivocally prohibit the use of our products to pay for content that depicts nonconsensual sexual behavior or child sexual abuse. We are vigilant in our efforts to deter this, and other illegal activity on our network."
Kelly said the court decision created uncertainty about the role of TrafficJunky, MindGeek's advertising arm, and accordingly, the company will suspend its Visa acceptance privileges until further notice. During this suspension, Visa cards will not be able to be used to purchase advertising on any sites, including Pornhub or other MindGeek-affiliated sites, Kelly said.
"It is Visa's policy to follow the law of every country in which we do business. We do not make moral judgments on legal purchases made by consumers, and we respect the rightful role of lawmakers to make decisions about what is legal and what is not," Kelly said. "Visa can be used only at MindGeek studio sites that feature adult professional actors in legal adult entertainment."
Separately, Mastercard told CNBC it's directing financial institutions to suspend acceptance of its products at TrafficJunky following the court ruling.
"New facts from last week's court ruling made us aware of advertising revenue outside of our view that appears to provide Pornhub with indirect funding," a statement from Mastercard said. "This step will further enforce our December 2020 decision to terminate the use of our products on that site."
At that time, Visa also suspended sites that contained user-generated content, and acceptance on those sites has not been reinstated.
The woman is suing Visa and MindGeek over a sexually explicit video her boyfriend filmed of her when she was 13 years old.
U.S. District Judge Cormac Carney, of the Central District of California in Santa Ana, said Visa made the decision to continue to recognize MindGeek as a merchant, despite its alleged knowledge that MindGeek monetized child porn.
Hedge-fund manager Bill Ackman recently spoke out about the controversy , calling on Visa to pressure Pornhub to remove child pornography from its site.
MindGeek told CNBC it has never tolerated child sexual abuse material or any other illegal material.
"Recently, allegations have been made that MindGeek knowingly allowed and monetized [child sexual abuse material]. These assertions are reckless and, more importantly, absolutely false," a spokesperson at MindGeek said in a statement. "In many cases, these falsehoods have been propagated by groups whose stated agenda is to shut down the adult entertainment industry."
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Visa and Mastercard Suspend Payments to PornHub Parent Company Advertising Platform
On Thursday, Visa and Mastercard announced that they will not allow usage of their credit cards on advertising overseen by MindGeek, the parent company of PornHub.
In his statement, Visa’s Chairman and CEO Alfred F. Kelly, Jr. wrote , “Let me be clear: Visa condemns sex trafficking, sexual exploitation, and child sexual abuse. It is illegal, and Visa does not permit the use of our network for illegal activity.”
Movieguide® previously reported on Visa’s legal entanglements with PornHub “for monetizing ‘videos of child rapes.’”
Kelly, however, reiterated that Visa “suspended sites that contained user-generated content in December 2020 and acceptance on those sites has not been reinstated. Despite what you may have read in recent days, you cannot use your Visa card on Pornhub.”
Additionally, the company has suspended TrafficJunky, MindGeek’s advertising arm, due to uncertainty about its role.
“Accordingly, we will suspend TrafficJunky’s Visa acceptance privileges based on the court’s decision until further notice,” Kelly stated .
Mastercard will also direct financial institutions to “suspend acceptance of our products at TrafficJunky.”
“New facts from last week’s court ruling made us aware of advertising revenue outside of our view that appears to provide Pornhub with indirect funding,” Mastercard’s statement read. “This step will further enforce our December 2020 decision to terminate the use of our products on that site.”
In December 2020, both companies stopped allowing the use of their cards on PornHub and other MindGeek sites after a New York Times exposé highlighted minor sexual abuse on PornHub.
However, the National Center on Sexual Exploitation, an anti-trafficking organization working to shut down PornHub and other pornography sites, maintains that “while Visa initially suspended processing payments for Pornhub and other MindGeek sites in December 2020, it re-established a relationship with MindGeek.”
Kelly reasserted, “Our rules explicitly and unequivocally prohibit the use of our products to pay for content that depicts nonconsensual sexual behavior or child sexual abuse.”
“We are vigilant in our efforts to deter this and other illegal activity on our network,” he added. “Moreover, we require Visa’s financial institution clients, which maintain the direct relationships with merchants, to assure and attest to merchants’ compliance with our standards.”
However, Visa does “not make moral judgments on legal purchases made by consumers.” Their cards can still be used on “MindGeek studio sites that feature adult professional actors in legal adult entertainment.”
While NCOSE welcomed Visa’s announcement, its CEO Dawn Hawkins said that Visa “must do more” than this “incremental step.”
“If Visa cares about these issues as much as they say they do, Visa must suspend all payment processing services for XVideos, XHamster, and all pornography tube sites as well as their advertising arms, not only TrafficJunky,” she stated.
“In 2021, Mastercard instituted new policies for combatting sex trafficking and child abuse in pornography. It is past time for Visa to follow Mastercard’s lead,” Hawkins concluded.
Visa remains embroiled in a lawsuit filed by a woman who was sexually exploited as a minor, which U.S. District Judge Cormac Carney ruled Visa could not be removed from.
“Visa made the decision to continue to recognize MindGeek as a merchant, despite its alleged knowledge that MindGeek monetized child porn, MindGeek made the decision to continue monetizing child porn, and there are enough facts pled to suggest that the latter decision depended on the former,” wrote Carney.
“Visa is being kept in this case because it is alleged to have continued to recognize as a merchant an immense, well known, and highly visible business that it knew used its websites to host and monetize child porn.”
Movieguide® frequently reports on porn’s detrimental effects:
“91% of male and 82% of female teenagers under 18 years old have seen extreme, X-rated, hard-core, pornographic sex-and-violence.
66% of the males and 40% of the females want to copy what they see.
More than 25% of the males and 15% of the females admitted to actually copying some of the things sexually they had seen in the pornography within a few days after the exposure.”
Companies like Visa and Mastercard should continue to do everything in their power to stop the creation and dissemination of pornography because of its harmful effects on its consumers.
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Mastercard, Visa suspend ties with ad arm of Pornhub owner MindGeek

Mastercard, Visa suspend ties with ad arm of Pornhub owner MindGeek

Stay up to date on the latest, breaking news

Visa and Mastercard on Thursday said they had suspended ties with the advertisement arm of MindGeek, owner of website Pornhub, after a lawsuit raised questions over whether the payment firms could be facilitating child pornography.

A federal judge in California last week rejected Visa's motion to dismiss a lawsuit by a woman who alleges the company facilitated the distribution of child pornography on Pornhub and other websites run by its parent company MindGeek.

Visa said "we strongly disagree with this decision" and that the company "does not permit the use of our network for illegal activity."

A spokesperson for MindGeek said the company and all of its platforms, including Pornhub, "have never tolerated" child sexual assault content or any other illegal material.

"It is against our values, and it is against our commitment to ensuring the safest possible online experience for our users," the spokesperson said, adding the platform was confident in its safety measures.

Both Visa and Mastercard in 2020 cut ties with Pornhub after The New York Times reported that many videos posted on the adult website depicted sexual assault of children. Pornhub denied the allegations.

However, Friday's court ruling created new uncertainty about the role of TrafficJunky, MindGeek’s advertising arm, Visa said.

"Accordingly, we will suspend TrafficJunky’s Visa acceptance privileges based on the court’s decision until further notice."

Likewise, Mastercard said on Thursday that new facts from the ruling "made us aware of advertising revenue outside of our view that appears to provide Pornhub with indirect funding."

As a result, the company is "directing financial institutions to suspend acceptance of our products at TrafficJunky."

(Reporting by Michelle Price; Editing by Sam Holmes)
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