Mastercard has recently launched a new regulation policy for adult content websites that took effect from October 15. The providers that do not comply with the new regulations will be unable to process payments through Mastercard and affiliated banks.

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The new ‘speciality merchant’ regulations underscore how financial institutions, especially credit companies, are becoming the de facto regulators of what happens on the internet. And much to the consternation of sex workers, they are not willing to listen to the other side of the story.

However, Mastercard in a statement clarified the regulations do not impact legal adult activity in the country.

“In April, announced a registration program for banks who connect merchants to our network. Those banks need to certify the websites selling adult content have effective controls in place to monitor, block, and remove illegal or unconsented content. This program does not impact legal adult activity created by consenting individuals or studios,” it said in a statement.

What are the new regulations?

While Mastercard has not publicly revealed what these new regulations will call for, advocacy groups like Free Speech Coalition and others have stated some of the stipulations that Mastercard has put on adult content providers.

Among other requirements, platforms that publish adult content will now need to show that every person in an adult video has consented to be in it, consented to have it distributed and consented for that content to be available for download.

Additionally, companies will have to verify and document the age of everyone within the content, and also the age of the uploader of the content. All of this data would be given to Mastercard in monthly compliance reports.

Mastercard has also sent ‘compliance packages’ to webmasters of adult content platforms. Within these packages, platforms have to set up a page dedicated for visitors to report instances of abuse, reported Xbiz. This checklist of potential ‘abuse’ and reportable offences include “exposed personally identifiable information,” “impersonation,” “underage material,” “copyright/trademark infringement” and “spam" as well as “prostitution or trafficking,” “weapons,” “drugs” and “other.”

The form was essentially forcing websites to add words like “underage material,” “prostitution or trafficking,” “weapons” and “drugs” to their metadata, which would put these websites and platforms at risk of being shadow-banned and come under state surveillance.

Apart from the morally-coded implications of labelling prostitution along with trafficking, webmasters told Xbiz that the system is ripe for abuse. With the reports being copied and forwarded to Mastercard, the report system can easily be abused by anti-porn forces and rival competitors. The reports can also be used by jilted partners and stalkers to harass particular performers on their own websites as well.

“Mastercard is now making me comply with a form that could harm my brand, and even the models I work with, if I want to continue doing business with them,” the webmaster told Xbiz.

Sex workers cry foul

Sex workers, activists and others have said that these new regulations are a continuation of the discriminatory behaviour of financial institutions towards the sector.

Payment processors and banks have long been hostile and practised discriminatory practices towards sex workers, with banks and payment providers like PayPal and Square, terminating accounts associated with their work.

The discrimination against sex workers continues even in nations where the profession is heavily regulated and completely legal.

Nearly a year ago, Visa, Mastercard and Discover cut ties with Pornhub, a major adult content platform, after anti-porn groups used a New York Times opinion piece over claims of sex trafficking on the platform.

“These actions are exceptionally disappointing, as they come just two days after Pornhub instituted the most far-reaching safeguards in user-generated platform history,” Pornhub had said in a statement in response.

“I don’t feel helped by these new policies,” a sex worker who asked to remain anonymous told Vice.

“By forcing me to fill out a consent 'contract' or upload an ID that protects producers, platforms, and banks from liability, I would have a harder time winning a case against an abusive producer. Sex workers themselves are rarely involved in legal or civil liability for trafficking, CSAM (child sexual abuse material), or other problematic content. I only see this surveillance and these policies as further exploitation not help; they make me less safe,” the person added.

A key group that has been advocating against porn is the National Center on Sexual Exploitation (NCOSE), renamed from Morality in Media. The group has admitted before to be working towards completely outlawing all porn from the internet.

While Mastercard has updated its regulations, it’s unclear how these regulations will apply to other websites that are not considered adult websites but do publish adult content in the form of art, books and other miscellaneous material.

What is certain is that the new regulations will further marginalise the already heavily discriminated profession. The irony is not lost that one can buy a firearm using a Mastercard in many places, while the company is putting more regulations on sex work.

Mastercard's statement

Mastercard, in a statement to CNBC-TV18, said such “allegations of bias against adult content creators are demonstrably untrue. Our actions and business practices against trafficking and exploitation clearly show this.”

The financial payments company is also in discussions with groups to monitor how the implementation of the new policies. “We are monitoring how the program is being implemented so that we can provide further clarification and guidance to the acquiring banks and their customers as needed,” it said.

(The copy was updated to incorporate Mastercard's statements)

(Edited by : Shoma Bhattacharjee)

First Published:Oct 21, 2021 8:39 PM IST