Adult Games: FTC Chairman Ferguson Writes Warning Letter to Payment Providers
Adult content publisher got unexpected support from the FTC. Its Chairman has sent Warning Letters to PayPal, Stripe, Visa and Mastercard, reminding them of their obligations to their customers under the FTC Act.
Andrew N. Ferguson, Chairman of the Federal Trade Commission (FTC) | Picture by FTC
Even though the letters do not specifically mention adult entertainment, adult games or NSWF games, the debate surrounding the boycott of such content is likely to have been the trigger for the warning letters.
In any case, the FTC Chairman remains neutral and warns PayPal, Stripe, Visa and Mastercard against excluding customers from services that do not breach the law on political or religious grounds. Specifically, FTC Chairman Andrew N. Ferguson writes: “Full participation in commerce and public life necessarily requires that law-abiding individuals can access, and freely participate in, our financial system.”.
“It is inconsistent with American values to deny law-abiding individuals the ability to run their legitimate businesses and feed their families because they attracted the ire of rogue American officials, overzealous activists, or, more worryingly, foreign governments seeking to control public discourse,” he continued. “That is why President Trump’s August 7, 2025, Executive Order on debanking makes clear that it is unacceptable to debank law-abiding citizens due to ‘political affiliations, religious beliefs, or lawful business activities.’”
The FTC is warning businesses against excluding customers or denying them access to services, and is threatening to launch FTC investigations and impose potential enforcement action. Although the letters were likely not written solely because of the NSFW games debate, various US media outlets believe it plays a significant role.
The background to this is that platforms such as Steam and Itch.io have delisted such games in recent months, apparently under pressure from their payment providers, to whom they are, in some cases, exclusively tied. The basis for the payment providers’ actions is a campaign by the Australian organisation Collective Shout, which, according to its own statements, campaigns against the sexualisation of women and girls in the media. However, the co-founder and director of Collective Shout is also a pro-life activist and staunch opponent of abortion. Furthermore, Collective Shout’s campaign had led to games with LGBTQ+ themes being banned from the platforms as well.
This not only sparked protests from the LGBTQ+ community but also caused widespread concern among developers and politicians. Ultimately, the case demonstrates just how much influence payment providers have over content.
Stephan Steininger is Director of Operations and Editor-in-Chief of GamesMarket. As part of the magazine since its inception in 2001, he knows the GSA games industry by heart.