This morning at the XBiz conference we were treated to a truly astounding seminar-- an FBI Agent supervisor involved in 2257 inspections addressing adult webmasters and taking questions!
At the end, the attorneys who were sitting up there with him were quick to point out that what the Agent said was not legal advice and some of what he said contradicted the regulations. They also basically said you still need to retain them at enormous cost to keep yourselves protected
I was there and took plenty of notes. Most lawyers would charge you for a consultation but as you know I am NOT like most lawyers!
First, the agent told us the procedure they go through to conduct an inspection. They have a list of 1200 producers [and adding to that list all the time] and randomly select a producer from that list. If your number comes up, they first order some product from you, such as ordering a DVD.
Then they take that product and review it for obvious compliance --does it have the 2257 statement on it and do any of the models look underage. This first phase is looking for 2 things -- if you at least appear to be in compliance and if you have obviously underage models. They make a list of all the models that appear in the video, either by stage name or some other reference if there is no stage name. For example, if you have a scene where you never see a models face but only see his ass getting pounded they might call that "Ass Man #1" The Agents prepare a spreadsheet with the models and plan a little visit to you.
They take a photograph of the exterior of the address listed and then photographs of the room where your records are kept and a 3rd photograph of the work area they are assigned. The Agent specifically said they appreciate a quiet work area where they can spread out, such as a conference room, although you can have them work anywhere. My advice is make them comfortable so they can do their work and go away..
Next, they look through your records and make copies. They check your system to make sure it is indexed by model's legal last name and can be cross-referenced. If they are looking at your video Butt Bangers Ball #45 and there are 15 models in that video, they should be able to see a record for each model in that video and that record should show that the model appeared in that video. They look at the copies of ID's and want to see the model's name and date of birth. The Agent said that he does not consider an ID that is redacted to cover the address and other personal information a violation.
The Agent in charge will then prepare an unofficial courtesy report and give that to you. That report states any violations that they noted. If you have a missing model ID or the records are not cross-referenced, that is a violation and that will be on the unofficial courtesy report.
The Agent then said you have one week to respond to his unofficial report. So, if there was a missing ID for Ass Man #1, and within that one week you locate the ID and send the ID to the Agent, the Agent will note that although initially in violation that you have taken steps to correct. The Agent said that "it is good if you can show resolution of violations". He also said that if there were any violations that were not resolved in that unofficial grace period "You will see us again"
He repeatedly stated that their intention was to find evidence that models are not underage and that the producer is making a good-faith attempt to comply.
In an unabashed plug for myself, having had an adult industry attorney familiar with 2257 review your record-keeping procedures does help to show a good-faith effort to comply. :-)
Of the 10 inspections so far, he said only 2 had no violations noted. The most common violations were:
Failure to cross-reference legal names, stage names, and all the movies that the model appeared in
Missing Photo ID
Photo ID that was not legible or could not tell who the person was in the ID because of poor copy quality. He said a good ID has a clear face shot, the face shot matches the model in the video, and the date of birth is legible.
The Agent also said that one thing they do not like is deception on a website, such as a false address or PO Box. He said "We will find you" He also said that if you really are a US company using an off-shore 2257 address is not a good idea.
The Agent also addressed the "hours of business" requirement. He stated "If we show up and you have a sign on your door that says 'Gone for 3 weeks on vacation' they will simply come back. However, you cannot be on vacation forever and you do need to be there at some time. He said posting your business hours on your 2257 statement is a good idea, and they have no problem with webmaster's business hours. He said that if you do not want to post your hours, you can contact the FBI and tell them your business hours privately.
The Agent summed it up by saying that if you show a good faith intention to comply that the likelihood of prosecution is nil. THAT is great news!!