Quote:
Originally Posted by Failed
This may be a stupid set of questions, but I've never seen them asked or answered. Is shaving an illegal business practice? Are there penalties or other actions governments can pursue against a company that shaves money from an affiliate? Are there grounds for a lawsuit from affiliates against companies that shave?
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It's definitely fraud as well as possibly other things like conspiracy. In most cases it's also likely a felony due to it crossing state lines and the dollar amounts involved. The problem is it's difficult to prove, the authorities typically aren't looking to protect adult affiliates, and you need money to sue.
But in theory if you are an affiliate and you have proof or something reasonable you could try suing and getting subpoena for employees and owners to admit to it. It would either be that or lie under oath.
In theory it's also a great way for the government to take down an organization if they can get proof of shaving. Being fraud it would likely open the door to RICO act violations and racketeering charges if the government saw fit to seek them. The government would present the adult company as "a criminal conspiracy". They could either get an employee to break and admit to it or sign up as an affiliate and conduct a "sting operation" where they gather evidence for trial. Unlikely but it's possible. Personally I hope a fed is reading this right now and that I gave them an idea.
