Blame the holier-than-thou DAs like Blumenthal
CL NEVER CHARGED for those ads UNTIL loudmouth DAs like Blumenthal and that other yokel Henry McMaster from South Carolina (who was trying to get re-elected) got their pious PR machines going making a big stink about it. Which forced CL to A) waste tons of time/money fighting frivolous lawsuits that were ultimately thrown out of court, B) hire extra staff solely for the purpose of vetting the adult ads, and C) started requiring a credit-card as a way of verifying identity.
I'm sure that far more criminal acts in this country get committed with the assistance of the telephone, yet I haven't heard calls to shut down all the telephone companies for that "sin".
Plain and simple, these are political hacks trying to make a name for themselves, they are either right-wingers like McMaster that see little to like about progressive businesses like CL, or publicity hounds like Blumenthal trying to create false controversies. Blumental went after MySpace before CL. According to wikipedia:
"In 2007, Hans Bader, Counsel for Special Projects of the Competitive Enterprise Institute (a Libertarian think-tank) ranked Blumenthal as "the nation's worst state attorney general", based on "a set of explicit criteria — such as encroachment on the powers of other branches of government, meddling in the affairs of other states or federal agencies, encouragement of judicial activism and frivolous lawsuits, favoritism towards campaign contributors, ethical breaches, and failure to provide representation to state agencies or to provide legal advice."[56] Bader singled out Blumenthal for his role in the 1998 tobacco settlement and state efforts to regulate carbon dioxide in other states through lawsuits against out-of-state companies.[57]
Rob Simmons, one of Blumenthal's Republican contenders for Senator of Connecticut, has circulated this document on the Internet, charging Blumenthal with "supporting meritless, politically-driven lawsuits."[58]"