It's largely the reason why I left. As I learned more about the industry it was less palatable. They do take steps to shield themselves and reduce their liability. Let's face it, if you're a top dog at a large porn company, you live a charmed life. These guys don't want to go to jail or have the government poking around in their business.
The whole industry is legitimized by one object: a camera. If you pay someone to have sex, it's prostitution. If you pay someone to have sex and you record it, it's business. This very fine line is one they constantly walk; they're always a step away from criminal behavior.