CJ,
Actually in the U.S. the rules for brick and mortar are just as convoluted as those for the internet. Obscenity in brick and mortar has been a local issue, not a federal one. They leave it to the states and often even the local municipalities to decide what they'll tolerate. This is the so-called "community standards".
What is perfectly acceptable in L.A. and sold at every video store, might get you shut down in Alabama and the heart of the bible belt.
Although the laws have not changed, what is tolerated changes depending on who is in office locally. Both Atlanta and New York are excellent examples.
Back in the early 80's smut was not tolerated at all, there were prosecutors in office who were on a mission and they shut down every adult bookstore. You couldn't get anything stronger than penthouse and only "cable versions" of video. They even prosecuted Larry Flynt for distributing Hustler here....it was at his trial in Lawrenceville, GA (a suburb now) that he was shot and paralyzed.
It is only in the last 10 years or so that it hasn't become somewhat easy to go buy or rent a hardcore video in Atlanta.
NYC on the other hand has kinda gone the other way. 10 years ago you could buy pretty much anything you wanted around 42nd street. That was the first place I ever saw "Naughty Nuns & Nazis #45" out on the shelf in plain view. Then Mayor Rudy cleaned it up....all this happened local.
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