i couldn't find anything on Snopes.com, where i usually look up stuff like this; even though it's not an urban legend or net rumor, it sort of applies. But at http://www.museumofhoaxes.com, i found this blog
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Rent A Dildo I've commented on weird rental services before, but this is easily the weirdest yet. It's Rent a Dildo. It's like Netflix for sex toys. Not something many people would want to use second-hand. The site is very well designed and professional looking (though the topic itself makes it not safe for work). However when you try to sign up you read that "Though we are not yet signing up paying customers, we are testing the service with a limited number of beta users." This is code for "This is a hoax". (Thanks to Iain for the link)
While I'm on the subject of sex hoaxes, also check out Abstinence Only, a site that "offers abstinence-only education based on the strictest most literal interpretations of the Bible" (it's also NSFW). Turns out you can do quite a lot while remaining 'abstinent'.
http://www.museumofhoaxes.com/hoax/weblog/archive/2005/04/P30/
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Now, further reading on the rent-a-dildo site brought me to this humorous notice
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Notice to Customers: Discontinuation of Anal Sex Toys
9/27/2005
Effective immediately, we will cease lending anal sex toys to customers. This includes butt plugs, anal beads, anal probes, and dual-penetration dildos. If you currently have one of these types of rental toys, you may keep it without charge as a courtesy accommodation.
We have taken this step due to concerns raised by health officials about the possible spread of fecal-borne disease. Please note, we are confident that our patent-pending cleaning process is sufficient to sterilize toys, even after extensive inter-anal use, and no infections have been reported by our customers. However, we have decided to err on the side of caution by eliminating anal toys from our rental inventory.
As a further precaution, all sex toys returned to us will be tested for fecal matter. If a toy tests positive, the customer returning the toy will be given a warning. Any repeat violations will result in the cancellation of the customer's account and being billed for the cost of the soiled toy.
We appreciate your cooperation with this new protocol and your continued patronage of our sex toy rental service.
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