Craigslist is ditching the Erotic Services section of its site after months of heated controversy, according to the Illinois Attorney General Lisa Madigan. She said Wednesday that the current Erotic Services ads would come to an end in seven days, and that Craigslist would replace that section of the site with a new, yet-to-be-named adult category that will be reviewed by Craigslist staff.

Craigslist has been working hard to fend off criticism that it facilitates prostitution by implementing numerous measures to help curb Erotic Services listings. In November of 2008, Craigslist came to an agreement with the National Center for Missing and Exploited Children (NCMEC) and the Attorneys General of more than 40 states to reduce prostitution on the site. In addition to a new phone verification system launched in March 2008, Craigslist began requiring credit card verification for each listing in the Erotic Services section. These two measures were meant to make posters more accountable for their listings, as Craigslist could blacklist phone numbers or credit cards that had posted "inappropriate" ads in the past. As a result, the company has apparently seen a 90 percent drop in Erotic Services listings, which, of course, was the goal.

Still, this wasn't enough to satisfy... pretty much anybody in law enforcement. Craigslist continued to be a target for lawmakers and was even the subject of a lawsuit from the Cook County Sheriff's Department in Chicago in March. And, earlier this month, South Carolina Attorney General Henry McMaster threatened the site with criminal charges if it didn't close down Erotic Services before May 15. Meanwhile, Madigan and the AGs from Connecticut and Missouri discussed possible changes with Craigslist last week in hopes of convincing those behind the site to take further action.

Madigan's and the other AGs' approach apparently worked. "We're very encouraged that Craigslist is doing the right thing in eliminating its online red light district with prostitution and pornography in plain sight," Connecticut AG Richard Blumenthal said in a statement to the Associated Press. "We'll be watching and investigating critically to make sure this measure is more than just a name change."

Craigslist has yet to publicly acknowledge these supposed changes, however, so it's hard to analyze how it will affect the already-existing problem. Assuming Madigan's description of the changes is accurate, it sounds as if Craigslist will be taking a more hands-on approach to moderating this new adult section of the site by approving each individual listing as it comes in. Once again, however, we can't help but wonder what will stop potential prostitutes from going back to other, less-moderated sections (helloooooo Casual Encounters) to peddle their services.

Craigslist told Ars that it would have a statement by 2pm CDT; we'll update this story as needed.

Update: Craigslist has�posted a statement on its blog regarding the shuttering of�Erotic Services. The company says that the new section will be called "Adult Services" and it will feature postings by "legal adult service providers." Each listing will be manually approved by moderators to ensure compliance with the TOS. New postings will cost $10, and those eligible for reposting will be able to do so for $5. The company plans to continue donating its revenues from adult services to charity.�