SugarDVD has withdrawn its previously-announced $500,000 offer for a sex tape featuring MTV reality-show stars Lauren Conrad and Jason Wahler.

TMZ.com reported today that Wahler's recent arrest in Seattle, during which he yelled racial and homophobic epithets at police, contributed to the online adult vendor's decision.

"We refuse to support any person who feels that it is in any way acceptable to rattle off racial slurs and slanderous language about African-American people, homosexual people and the police department," a SugarDVD spokes person told TMZ.com.

Political correctness aside, another source told TMZ that the tape itself turned out to be "very vanilla" with "no hardcore sex."

According to the report, SugarDVD is also "reaching out to their network to discourage anyone from participating in a deal for this alleged tape."