Ashley Madison’s parent company pays US$1.6M in settlements with U.S. government

The investigation was launched last year when a massive security breach exposed the personal dealings and financial information of millions.

The Toronto-based parent company of the infidelity dating site Ashley Madison said Wednesday it hoped to have turned the page after reaching settlements in an investigation led by the U.S. Federal Trade Commission.

Ruby Corp., which was previously known as Avid Life Media, said it has paid more than US$1.6 million in settlements, with half the money going to the FTC and half to the states participating in the probe.

The company said that as part of the agreement, it will also maintain a comprehensive information security program and “refrain from past business practices that may have allegedly been misleading to consumers.”

But it stressed it neither admits nor denies the allegations made by the FTC and the various state attorneys general.

“We’re very pleased to have it resolved,” said Rob Segal, the company’s CEO. “It closes a chapter on the company’s past and I think it reinforces our commitment to operating with integrity, building a new future for our members and our team and the company.”

The investigation was launched last year after a massive security breach that exposed the personal dealings and financial information of millions of purported clients.

The hack made international headlines and cost Ruby Corp. about a quarter of its annual revenue, the company has said.

Asked Wednesday whether it had bounced back financially, Ruby Corp. said it is “stable” and “optimistic about the future.”

Ashley Madison was also the subject of investigations by privacy officials in Canada and Australia, which concluded in August and found the site had inadequate security safeguards and policies when it was targeted by hackers.

The Office of the Privacy Commissioner of Canada and the Office of the Australian Information Commissioner say their investigation identified numerous violations of the privacy laws of both countries.

Ashley Madison was also plagued by allegations that it resorted to fake profiles of women — commonly known as bots – to lure unsuspecting male customers.

The company had consistently denied the accusations but said earlier this year that a report found the bots were still active in some parts of the world until late 2015.

Ashley Madison underwent a major rebranding earlier this year in an effort to bounce back from the breach, and even dropped its signature tagline “Life is short. Have an affair.”

 

Paola Loriggio, The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Fire truck, police car hit in chain of crashes on Hwy. 99 in South Surrey

‘People weren’t paying attention,’ says Surrey assistant fire chief

Chilliwack man who sexually assaulted young boys released from prison

Statutory release for Don Putt who Parole Board calls an ‘untreated sex offender’

Greedy family’s maid overcomes them all in Surrey Little Theatre’s latest play

‘The Late Christopher Bean’ is staged at Clayton-area theatre for a month starting Jan. 23

Two-vehicle crash leads to argument in South Surrey

Police investigating after one driver left the scene

Surrey man charged in 2019 Vancouver homicide

Chad Harry, 32, charged with second-degree murder in killing of 35-year-old Cong Tran

Kids across Canada more at risk of hospitalization from flu this season: doctor

Dr. Theresa Tam said influenza B does not usually peak until February or later

Closed mills, housing surge support a positive forecast for lumber industries

B.C. lumber producers have closed mills accounting for 18% of province’s capacity, RBC report says

Good Samaritan pays part of rent for B.C. woman facing eviction in can-collecting dispute

Zora Hlevnjak, 76, supplements her pension by collecting cans and receiving public donations

Should winter tires be mandatory in the Lower Mainland?

ICBC dial-a-claims go up as winter storm takes toll

Canada Post driver in hospital after ice smashes windshield at Massey Tunnel

Incident happened on Richmond side of the Massey Tunnel

Abbotsford bank ATM robbery thwarted by woman standing her ground

Police arrest alleged known robber running down South Fraser wearing balaclava

Kelowna’s ‘Baby Mary’ finds biological parents after more than 30 years

Geneologist and DNA test helped her connect with her biological parents

Kelowna hotel to award couples for baby-making with Nooner deal

The deal includes a free stay every Valentine’s Day for the next 18 years

Dad of missing Abbotsford woman charged after allegedly exposing himself in park

Barry Shpeley charged with sexual assault and assault

Most Read