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

Just Posted

Surrey business groups dig in heels on LRT

Mayor-elect Doug McCallum and his coalition aim to cancel LRT in favour of extending SkyTrain

New faces on Surrey council: Who they are and how they got here

The council includes seven of eight candidates who ran with Doug McCallum-led Safe Surrey Coalition

UPDATE: Missing Surrey girl, 15, located

Surrey RCMP sought help to locate Hailey McClelland

Surrey’s mayor-elect McCallum has big promises to keep

From estimated 337, 289 eligible voters in Surrey, 109,791 votes were cast for 32.5 per cent turnout

Dancing zombies expected in droves at Surrey’s ‘Thrill the World’ event

Michael Jackson’s iconic video inspires group-dance gatherings around the globe

B.C. sailor surprised by humpback whale playing under her boat

Jodi Klahm-Kozicki said the experience was ‘magical’ near Denman Island

Ovechkin has 4 points as Caps rough up Canucks 5-2

WATCH: Defending champs pick up impressive win in Vancouver

Vancouver mayoral hopefuly admits defeat, congratulates winner Kennedy Stewart

Ken Sim of the Non-Partisan Association apologized for the time it took to acknowledge Stewart won

Mental fitness questioned of man charged in Chilliwack River Valley shooting

Peter Kampos told his lawyer ‘his dreams are being stolen and turned into drugs’ at Surrey Pre-trial

Fraser Valley mom stuck in Africa over adoption delay

Kim and Clark Moran have been waiting four weeks to bring son home

B.C. government moves to tighten resource industry regulations

New superintendent will oversee engineers, biologists, foresters

Election watchdog seeks digitally savvy specialists to zero in on threats

Move follows troublesome evidence of online Russian interference in the 2016 U.S. election

Most Read