Ashley Madison Dating Site to Pay $1.6 Million Over Data Breach

Advertisement
By Agence France-Presse | Updated: 15 December 2016 12:14 IST

The operators of the Ashley Madison affair-minded dating website agreed Wednesday to pay a $1.6 million (roughly Rs. 10 crores) penalty over a data breach exposing data from 36 million users, US officials announced.

Ashley Madison's Canadian parent company Ruby agreed to the penalty to settle charges with the US Federal Trade Commission and state regulators for failing to protect confidential user information.

The settlement comes after a hacker group last year released what was said to be personal data on millions of members of Ashley Madison, who were based in 46 countries. The fallout led to reports of blackmail and even suicides.

Advertisement

The financial penalty, split between the federal government and US states suing the company, would increase to $8.75 million to the FTC plus $8.75 million to states if Ashley Madison fails to abide by new information security practices and refrain from misleading consumers.

Advertisement

"This case represents one of the largest data breaches that the FTC has investigated to date, implicating 36 million individuals worldwide," said FTC chairwoman Edith Ramirez.

"The global settlement requires AshleyMadison.com to implement a range of more robust data security practices that will better protect its users' personal information from criminal hackers going forward."

Advertisement

(Also see:  Ashley Madison Hack Sends Shivers Through Hook-Up, Porn Sites)

No compensation
Ramirez said the penalty being paid is too small to allow for "redress" or compensation to affected consumers, noting that compensation is rarely obtained in data security cases.

Advertisement

"We want them (the company) to feel the pain, we don't want them to profit from unlawful conduct," Ramirez told reporters in a conference call.

But she added that "it would not serve the public interest to put them out of business."

Earlier this year, the dating website - whose motto had been "life is short, have an affair" rebooted, calling itself an "open-minded dating" service.

The company said at the time it will no longer use female "bots" or automated programs that respond to members pretending to be women on the hunt for men.

According to the FTC complaint, until August 2014, operators of the site lured customers, including 19 million Americans, with fake profiles of women designed to convert them into paid members.

The company failed to adequately protect users' personal information such as date of birth, relationship status and sexual preferences, according to the complaint.

The company confirmed the settlement, saying it would help it move past the hacking episode.

"Today is a pivotal day for our members and for Ashley Madison," said a statement from Ruby chief executive Rob Segal.

"Today's settlement closes an important chapter on the company's past and reinforces our commitment to operating with integrity and to building a new future for our members, our team and our company."

The settlement followed an investigation in cooperation with consumer protection authorities in Canada and Australia. Thirteen US states plus the federal District of Columbia joined the lawsuit.

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Advertisement

Related Stories

Popular Mobile Brands
  1. Oppo F31 Series Launched With 7,000mAh Battery: Check Price, Features
  2. Nothing Announces Offers on Phones, Wearables During Flipkart Sale
  3. Butterfly-Shaped Hole in the Sun Could Spark Solar Storms Worldwide
  4. Vivo Y31 Series With 6,500mAh Battery Launched in India: See Price
  5. Realme P3 Lite 5G With 6,000mAh Battery Launched in India at This Price
  6. iOS 26 Update for iPhone Releases Today: Everything You Need to Know
  7. These Realme Phones Will Be Discounted During the Flipkart Big Billion Days Sale
  8. Xiaomi 17 Pro Max Tipped to Come With a Secondary Display
  9. Gemini Overtakes ChatGPT on App Store, Reaches the Top Spot
  10. iQOO 15 Live Image Leaked; Company Reveals Display Details
  1. Xiaomi 17 Pro Max Leaked Image Reveals Rear Display in a Nod to the 11 Ultra Ahead of September Debut
  2. Treasure Hunters Season 1 Now Streaming on JioHotstar: Everything You Need to Know
  3. London Stock Exchange Completes First Blockchain-Powered Fundraising via DMI Platform
  4. Zepto Fastest Sale Ever: Apple AirPods 4 Price Drops to Rs 9,999; Check Top Deals on Electronics, Accessories
  5. War 2 OTT Release Date Reportedly Revealed Online: When and Where to Watch it Online?
  6. MeitY Proposes 20-Year Tax Holiday for Data Centres to Boost Investment: Report
  7. Resident Evil Requiem, Resident Evil 7: Biohazard and Resident Evil Village Are Coming to Switch 2 Next Year
  8. Samsung Begins Rolling Out One UI 8 Update to the Galaxy S25 Series
  9. iQOO 15 Live Image Hints at Design; Confirmed to Feature 2K Samsung AMOLED Display
  10. Vivo Y31 Pro 5G, Vivo Y31 5G Launched in India With 6,500mAh Battery, 50-Megapixel Camera: Price, Features
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.