Ashley Madison has agreed to pay a settlement of 1.6 Million US to the Federal Trade Commission, to settle an investigation into their business practices stemming from last year's hack. The breach was reportedly one of the largest ever investigated by the FTC, affecting 36 million users, leaving Avid Life Media as a shining example of what consumers have come to expect in the dating and social-media universe. Avid Life Media was the parent company of Ashley Madison, and re-branded itself as "Ruby" in April and appointed a new CEO to whitewash its image.
Ruby CEO Rob Segal said in a statement:
“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 company came under scrutiny by the FTC when the hack revealed that the majority of the female users on the site were in fact chatbots designed to lure men into paying for a premium messaging service offered to members. The terms of the settlement require Ruby to no longer use chatbots or other such deceptive practices and also must set up a security plan for review.