Vermont Business Magazine Attorney General William Sorrell led a group of thirteen states and the District of Columbia, and worked with the Federal Trade Commission to enter Consent Judgments today with ruby Corp, which owns the AshleyMadison.com website. The State of Vermont, as the lead state, will receive an immediate payment of $116,000.
In July 2015, the Ashley Madison site, which caters to individuals wishing to have affairs, was hacked and millions of Ashley Madison members’ information, including photographs, usernames, email addresses, and other profile information, was posted online by the hacker. In the wake of the security breach it was discovered that the website had created thousands of fake user profiles, misrepresented the strength of its security, and sold a “Full Delete” option which it did not carry out in all instances.
“The State Attorneys General, and Vermont in particular, have been in the vanguard of protecting consumers’ privacy online,” said Attorney General Sorrell. “There is not a different standard simply because a consumer adopts a particular lifestyle. Fraud is fraud and it is against the law. The companies providing these goods and online services must know that the law applies to them just like it applies to everyone else.”
The settlements include an immediate payment of $1,657,000 split between the states and the Federal Trade Commission. The remainder of the $17.5 million payment is suspended based on ruby Corp.’s proven inability to pay a further amount at this time.
In addition to monetary penalties, ruby Corp agreed to cease certain deceptive practices, to not create fake profiles, and to implement a stronger data security program. More information about Attorney General Sorrell’s efforts to protect consumers can be found at ago.vermont.gov/focus/consumer-info.php.
Vermont AG: Dec 14, 2016