<div dir="ltr"><a href="http://www.nationallawjournal.com/id=1202774674673/In-Ashley-Madison-DataBreach-Settlement-FTC-Asserts-Role-as-Cyber-Cop?slreturn=20161114215540">http://www.nationallawjournal.com/id=1202774674673/In-Ashley-Madison-DataBreach-Settlement-FTC-Asserts-Role-as-Cyber-Cop?slreturn=20161114215540</a><br><p dir="ltr">AshleyMadison.com, a website built to help cheating lovers
meet their match, has agreed to settle claims that lax cybersecurity was
responsible for a data breach that exposed the personal information of
millions of customers last year.</p><p dir="ltr">As <u><a href="https://assets.documentcloud.org/documents/3238509/161214ashleymadisonorder1.pdf" rel="nofollow"><span style="color:rgb(0,0,255)">part of an agreement</span></a></u>
with the Federal Trade Commission and several state attorneys general,
the parent company, Ruby Corp., will pay $1.6 million to resolve charges
connected to the July 2015 hack. The breach exposed millions of
customers’ addresses, credit card numbers and sexual preferences.</p><p dir="ltr">The
sanctions announced Wednesday amounted to $17.5 million, but that
penalty was largely suspended because of the company’s inability to pay,
FTC Chairwoman Edith Ramirez told reporters on a conference call. If
regulators later determine Ashley Madison’s parent company
misrepresented its financial condition, it will have to pay the entire
settlement amount.</p><p dir="ltr">“This case represents one of the
largest data breaches that the FTC has investigated to date, implicating
36 million individuals worldwide,” Ramirez said in a statement. “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.”</p><p dir="ltr">In
August 2015, a month after the breach, hackers published the personal
information of more than 36 million AshleyMadison.com users online.
AshleyMadison.com retained some of that information after charging
customers $19 for the “full delete” service to permanently remove their
data from the site’s network.</p><p dir="ltr">James Halpert, co-chairman
of DLA Piper’s cybersecurity practice, represented Ashley Madison and
its parent company, formerly known as Avid Life Media Inc. Halpert was
not immediately reached for comment Wednesday.</p><p dir="ltr">According
to the FTC, Ashley Madison advertised that it received a “Trusted
Security Award” when, in fact, it had received no such award and failed
to take adequate data security measures.</p><p dir="ltr">The FTC and
attorneys general also alleged that the website created fake profiles to
lure in new users. That portion of the FTC’s complaint <u><a href="http://www.law.com/sites/almstaff/2016/07/05/lessons-from-the-ftcs-first-action-against-a-dating-website/" rel="nofollow"><span style="color:rgb(0,0,255)">mirrored charges the agency brought</span></a></u>
in 2014 against another online dating site, the England-based JDI
Dating Ltd. The company agreed to pay $616,165 in redress to resolve
claims that it used computer-generated profiles to trick customers into
upgrading their accounts and charged users a recurring monthly fee
without their consent.</p><p dir="ltr">According to the FTC,
AshleyMadison.com employed a similar strategy through August 2014, using
fake profiles of women to entice 19 million U.S. residents into
upgrading to paid accounts.</p><h2 dir="ltr"><strong>'Unprecedented' international cooperation</strong></h2><p dir="ltr">Regulators
in Canada and Australia assisted the FTC in the investigation and
reached separate settlements with Ashley Madison’s Toronto-based parent
company. Ramirez said Wednesday the investigation involved an
“unprecedented level” of international cooperation.</p><p dir="ltr">Ramirez
said she expects the FTC to step up its cooperation with overseas
regulators as it continues to enforce data-security standards.</p><p dir="ltr">“Certainly
the fact that these issues impact consumers worldwide means
international cooperation is becoming increasingly important,” she said.</p><p dir="ltr">“I see it as the beginning,” she added. “I think that’s going to be happening increasingly going forward.”</p><p dir="ltr">The
FTC has established itself as a top cybersecurity cop in recent years.
On Wednesday, Ramirez said she believes cybersecurity is “going to
continue to be a top priority” for the agency after President-elect
Donald Trump takes office next year.</p><p dir="ltr">The FTC was joined in the settlement by 13 states, along with the District of Columbia.</p><br></div>