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One of the disputants speaking to CNN said he demanded a refund specifically because he discovered that the ‘women’ messaging him on the site were bots.
Those revelations, of course, come after a massive hack that exposed the personal information of 32 million users.
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An ongoing FTC investigation of the company is likely focused on the circumstances of that hack, but could expand to both the use of bots and billing practices.
The company told the Avid Life Media’s new leaders, CEO Rob Segal and President James Millership, were hired in April, but last week’s announcement is the company’s first comment on its plans for a post-hack turnaround.
More than a year after its total privacy meltdown, Ashley Madison will settle up.
After news emerged that the company was subject to an investigation by the Federal Trade Commission, the company now faces a .5 million settlement as a result of the multi-state investigation.
Here's the federal court order [PDF] that requires Ashley Madison to: Ashley Madison was hacked in July 2015, resulting in the disclosure of personal information belonging to 35 Million users, including their usernames, first and last names, passwords, credit card data info, street names, phone numbers, transactions records, and email addresses.
Annalee Newitz, a reporter who helped expose the site’s use of bots, also uncovered internal documents showing that 80% of initial purchases on Ashley Madison were by a male user trying to communicate with a bot.
Meanwhile, CNN Money reports that customers who disputed charges from the site were told that records of their activity would be mailed to their home, essentially a threat to expose them to spouses and families.
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Millions of members in more than 50 countries use Ashley Madison to find discreet relationships of all kinds.