UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF COLUMBIA 

FEDERAL TRADE COMMISSION 

600 Pennsylvania Avenue, N.W. 

Washington, D.C. 20580 

 Plaintiff, 

 v. 

RUBY CORP. 

20 Eglinton Avenue West 

Toronto, Ontario M4R 1K8, 

RUBY LIFE INC., also doing business as 

ASHLEYMADISON.COM 

20 Eglinton Avenue West 

Toronto, Ontario M4R 1K8, 

ADL MEDIA INC. 

1209 Orange Street 

Wilmington, Delaware 19801 

 Defendants. 

Civil Action No. ____________ 

STIPULATED ORDER FOR PERMANENT INJUNCTION AND

OTHER EQUITABLE RELIEF 

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its Complaint 

for Permanent Injunction and Other Equitable Relief (“Complaint”), pursuant to Section 13(b) of 

the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b). The Commission, and ruby 

Corp., formerly known as Avid Life Media Inc.; ruby Life Inc. also doing business as 

AshleyMadison.com, formerly known as Avid Dating Life Inc.; and ADL Media Inc. 

(collectively, “Defendants”), stipulate to the entry of this Stipulated Order for Permanent 

Injunction and Other Equitable Relief (“Order”) to resolve all matters in dispute in this action 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 1 of 15
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between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in deceptive and unfair acts 

or practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45, in connection with their 

marketing and sale of online dating services in the United States. 

3. Defendants neither admit nor deny any of the allegations in the Complaint, except 

as specifically stated in this Order. Only for purposes of this action, Defendants admit the facts 

necessary to establish jurisdiction. 

4. Defendants waive any claim that they may have under the Equal Access to Justice 

Act, 28 U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, 

and agree to bear their own costs and attorney fees. 

5. Defendants and the Commission waive all rights to appeal or otherwise challenge 

or contest the validity of this Order. 

6. Defendants and the Commission acknowledge that this Order is being entered 

simultaneously with similar judgments in the States of Alaska, Arkansas, Hawaii, Louisiana, 

Maryland, Mississippi, North Dakota, Nebraska, New York, Oregon, Rhode Island, Tennessee, 

Vermont, and the District of Columbia. Defendants and the Commission intend to coordinate 

implementation of the terms of this Order with those referenced above. 

DEFINITIONS 

For purposes of this Order, the following definitions apply: 

1. “Defendants” means ruby Corp.; ruby Life Inc., also doing business as 

AshleyMadison.com; ADL Media Inc.; and by whatever other names each may be known, and 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 2 of 15
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their successors, assigns, or subsidiaries (including but not limited to Cougar Life Inc., 

Established Men, CL Media Inc., and EM Media Inc.) individually, collectively, or in any 

combination. 

2. “Engager profile” means an employee or agent-generated account that is not an 

account used by an actual customer.

3. “Personal information” means individually identifiable information from or 

about an individual consumer, including, but not limited to: (1) first and last name; (2) home or 

other physical address, including street name and name of city or town; (3) email address or 

other online contact information, such as an instant messaging user identifier or a screen name; 

(4) telephone number; (5) date of birth; (6) government-issued identification number, such as a 

driver’s license, military identification, passport, or Social Security number, or other personal 

identification number; (7) payment card account numbers; (8) photographs of the consumer; and 

(9) sexual preferences. 

4. “Seal” means any trustmark, logo, seal of approval, emblem, shield, or other 

insignia offered for placement on Defendants’ websites and mobile applications. 

ORDER 

I. 

PROHIBITION AGAINST MISREPRESENTATIONS 

IT IS ORDERED that Defendants, and Defendants’ officers, agents, employees, and 

attorneys, and all other persons in active concert or participation with any of them, who receive 

actual notice of this Order, whether acting directly or indirectly, are permanently restrained and 

enjoined from misrepresenting, expressly or by implication, to U.S. consumer users of their 

online dating sites and mobile applications: 

A. the extent to which Defendants collect, use, or maintain personal information, or 

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protect the privacy, confidentiality, security, or integrity of personal information, including the 

extent to which consumers may exercise control over the collection, use, or disclosure of 

personal information; 

B. the extent to which Defendants use or display engager profiles; 

C. whether the profiles that appear on Defendants’ dating websites or mobile 

applications were created by Defendants; 

D. the number of actual users of Defendants’ dating websites or mobile applications, 

or actual women users of their dating websites or mobile applications; 

E. the terms and conditions for deleting user accounts or profiles; 

F. the extent to which Defendants received awards or seals from third parties; or 

G. the extent to which Defendants are members of, adhere to, comply with, are 

certified by, are endorsed by, or otherwise participate in any privacy or security program 

sponsored by a third party. 

II. 

MANDATED DATA SECURITY PROGRAM 

IT IS FURTHER ORDERED that Defendants, must, no later than the effective date of 

this Order, establish and implement, and thereafter maintain, a comprehensive information 

security program that is reasonably designed to protect the security, confidentiality, and integrity 

of personal information collected from or about U.S. consumers of their online dating websites 

and mobile applications. Such program, the content and implementation of which must be fully 

documented in writing, shall contain administrative, technical, and physical safeguards 

appropriate to Defendants’ size and complexity, the nature and scope of Defendants’ activities, 

and the sensitivity of the personal information collected from or about consumers, including: 

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A. the designation of an employee or employees to coordinate and be responsible for 

the information security program; 

B. the identification of internal and external risks to the security, confidentiality, and 

integrity of personal information that could result in the unauthorized disclosure, misuse, loss, 

alteration, destruction, or other compromise of such information, and assessment of the 

sufficiency of any safeguards in place to control these risks. At a minimum, this risk assessment 

must include consideration of risks in each area of relevant operation, including, but not limited 

to: (1) employee training and management; (2) information systems, such as network and 

software design, information processing, storage, transmission, and disposal; and (3) prevention, 

detection, and response to attacks, intrusions, or other systems failures; 

C. the design and implementation of reasonable safeguards to control the risks 

identified through risk assessment, and regular testing or monitoring of the effectiveness of the 

safeguards’ key controls, systems, and procedures; 

D. the development and use of reasonable steps to select and retain service providers 

capable of appropriately safeguarding personal information they receive from Defendants, and 

requiring service providers, by contract, to implement and maintain appropriate safeguards; and 

E. the evaluation and adjustment of the information security program in light of the 

results of the testing and monitoring required by sub-Section C, any material changes to 

Defendants’ operations or business arrangements, or any other circumstances that Defendants 

know or have reason to know may have an impact on the effectiveness of the information 

security program. 

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III. 

DATA SECURITY ASSESSMENTS BY A THIRD PARTY 

IT IS FURTHER ORDERED that, in connection with compliance with the Section of 

this Order titled Mandated Data Security Program, Defendants must obtain initial and biennial 

assessments (“Assessments”): 

A. The Assessments must be obtained from a qualified, objective, independent thirdparty professional, who uses procedures and standards generally accepted in the profession. A 

professional qualified to prepare such Assessments must be: an individual qualified as a 

Certified Information System Security Professional (CISSP) or as a Certified Information 

Systems Auditor (CISA); an individual holding Global Information Assurance Certification 

(GIAC) from the SANS Institute; or a qualified individual or entity approved by the Associate 

Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission. 

B. The reporting period for the Assessments must cover: (1) the first 180 days after 

the issuance date of the Order for the initial Assessment; and (2) each 2-year period thereafter for 

20 years after issuance of the Order for the biennial Assessments. Each Assessment must: 

(1) set forth the specific administrative, technical, and physical safeguards 

that Defendants have implemented and maintained during the reporting period; 

(2) explain how such safeguards are appropriate to Defendants’ size and 

complexity, the nature and scope of Defendants’ activities, and the sensitivity of the 

personal information collected from or about consumers; 

(3) explain how the safeguards that have been implemented meet or exceed 

the protections required by the Section of this Order titled Mandated Data Security 

Program; and 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 6 of 15
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(4) certify that the security program is operating with sufficient effectiveness 

to provide reasonable assurance that the security, confidentiality, and integrity of 

personal information is protected and has so operated throughout the reporting period. 

C. Each Assessment must be completed within sixty (60) days after the end of the 

reporting period to which the Assessment applies. Defendants must submit the initial 

Assessment to the Commission within ten (10) days after the Assessment has been completed. 

Defendants must retain all subsequent biennial Assessments, at least until the Order terminates. 

Defendants must submit any biennial Assessments to the Commission within 10 days of a 

request from a representative of the Commission. 

IV. 

MONETARY JUDGMENT AND PARTIAL SUSPENSION 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of Eight Million, Seven Hundred and Fifty Thousand 

Dollars ($8,750,000) is entered in favor of the Commission against Defendants, jointly and 

severally, as equitable monetary relief. 

B. In partial satisfaction of the judgment against Defendants: 

(1) Defendants are ordered to pay to the Commission Eight Hundred and 

Twenty-Eight Thousand, Five Hundred Dollars ($828,500), which, as Defendants 

stipulate, their undersigned counsel holds in escrow for no purpose other than payment to 

the Commission. Such payment must be made within seven (7) days of entry of this 

Order by electronic fund transfer in accordance with instructions previously provided by 

a representative of the Commission. 

(2) Defendants are ordered to promptly remit to the Commission any funds 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 7 of 15
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received from the ALM’s Directors’ and Officers’ Trust (“Trust”) entered into on 

September 3, 2015, and amended on May 3, 2016, upon termination of the Trust, which 

can be triggered by the Trust’s Section 7.1(b)(ii) one (1) year after the date on which all 

liability and maintenance claims made against the Trust’s beneficiaries have been 

satisfied or resolved. 

Upon such payment and remittance described above in Subsections IV. B.(1) and (2), the 

remainder of the judgment is suspended, subject to Subsections IV.C-E. below. 

 C. The Commission’s agreement to the suspension of part of the judgment is 

expressly premised upon the truthfulness, accuracy, and completeness of Defendants’ sworn 

financial statements and related documents (collectively, “financial representations”) submitted 

to the Commission, dated September 30, 2016, October 17, 2016, and October 19, 2016. 

D. The suspension of the judgment will be lifted as to Defendants if, upon motion by 

the Commission, the Court finds that Defendants failed to disclose any material asset, materially 

misstated the value of any asset, or made any other material misstatement or omission in the 

financial representations identified in Subsection IV.C. above. 

E. If the suspension of the judgment is lifted, the judgment becomes immediately 

due as to Defendants in the amount specified in Subsection IV.A. above (which the parties 

stipulate only for purposes of this Section represents the consumer injury alleged in the 

Complaint), less any payment previously made pursuant to this Section, plus interest computed 

from the date of entry of this Order. 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 8 of 15
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V. 

ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. Defendants relinquish dominion and all legal and equitable right, title, and interest 

in all assets transferred pursuant to this Order and may not seek the return of any assets. 

B. The facts alleged in the Complaint will be taken as true, without further proof, in 

any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to 

enforce its rights to any payment or monetary judgment pursuant to this Order, such as a 

nondischargeability complaint in any bankruptcy case. 

C. The facts alleged in the Complaint establish all elements necessary to sustain an 

action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. § 

523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes. 

D. Defendants acknowledge that their Taxpayer Identification Numbers (Employer 

Identification Numbers) may be used for collecting and reporting on any delinquent amount 

arising out of this Order, in accordance with 31 U.S.C. § 7701. 

E. All money paid to the Commission pursuant to this Order may be deposited into a 

fund administered by the Commission or its designee to be used for equitable relief, including 

consumer redress and any attendant expenses for the administration of any redress fund. If a 

representative of the Commission decides that direct redress to consumers is wholly or partially 

impracticable or money remains after redress is completed, the Commission may apply any 

remaining money for such other equitable relief (including consumer information remedies) as it 

determines to be reasonably related to Defendants’ practices alleged in the Complaint. Any 

money not used for such equitable relief is to be deposited to the U.S. Treasury as disgorgement. 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 9 of 15
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Defendants have no right to challenge any actions the Commission or its representatives may 

take pursuant to this Subsection. 

VI. 

CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, servants, 

employees, and attorneys, and all other persons in active concert or participation with any of 

them, who receive actual notice of this Order, are permanently restrained and enjoined from 

directly or indirectly: 

A. failing to provide sufficient customer information to enable the Commission to 

efficiently administer consumer redress. If a representative of the Commission requests in 

writing any information related to redress, Defendants must provide it, in the form prescribed by 

the Commission, within fourteen (14) days; and 

B. disclosing, using, or benefitting from personal information of their online dating 

sites or mobile applications, including the name, address, telephone number, email address, 

social security number, other identifying information, or any data that enables access to a 

customer’s account (including a credit card, bank account, or other financial account), that 

Defendants obtained prior to entry of this Order in connection with the advertising, marketing, 

promoting, offering for sale, or selling of online dating services. Provided, however, that 

Defendants may use personal information for any current customer if Defendants comply with 

Section I of this Order. 

VII. 

ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 10 of 15
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this Order: 

A. Defendants, within seven (7) days of entry of this Order, must submit to the 

Commission an acknowledgment of receipt of this Order sworn under penalty of perjury. 

B. For five (5) years after entry of this Order, Defendants must deliver a copy of this 

Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all 

employees, agents, and representatives having supervisory responsibilities who participate in 

conduct related to the subject matters of the Order; and (3) any business entity resulting from any 

change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur 

within seven (7) days of entry of this Order for current personnel. For all others, delivery must 

occur before they assume their responsibilities. 

C. From each individual or entity to which Defendants delivered a copy of this 

Order, Defendants must obtain, within thirty (30) days, a signed and dated acknowledgment of 

receipt of this Order. 

VIII. 

COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to the 

Commission: 

A. One (1) year after entry of this Order, Defendants must submit a compliance 

report, sworn under penalty of perjury, in which Defendants must: (1) identify the primary 

physical, postal, and email address and telephone number, as designated points of contact, which 

representatives of the Commission, may use to communicate with Defendants; (2) identify all of 

Defendants’ businesses by all of their names, telephone numbers, and physical, postal, email, and 

Internet addresses; (3) describe the activities of each business, including the goods and services 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 11 of 15
 12 

offered, the means of advertising, marketing, and sales; (4) describe in detail whether and how 

Defendants are in compliance with each Section of this Order; and (5) provide a copy of each 

Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the 

Commission. 

B. For twenty (20) years after entry of this Order, Defendants must submit a 

compliance notice, sworn under penalty of perjury, within fourteen (14) days of any change in 

the following: (1) any designated point of contact; or (2) the structure of any entity doing 

business in the United States that Defendants have any ownership interest in or control directly 

or indirectly that may affect compliance obligations arising under this Order, including: 

creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that 

engages in any acts or practices subject to this Order. 

C. Defendants must submit to the Commission notice of the filing of any bankruptcy 

petition, insolvency proceeding, or similar proceeding by or against Defendants within fourteen 

(14) days of its filing. 

D. Any submission to the Commission required by this Order to be sworn under 

penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

concluding: “I declare under penalty of perjury under the laws of the United States of America 

that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s 

full name, title (if applicable), and signature. 

E. Unless otherwise directed by a Commission representative in writing, all 

submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or 

sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 12 of 15
 13 

Washington, D.C. 20580. The subject line must begin: FTC v. ruby Corp. et al., FTC Matter 

No. 1523284. 

IX. 

RECORDKEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records for twenty 

(20) years after entry of the Order, and retain each such record for five (5) years. Specifically, 

Defendants must create and retain the following records from their online dating websites and 

mobile applications, and any successor to those websites and mobile applications: 

A. accounting records showing the revenues from all goods or services sold; 

B. personnel records, showing, for each person providing services relating to the 

subject matters of the Order, whether as an employee or otherwise, that person’s: name; 

addresses; telephone numbers; job title or position; dates of service; and (if applicable) the 

reason for termination; 

C. records of all consumer complaints and refund requests, whether received directly 

or indirectly, such as through a third party, and any response; 

D. all records necessary to demonstrate full compliance with each Section of this 

Order, including all submissions to the Commission; and 

E. a copy of every materially different advertisement or other marketing material. 

X. 

COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendants’ 

compliance with this Order, including the financial representations upon which part of the 

judgment was suspended, and any failure to transfer any assets as required by this Order: 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 13 of 15
 14 

A. Within fourteen (14) days of receipt of a written request from a representative of 

the Commission, Defendants must: submit additional compliance reports or other requested 

information, which must be sworn under penalty of perjury; appear for depositions; and produce 

documents for inspection and copying. The Commission is also authorized to obtain discovery, 

without further leave of court, using any of the procedures prescribed by Federal Rules of Civil 

Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

B. For matters concerning this Order, the Commission is authorized to communicate 

directly with Defendants. Defendants must permit representatives of the Commission to 

interview any employee or other person affiliated with Defendants who has agreed to such an 

interview. The person interviewed may have counsel present. 

C. The Commission may use all other lawful means, including posing, through its 

representatives as consumers, suppliers, or other individuals or entities, to Defendants or any 

individual or entity affiliated with Defendants, without the necessity of identification or prior 

notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, 

pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1. 

XI. 

RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 

purposes of construction, modification, and enforcement of this Order. 

SO ORDERED this ___ day of _______________, 201_. 

 

UNITED STATES DISTRICT JUDGE 

 

Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 14 of 15
Case 1:16-cv-02438 Document 1-9 Filed 12/14/16 Page 15 of 15

SO STlPULA'? CJJA~D AGREE!): 

FOR P LA l~ JFF: 

Jl'El>F:RAl. TllADE COMMISSIO!'i 

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60l) Pelill::i/lv:-.maAvenue, N.W. 

\X-'ashingfo,.1, D.C 1058'0 

21>2-320-2570 {\Valk~r) 

2Cl2-32n-27l5 (Arrn8) . 

. Attorney~ for Plaintiff 

FFDh.RAL TRADE COM~HSSION 

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Att(:rn<.:ys for d~r c..111 s 

KURY COR.;""., Rl"iJY :.ffE e~C., ant! l\DL 

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Date: . --ll 110 r.J/~Df\d ' _______ .. _____ _ 

11/ 10/ 2016 

Date; - ·-·--- --- ---------

15