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As Newitz explains, “Ashley Madison created more than 70,000 female bots to send male users millions of fake messages, hoping to create the illusion of a vast playland of available women.” So men sitting at their computers getting turned on by naughty messages were often chatting with non-existent women — and paying for the privilege.

We don’t know how many, nor how often, but we know they were doing it.”Beyond reputational damage, Ashley Madison will likely face legal battles. The company’s failure to protect customer data is the big complaint, especially because Ashley Madison’s parent company raked in millions selling “full delete” packages that obviously didn’t work for users who wanted to shut down and remove their accounts.

Experts are saying that the FTC may be investigating but not saying anything since it isn't required to make public statements.

Attorney James Ward told Forbes that the notoriety of the case makes it highly likely that action will be taken.

On the other hand, the fact that the parent company, Avid Life, is Canadian raises the question of the FTC’s jurisdiction.

But the regulators have pursued Canadian companies before, so they may well do so in this case.

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