The Australian Privacy Commissioner, Timothy Pilgrim and The Privacy Commissioner of Canada, Daniel Therrien have released a joint report on the data breach of cheating website Ashley Madison which affected approximately 36 million Ashley Madison user accounts last year. Read our post on the breach here.

Controversially, despite the company not having a physical presence in Australia, the Commissioners found that Ashley Madison’s parent company Avid Life Media (ALM) was regulated as an “APP entity” due to the fact that it carried on business and collected personal information in Australia. This finding was based on the fact that ALM conducted marketing in Australia, targeted Australian residents for its services and collected the personal information of Australians.

ALM agreed to a number of enforceable undertakings to the Commissioner. Amongst other things, ALM has undertaken to augment its security framework, provide extensive security training for staff and cease its practice of retaining the information of users with deleted, deactivated or inactive accounts. Consistent with the trend in undertakings it requires independent verification of certain compliance steps. Find the undertakings here.

It also seeks to address the accuracy of the records, which is a challenge for a cheating website. Letting someone sign up using for example Tony Blair’s email address captured the attention of the regulators. They focused on the interests under Privacy laws of those whose email addresses were falsely added to the sign up. A confirming email with an option to opt out was not considered an adequate measure.

Read more about the report here.