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Ashley Madison - How should users be compensated after the data breach?

On July 19 2015 Ashley Madison's user data was compromised by hackers. These hackers are threatening to reveal personal information of all users unless the site is taken down. The reasoning for the hack was due to a "service" Ashley Madison offered call "Full Delete" where users can pay $19 to have their information removed from the website. According to the hackers, even after the payment for removal, the data still exists on Now 37 million users may have their private information leaked to the public. Ashley Madison has offered no updates as of the posting of this trial and concerned users are left in the dark about what's happening. The site is still open and selling new subscriptions.

How should Ashley Madison handle this situation?
Noel Biderman at

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    • [-][+]My resolution
    • 2 Points
    • 9 years ago
    Samira A. (Neutral)
    Credit Report? – Has credit reports been affected? Identity theft issues?
    As for personal issues, it is a public site and being caught cheating is a risk the customers took on their own behalf.
    Settlement suggestion: 3.7Billion = 10k Per Person
    Unless clients can prove their financial institution or identity was stolen and used for malicious purposes the amount is a reasonable apologetic gesture.
      • [-][+]My resolution
      • 9 years ago
      Sandra J. (Advocate for respondent)
      Ashley Madison's owners made big money, by taking big risks with their client's information; they should pay big damages for the harm they've created. – This is pretty easy. Ashely Madison should be responsible for any damaged caused by any violation of their terms that can be confirmed. IF they didn't encrypt info as promised, they should be fully liable for any harm. If they didn't remove or sufficiently protect info that users paid to have hidden, they should be liable. If they didn't properly protect obviously confidential info from employees who might compromise that info, they should be liable. Not sure how you'd calculate the damage of destroying someone's relationship by negligence, but I'd say $250,000 per case for anyone who can prove that they're relationship was directly harmed by Ashley Madison negligence, plus additional damages for any additional harm to reputation, jobs, political position etc depending upon the calculable damages.
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      PeopleClaim is a pre-litigation negotiation platform that allows parties to combine claims against counterparties in order to negotiate group or individual settlements that avoid litigation, increase recovery amounts, and settle cases more constructively. The process does not requre a lawyer or legal representation and does not carry the force of law. Read more...
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