‘Sorry’ Ashley Madison target of FTC probe

The parent company of infidelity dating site Ashley Madison, hit by a devastating hack last year, is now the target of a Federal Trade Commission investigation, according to the executives seeking to revive its credibility.

The breach — which exposed the personal details of millions who signed up for the site with its slogan “Life is short. Have an affair” — cost Avid Life Media more than a quarter of its revenue, Chief Executive Rob Segal and President James Millership revealed in an interview, the first by any senior executives since the incident.

“We are profoundly sorry,” said Segal, adding that more could perhaps have been spent on security.

The two executives, hired in April, said the company is spending millions to improve security and looking at payment options that offer more privacy.

But it faces US and Canadian class- action lawsuits filed on behalf of customers whose personal data were posted online, and allegations it used fake profiles to manipulate some customers. The site’s male-to-female user ratio is 5 to 1, the executives said.

The site used computer programs, dubbed fembots, that impersonated women, striking up conversations with paying male customers. The company has since gotten rid of the fembots.

Avid said it does not know the focus of the regulatory probe. An FTC spokesman declined to comment.

Avid Life is on track to record roughly $80 million in revenue this year, with margin on earnings before interest, taxation, depreciation and amortization of 35 percent to 40 percent, said Millership.

Its 2015 revenue was $109 million, with a 49 percent margin.

The executives said the Ashley Madison name would endure, though it will look to attract more than those with infidelity on their mind.