The company also inappropriately retained some personal information after profiles had been deactivated or deleted by users and did not adequately ensure the accuracy of customer email addresses, the report said.
This meant some people who had never signed up for Ashley Madison were included in databases published online after the hack, it said.
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The FTC could not immediately be reached for comment.
The investigation conducted jointly by the Office of the Privacy Commissioner of Canada and the Office of the Australian Information Commissioner found certain information security safeguards were insufficient or absent at the time of the hacking attack.
At the time of the breach, Ashley Madison’s home page displayed various trustmarks suggesting a high level of security, including an icon labelled “trusted security award”, the report said.
You provide an email address and we search thousands of online dating web sites and social networks to catch your spouse cheating online.Don’t send money to tide someone over after a mugging or robbery, and don’t do anyone a favor by making an online purchase or forwarding a package to another country.One request leads to another, and delays and disappointments will follow.In the end, the money will be gone along with the person you thought you knew.Ashley Madison dating website: a joint investigation by the offices of the Australian and Canadian privacy commissioners has concluded that Avid Life Media, which operates the website, “had inadequate security safeguards and policies” in place prior to a July 2015 hack.