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Social Network Tagged Settles Marketing Suits

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Social network Tagged has settled lawsuits with attorneys general in New York and Texas over its controversial marketing practices. The social network — which has raised about $14 million — was sued in July for allegedly tricking members into giving it access to their e-mail inboxes and then sending out promotional e-mails.

Tagged will pay $750,000 in fines and costs to New York State and Texas. It’s also agreed to “adopt industry-leading measures regarding the access and use of its members’ personal information,” according to a press release from the New York State Attorney General office.

In a blog post, founder Greg Tseng says that while the company had argued that its practices were “honorable” it had agreed that its marketing had “aggravated some customers” and that it had a “responsibility to make sure that people who interact with Tagged have a positive experience.” The issue has put a cloud over Tagged’s prospects — so understandably Tseng says he’s “thrilled to put the dispute behind us.”