New York Attorney General Andrew Cuomo (KWOH'-moh) said in July that he planned to sue Tagged for deceptive marketing and invasion of privacy for raiding private accounts.

On Monday, the company said it voluntarily proposed reforms and is "thrilled" the dispute is over.

Cuomo said Tagged won't access contacts or send messages without members' informed permission. It also will provide clear and conspicuous disclosures.

Tagged will pay $500,000 in penalties and costs to New York. The site also reached an agreement with Texas, although terms of that settlement were not immediately available.

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