Tagged.com has agreed to pay $400,000 in civil penalties and $250,000 to pay for the cost of the investigation.
It sent as many as 60 million e-mails last year, telling people it had pictures or private messages they might want, but they had to register at Tagged to get them.
Registering gave Tagged access to recipient's e-mail contact list.
Tagged claims it had responded to complaints by stopping the e-mail campaign before the investigation began.