FTC finalizes settlement with operators of MoviePass related to allegations they blocked subscribers from using movie service as advertised

Wednesday, October 6, 2021

MoviePass was not as advertised
The Federal Trade Commission has given final approval to a settlement with the operators of MoviePass over allegations they took steps to block subscribers from using the service as advertised, while also failing to secure subscribers’ personal data.

In a complaint and proposed settlement first announced in June 2021, the FTC alleged that MoviePass Inc.— along with CEO Mitchell Lowe, MoviePass parent company Helios and Matheson Analytics, Inc., and its CEO Theodore Farnsworth — deceptively marketed its “one movie per day” service, then deployed deceptive tactics aimed at preventing subscribers from using the service as advertised — actions the FTC alleged violated both the FTC Act and the Restore Online Shoppers’ Confidence Act. 

The FTC also alleged MoviePass’s operators left a database containing large amounts of subscribers’ personal information unencrypted and exposed, leading to unauthorized access.


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