Helios and Matheson Analytics, the operators of now-defunct movie ticket subscription service MoviePass, have reached a settlement with the Federal Trade Commission (FTC).
This reportedly resolves concerns over allegations that they fraudulently blocked customers from using the service as advertised while failing to protect their data privacy.
The FTC complaint accuses the company of employing several tricks to keep subscribers from falsely invalidating customer passwords over “suspicious activity,” and a ticket verification program as a means of discouraging people from using the service.
Under the proposed settlement, MoviePass, Helios and Matheson Analytics, CEO Mitch Lowe and chairman Ted Farnsworth are forbidden from falsely representing their business and data security practices to customers.
Any businesses controlled by these entities are also required to roll out comprehensive information security programs to protect consumers. As both companies have declared bankruptcy, there is no monetary penalty involved.
