Defunct MoviePass Settles FTC Allegations
Principals Mitchell Lowe and Theodore Farnsworth of defunct MoviePass theater subscriptions agreed to settle FTC allegations they tried to block subscribers from using the service as advertised and left personal data exposed, said the agency Monday. MoviePass invalidated passwords under…
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the false premise of having detected potential fraud on accounts, to thwart customers from viewing movies on their $9.95 monthly plans, said the FTC. MoviePass launched ticket verification to discourage use of the service, it said. Executives didn't take “reasonable steps to secure personal information it collected from subscribers,” it said. MoviePass stored consumers’ personal data, including financial information and email addresses, in “plain text” and failed to impose restrictions on who could access it, said the agency. It plans soon to publish a description of the “consent agreement package” in the Federal Register. MoviePass owners Helios and Matheson Analytics filed for Chapter 7 liquidation in January 2020. We couldn't reach Lowe and Farnsworth for comment Monday.