MoviePass settles with FTC over fraud and data security failures
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MoviePass settles with FTC over fraud and data security failures

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On Monday, the Federal Trade Commission charged the executives of the long-defunct MoviePass app over allegations that they fraudulently blocked customers from using the service as advertised while failing to protect their data privacy. The FTC also announced that it had reached a settlement with MoviePass and its executives as a result of the investigation.

Under the proposed settlement, MoviePass, its parent company Helios and Matheson Analytics, its 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.

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