The executives behind the failed theater ticket subscription company MoviePass have reached a settlement with the Federal Trade Commission, following charges that they misled customers and failed to protect its user’s data.
As reported by Variety, the FTC ruled against Helios and Matheson Analytics, the company which owned MoviePass, CEO Mitch Lowe, and Chairman Ted Farnsworth. It stated that they will be “barred from misrepresenting their business and data security practices.” In addition, any other businesses they own must “implement comprehensive information security programs.”
The FTC’s ruling comes nearly two years after MoviePass closed down. The service launched in 2017 and enabled subscribers to book tickets for one film a day for an incredible $10 per month. Unsurprisingly, the company quickly ran into financial issues, and regularly changed its policies as it tried to manage cashflow. MoviePass eventually wound down in September 2019.