FTC Settles Security Claims With Both MoviePass And Its Owners

MoviePass, a movie subscription service, has agreed to a proposed settlement with the FTC over alleged deception and lack of security allegations. The now-defunct company not only allegedly marketed its service as a "one movie per day" service – yet took steps to actively deny subscribers such access – it also failed, according to the FTC, to secure subscriber's personal data. The company also was alleged to have violated the Restore Online Shoppers' Confident Act, which impacts the offering of "negative option" (subscription) services.

With respect to the security allegations, MoviePass's privacy policy stated that it used reasonable measures to protection personal information. Statements included that the company "takes information security very seriously," that it "uses reasonable administrative, technical, physical, and managerial measures to protect [consumers'] personal details from unauthorized access" and that email addresses and payment information were