MoviePass, Inc.; Analysis of Proposed Consent Order To Aid Public Comment, 32039-32041 [2021-12701]

Download as PDF Federal Register / Vol. 86, No. 114 / Wednesday, June 16, 2021 / Notices Board of Governors of the Federal Reserve System, June 11, 2021. Michele Taylor Fennell, Deputy Associate Secretary of the Board. [FR Doc. 2021–12686 Filed 6–15–21; 8:45 am] BILLING CODE P FEDERAL RESERVE SYSTEM jbell on DSKJLSW7X2PROD with NOTICES Formations of, Acquisitions by, and Mergers of Bank Holding Companies The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below. The public portions of the applications listed below, as well as other related filings required by the Board, if any, are available for immediate inspection at the Federal Reserve Bank(s) indicated below and at the offices of the Board of Governors. This information may also be obtained on an expedited basis, upon request, by contacting the appropriate Federal Reserve Bank and from the Board’s Freedom of Information Office at https://www.federalreserve.gov/foia/ request.htm. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843), and interested persons may express their views in writing on the standards enumerated in section 4. Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors, Ann E. Misback, Secretary of the Board, 20th Street and Constitution Avenue NW, Washington, DC 20551–0001, not later than July 16, 2021. A. Federal Reserve Bank of Minneapolis (Chris P. Wangen, Assistant Vice President), 90 Hennepin Avenue, Minneapolis, Minnesota 55480–0291: VerDate Sep<11>2014 17:27 Jun 15, 2021 Jkt 253001 1. MidCountry Acquisition Corp., Minneapolis, Minnesota; a savings and loan holding company, to become a bank holding company by (1) merging with J & B Financial Holdings, Inc., Minneapolis, Minnesota, and thereby indirectly acquiring 1st United Bank, Faribault, Minnesota; First State Bank of Sauk Centre, Sauk Centre, Minnesota; and Red Rock Bank, Sanborn, Minnesota; and (2) merging with Northfield Bancshares, Inc, and thereby indirectly acquiring Community Resource Bank, both of Northfield, Minnesota. Additionally, MidCountry Acquisition Corp., to retain MidCountry Bank, Bloomington, Minnesota, and thereby engage in operating a savings association pursuant to section 225.28(b)(4)(ii) of the Board’s Regulation Y; and to acquire First State Agency, Inc., Sauk Centre, Minnesota, and thereby indirectly engage in general insurance agency activity through a lending office located in a place that has a population not exceeding 5,000 pursuant to section 225.28(b)(11)(iii)(A) of the Board’s Regulation Y. Board of Governors of the Federal Reserve System, June 11, 2021. Michele Taylor Fennell, Deputy Associate Secretary of the Board. [FR Doc. 2021–12688 Filed 6–15–21; 8:45 am] BILLING CODE P FEDERAL TRADE COMMISSION [File No. 192 3000] MoviePass, Inc.; Analysis of Proposed Consent Order To Aid Public Comment Federal Trade Commission. Proposed consent agreement; request for comment. AGENCY: ACTION: The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis of Proposed Consent Order to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order— embodied in the consent agreement— that would settle these allegations. DATES: Comments must be received on or before July 16, 2021. ADDRESSES: Interested parties may file comments online or on paper by following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION section below. Please write ‘‘MoviePass, Inc.; File No. 192 3000’’ on your comment, and file your comment online at https:// www.regulations.gov by following the SUMMARY: PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 32039 instructions on the web-based form. If you prefer to file your comment on paper, mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC–5610 (Annex D), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. FOR FURTHER INFORMATION CONTACT: Thomas B. Carter (214–979–9372), Federal Trade Commission, Southwest Regional Office, 199 Bryan Street, Suite 2150, Dallas, TX 75201. SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, notice is hereby given that the above-captioned consent agreement containing a consent order to cease and desist, having been filed with and accepted, subject to final approval, by the Commission, has been placed on the public record for a period of thirty (30) days. The following Analysis to Aid Public Comment describes the terms of the consent agreement and the allegations in the complaint. An electronic copy of the full text of the consent agreement package can be obtained at https:// www.ftc.gov/news-events/commissionactions. You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before July 16, 2021. Write ‘‘MoviePass, Inc.; File No. 192 3000’’ on your comment. Your comment—including your name and your state—will be placed on the public record of this proceeding, including, to the extent practicable, on the https:// www.regulations.gov website. Due to the COVID–19 pandemic and the agency’s heightened security screening, postal mail addressed to the Commission will be subject to delay. We strongly encourage you to submit your comments online through the https:// www.regulations.gov website. If you prefer to file your comment on paper, write ‘‘MoviePass, Inc.; File No. 192 3000’’ on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC–5610 (Annex D), Washington, DC 20580; or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex D), E:\FR\FM\16JNN1.SGM 16JNN1 jbell on DSKJLSW7X2PROD with NOTICES 32040 Federal Register / Vol. 86, No. 114 / Wednesday, June 16, 2021 / Notices Washington, DC 20024. If possible, submit your paper comment to the Commission by courier or overnight service. Because your comment will be placed on the publicly accessible website at https://www.regulations.gov, you are solely responsible for making sure your comment does not include any sensitive or confidential information. In particular, your comment should not include sensitive personal information, such as your or anyone else’s Social Security number; date of birth; driver’s license number or other state identification number, or foreign country equivalent; passport number; financial account number; or credit or debit card number. You are also solely responsible for making sure your comment does not include sensitive health information, such as medical records or other individually identifiable health information. In addition, your comment should not include any ‘‘trade secret or any commercial or financial information which . . . is privileged or confidential’’—as provided by Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— including in particular competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names. Comments containing material for which confidential treatment is requested must be filed in paper form, must be clearly labeled ‘‘Confidential,’’ and must comply with FTC Rule 4.9(c). In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. See FTC Rule 4.9(c). Your comment will be kept confidential only if the General Counsel grants your request in accordance with the law and the public interest. Once your comment has been posted on the https:// www.regulations.gov website—as legally required by FTC Rule 4.9(b)—we cannot redact or remove your comment from that website, unless you submit a confidentiality request that meets the requirements for such treatment under FTC Rule 4.9(c), and the General Counsel grants that request. Visit the FTC website at http:// www.ftc.gov to read this Notice and the news release describing the proposed settlement. The FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in this proceeding, as appropriate. The Commission will VerDate Sep<11>2014 17:27 Jun 15, 2021 Jkt 253001 consider all timely and responsive public comments that it receives on or before July 16, 2021. For information on the Commission’s privacy policy, including routine uses permitted by the Privacy Act, see https://www.ftc.gov/ site-information/privacy-policy. Analysis of Proposed Consent Order To Aid Public Comment The Federal Trade Commission (‘‘FTC’’ or ‘‘Commission’’) has accepted, subject to final approval, an agreement containing a proposed consent order (‘‘Proposed Order’’) from MoviePass, Inc., a corporation, Helios and Matheson Analytics, Inc. (‘‘Helios’’), a corporation, Mitchell Lowe, individually and as an officer of MoviePass, Inc., and Theodore Farnsworth, individually and as an officer of Helios (‘‘Respondents’’). The Proposed Order has been placed on the public record for 30 days to receive comments by interested persons. Comments received during this period will become part of the public record. After 30 days, the Commission will again review the agreement and the comments received and will decide whether it should withdraw from the agreement and take appropriate action or make final the agreement’s Proposed Order. This matter involves Respondents’ advertising, promotion and sale of the movie-viewing subscription service ‘‘MoviePass,’’ which offered consumers access to one movie per day at their local movie theaters for a monthly subscription price. The FTC complaint challenges two aspects of Respondents’ marketing of MoviePass: First, the complaint alleges that Respondents’ offer of one movie per day was deceptive due to several measures Respondents took to prevent consumers from using the service as promised— measures that included invalidating certain consumers’ passwords, adding a difficult and defective ticket verification procedure to view movies, and placing undisclosed usage caps on frequent users. The complaint alleges that this conduct violated two laws the FTC enforces. First, the FTC alleges the conduct to be a ‘‘deceptive act[ ] or practice[ ]’’ that violates Section 5(a) of the Federal Trade Commission Act (‘‘FTC Act’’), 15 U.S.C. 45(a). The conduct described above was deceptive because Respondents engaged in it to prevent consumers from using MoviePass once per day as advertised. Second, the FTC alleges that Respondents violated the Restore Online Shoppers’ Confidence Act (‘‘ROSCA’’), 15 U.S.C. 8403, through the same conduct by failing to disclose the PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 steps that they took to prevent consumers from using MoviePass once per day. This failure violated ROSCA in two ways—by failing to disclose all material terms of the transaction as required by 15 U.S.C. 8403(1) and by failing to secure consumers’ express informed consent to the transaction before charging their financial accounts as required by 15 U.S.C. 8403(2). In addition to the deceptive marketing of MoviePass’s ‘‘one movie per day’’ service, the complaint further alleges that Respondents MoviePass, Inc., Helios, and Lowe misrepresented the data security measures they took to protect consumers’ personal information against unauthorized access. The complaint alleges that Respondents’ actions constitute unfair or 1 deceptive acts or practices and the making of false advertisements, in violation of Section 5(a) of the FTC Act. The Proposed Order is designed to prevent Respondents from engaging in similar acts or practices in the future. It includes injunctive relief to address these alleged violations and to prohibit similar and related conduct: • Part I prohibits Respondents from future misrepresentations similar to those at issue in the complaint by prohibiting them from misrepresenting that: Æ A service will allow consumers to view one movie per day at their local theaters; Æ A service will allow consumers to view any movie, in any theater, at any time; and Æ Respondents will take reasonable administrative, technical, physical, or managerial measures to protect consumers’ personal information from unauthorized access. • Part I also features ancillary relief relating to the challenged conduct by prohibiting misrepresentations relating to (1) the total costs to purchase, receive, or use, and the quantity of, any good or service, (2) any material restrictions, limitations, or conditions to purchase, receive, or use the product or service, (3) the extent to which Respondents otherwise protect the privacy, security, availability, confidentiality, or integrity of consumers’ personal information, and (4) any other material fact. • Parts II–VI provide ancillary relief relating to the data security practices of MoviePass, Inc., Helios, and Lowe. The provisions thus only apply to businesses these three respondents operate. Æ Part II requires a comprehensive information security program for any enterprise that collects consumers’ personal information, requiring among other things: E:\FR\FM\16JNN1.SGM 16JNN1 jbell on DSKJLSW7X2PROD with NOTICES Federal Register / Vol. 86, No. 114 / Wednesday, June 16, 2021 / Notices D That the information security program contain safeguards that are based on the volume and sensitivity of the personal information at risk; D That testing and monitoring of the safeguards are conducted regularly but no less often than once a year; and D That the information security program be documented, evaluated, and adjusted in light of any changes to business operations or new technological advancements. Æ Parts III and IV respectively require the three respondents (1) to obtain an initial and then biennial third-party information security assessments and (2) to cooperate with the third parties conducting the assessments. Æ Part V requires the three respondents to report to the Commission any event involving consumers’ personal information that constitutes a reportable event to any U.S. federal, state, or local government authority. Æ Part VI mandates that the three respondents submit an annual certification regarding their compliance with the Proposed Order’s data security requirements. • Parts VII through XI are reporting and compliance provisions. Part VII mandates that all Respondents acknowledge receipt of the Proposed Order and, for 20 years, distribute the Proposed Order to certain employees and agents and secure acknowledgments from recipients of the Proposed Order. Part VIII requires that Respondents submit compliance reports to the FTC one year after the order’s issuance and submit additional reports when certain events occur. Part IX requires that, for 20 years, Respondents create certain records and retain them for at least 5 years. Part X provides for the FTC’s continued compliance monitoring of Respondents’ activity during the Proposed Order’s effective dates. Part XI is a provision ‘‘sunsetting’’ the Proposed Order after 20 years, with certain exceptions. Respondents MoviePass, Inc. and Helios are exempt from Sections II–X of the Proposed Order until their bankruptcy cases are closed, and these bankruptcies led the FTC to not seek a monetary judgment in this matter. The purpose of this analysis is to facilitate public comment on the Proposed Order. It is not intended to constitute an official interpretation of the complaint or Proposed Order, or to modify in any way the Proposed Order’s terms. VerDate Sep<11>2014 17:27 Jun 15, 2021 Jkt 253001 By direction of the Commission. Joel Christie, Acting Secretary. [FR Doc. 2021–12701 Filed 6–15–21; 8:45 am] BILLING CODE 6750–01–P DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Disease Control and Prevention Temporary Suspension of Dogs Entering the United States From HighRisk Rabies Countries Centers for Disease Control and Prevention (CDC), Department of Health and Human Services (HHS). ACTION: Notice. AGENCY: The Centers for Disease Control and Prevention (CDC) within the Department of Health and Human Services (HHS) announces a temporary suspension in the importation of dogs from high-risk rabies-enzootic countries (hereinafter referred to as high-risk country or countries) into the United States. Due to the unprecedented global response to the Coronavirus Disease 2019 (COVID–19) pandemic and limited availability of public health resources at the Federal, state, and local level, this action is necessary to protect the public health against the reintroduction of canine rabies virus variant (CRVV) into the United States and to ensure the welfare of dogs being imported into the U.S. This suspension, with limited exceptions, includes dogs imported from low-risk or CRVV-free countries if the dogs have been in any high-risk countries during the previous six months. SUMMARY: DATES: This notice is effective July 14, 2021. For information regarding this notice contact: Ashley C. Altenburger, J.D., Division of Global Migration and Quarantine, Centers for Disease Control and Prevention, 1600 Clifton Road NE, MS–H16–4, Atlanta, GA 30329 or 404– 498–1600. For information regarding HHS/CDC regulations for the importation of dogs, please contact: Dr. Emily Pieracci, D.V.M., Division of Global Migration and Quarantine, Centers for Disease Control and Prevention, 1600 Clifton Road NE, MS–V–18–2, Atlanta, GA 30329 or 404–498–1600. Either Mrs. Altenburger or Dr. Pieracci may also be reached by email at CDCAnimalImports@cdc.gov. SUPPLEMENTARY INFORMATION: FOR FURTHER INFORMATION CONTACT: PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 32041 I. Background and Authority Rabies, one of the deadliest zoonotic diseases, accounts for an estimated 59,000 human deaths globally each year 1—which equates to one human death every 9 minutes. Canine rabies virus variant (CRVV) is responsible for 98% of these deaths.2 The rabies virus can infect any mammal, and once clinical signs appear, the disease is almost always fatal.2 In September 2007, at the Inaugural World Rabies Day Symposium, HHS/CDC declared the United States to be free of CRVV. However, this rabies virus variant is still a serious public health threat in the more than 120 countries where CRVV remains enzootic. Preventing the entry of animals infected with CRVV into the United States is a public health priority. Under section 361 of the Public Health Service Act (PHS Act) (42 U.S.C. 264), the Secretary of Health and Human Services may make and enforce such regulations as in the Secretary’s judgment are necessary to prevent the introduction, transmission, or spread of communicable diseases from foreign countries into the United States and from one State or possession into any other State or possession.3 Since at least 1956, Federal quarantine regulations (currently found at 42 CFR 71.51) have controlled the entry of dogs into the United States. See 21 FR 9870, Dec. 12, 1956. One of the principal goals of these regulations is to prevent the reintroduction and spread of CRVV into the United States. While the United States continues to have bat rabies lyssavirus (rabies viruses that are enzootic to bat populations) and multiple terrestrial variants of rabies circulating in wildlife species (e.g. fox, raccoon, skunk), it has been free of CRVV since 2007 and now focuses its regulatory efforts on preventing the reintroduction of this rabies variant. Under 42 CFR 71.51, all dogs admitted into the United States must be accompanied by a valid rabies vaccination certificate.4 This 1 WHO Technical Report Series 1012, 2018; Page 6. 2 Fooks AR, Banyard AC, Horton DL, Johnson N, McElhinney LM, Jackson AC. Current status of rabies and prospects for elimination. Lancet 2014;384:1389–99. 3 Although the statute assigns authority to the Surgeon General, all statutory powers and functions of the Surgeon General were transferred to the Secretary of HHS in 1966, 31 FR 8855, 80 Stat. 1610 (June 25, 1966), see also Public Law 96–88, 509(b), October 17, 1979, 93 Stat. 695 (codified at 20 U.S.C. 3508(b)). The Secretary has retained these authorities despite the reestablishment of the Office of the Surgeon General in 1987. 4 https://www.cdc.gov/importation/bringing-ananimal-into-the-united-states/vaccinecertificate.html. E:\FR\FM\16JNN1.SGM 16JNN1

Agencies

[Federal Register Volume 86, Number 114 (Wednesday, June 16, 2021)]
[Notices]
[Pages 32039-32041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12701]


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FEDERAL TRADE COMMISSION

[File No. 192 3000]


MoviePass, Inc.; Analysis of Proposed Consent Order To Aid Public 
Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement; request for comment.

-----------------------------------------------------------------------

SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices. The attached Analysis of Proposed Consent Order to Aid 
Public Comment describes both the allegations in the draft complaint 
and the terms of the consent order--embodied in the consent agreement--
that would settle these allegations.

DATES: Comments must be received on or before July 16, 2021.

ADDRESSES: Interested parties may file comments online or on paper by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Please write ``MoviePass, 
Inc.; File No. 192 3000'' on your comment, and file your comment online 
at https://www.regulations.gov by following the instructions on the 
web-based form. If you prefer to file your comment on paper, mail your 
comment to the following address: Federal Trade Commission, Office of 
the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex D), 
Washington, DC 20580, or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Constitution Center, 
400 7th Street SW, 5th Floor, Suite 5610 (Annex D), Washington, DC 
20024.

FOR FURTHER INFORMATION CONTACT: Thomas B. Carter (214-979-9372), 
Federal Trade Commission, Southwest Regional Office, 199 Bryan Street, 
Suite 2150, Dallas, TX 75201.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing a consent order to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been 
placed on the public record for a period of thirty (30) days. The 
following Analysis to Aid Public Comment describes the terms of the 
consent agreement and the allegations in the complaint. An electronic 
copy of the full text of the consent agreement package can be obtained 
at https://www.ftc.gov/news-events/commission-actions.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before July 16, 2021. 
Write ``MoviePass, Inc.; File No. 192 3000'' on your comment. Your 
comment--including your name and your state--will be placed on the 
public record of this proceeding, including, to the extent practicable, 
on the https://www.regulations.gov website.
    Due to the COVID-19 pandemic and the agency's heightened security 
screening, postal mail addressed to the Commission will be subject to 
delay. We strongly encourage you to submit your comments online through 
the https://www.regulations.gov website.
    If you prefer to file your comment on paper, write ``MoviePass, 
Inc.; File No. 192 3000'' on your comment and on the envelope, and mail 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex D), 
Washington, DC 20580; or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Constitution Center, 
400 7th Street SW, 5th Floor, Suite 5610 (Annex D),

[[Page 32040]]

Washington, DC 20024. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Because your comment will be placed on the publicly accessible 
website at https://www.regulations.gov, you are solely responsible for 
making sure your comment does not include any sensitive or confidential 
information. In particular, your comment should not include sensitive 
personal information, such as your or anyone else's Social Security 
number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. You are also 
solely responsible for making sure your comment does not include 
sensitive health information, such as medical records or other 
individually identifiable health information. In addition, your comment 
should not include any ``trade secret or any commercial or financial 
information which . . . is privileged or confidential''--as provided by 
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 
16 CFR 4.10(a)(2)--including in particular competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    Comments containing material for which confidential treatment is 
requested must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular, 
the written request for confidential treatment that accompanies the 
comment must include the factual and legal basis for the request, and 
must identify the specific portions of the comment to be withheld from 
the public record. See FTC Rule 4.9(c). Your comment will be kept 
confidential only if the General Counsel grants your request in 
accordance with the law and the public interest. Once your comment has 
been posted on the https://www.regulations.gov website--as legally 
required by FTC Rule 4.9(b)--we cannot redact or remove your comment 
from that website, unless you submit a confidentiality request that 
meets the requirements for such treatment under FTC Rule 4.9(c), and 
the General Counsel grants that request.
    Visit the FTC website at http://www.ftc.gov to read this Notice and 
the news release describing the proposed settlement. The FTC Act and 
other laws that the Commission administers permit the collection of 
public comments to consider and use in this proceeding, as appropriate. 
The Commission will consider all timely and responsive public comments 
that it receives on or before July 16, 2021. For information on the 
Commission's privacy policy, including routine uses permitted by the 
Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``FTC'' or ``Commission'') has 
accepted, subject to final approval, an agreement containing a proposed 
consent order (``Proposed Order'') from MoviePass, Inc., a corporation, 
Helios and Matheson Analytics, Inc. (``Helios''), a corporation, 
Mitchell Lowe, individually and as an officer of MoviePass, Inc., and 
Theodore Farnsworth, individually and as an officer of Helios 
(``Respondents''). The Proposed Order has been placed on the public 
record for 30 days to receive comments by interested persons. Comments 
received during this period will become part of the public record. 
After 30 days, the Commission will again review the agreement and the 
comments received and will decide whether it should withdraw from the 
agreement and take appropriate action or make final the agreement's 
Proposed Order.
    This matter involves Respondents' advertising, promotion and sale 
of the movie-viewing subscription service ``MoviePass,'' which offered 
consumers access to one movie per day at their local movie theaters for 
a monthly subscription price. The FTC complaint challenges two aspects 
of Respondents' marketing of MoviePass:
    First, the complaint alleges that Respondents' offer of one movie 
per day was deceptive due to several measures Respondents took to 
prevent consumers from using the service as promised--measures that 
included invalidating certain consumers' passwords, adding a difficult 
and defective ticket verification procedure to view movies, and placing 
undisclosed usage caps on frequent users.
    The complaint alleges that this conduct violated two laws the FTC 
enforces. First, the FTC alleges the conduct to be a ``deceptive act[ ] 
or practice[ ]'' that violates Section 5(a) of the Federal Trade 
Commission Act (``FTC Act''), 15 U.S.C. 45(a). The conduct described 
above was deceptive because Respondents engaged in it to prevent 
consumers from using MoviePass once per day as advertised. Second, the 
FTC alleges that Respondents violated the Restore Online Shoppers' 
Confidence Act (``ROSCA''), 15 U.S.C. 8403, through the same conduct by 
failing to disclose the steps that they took to prevent consumers from 
using MoviePass once per day. This failure violated ROSCA in two ways--
by failing to disclose all material terms of the transaction as 
required by 15 U.S.C. 8403(1) and by failing to secure consumers' 
express informed consent to the transaction before charging their 
financial accounts as required by 15 U.S.C. 8403(2).
    In addition to the deceptive marketing of MoviePass's ``one movie 
per day'' service, the complaint further alleges that Respondents 
MoviePass, Inc., Helios, and Lowe misrepresented the data security 
measures they took to protect consumers' personal information against 
unauthorized access. The complaint alleges that Respondents' actions 
constitute unfair or 1 deceptive acts or practices and the making of 
false advertisements, in violation of Section 5(a) of the FTC Act.
    The Proposed Order is designed to prevent Respondents from engaging 
in similar acts or practices in the future. It includes injunctive 
relief to address these alleged violations and to prohibit similar and 
related conduct:
     Part I prohibits Respondents from future 
misrepresentations similar to those at issue in the complaint by 
prohibiting them from misrepresenting that:
    [cir] A service will allow consumers to view one movie per day at 
their local theaters;
    [cir] A service will allow consumers to view any movie, in any 
theater, at any time; and
    [cir] Respondents will take reasonable administrative, technical, 
physical, or managerial measures to protect consumers' personal 
information from unauthorized access.
     Part I also features ancillary relief relating to the 
challenged conduct by prohibiting misrepresentations relating to (1) 
the total costs to purchase, receive, or use, and the quantity of, any 
good or service, (2) any material restrictions, limitations, or 
conditions to purchase, receive, or use the product or service, (3) the 
extent to which Respondents otherwise protect the privacy, security, 
availability, confidentiality, or integrity of consumers' personal 
information, and (4) any other material fact.
     Parts II-VI provide ancillary relief relating to the data 
security practices of MoviePass, Inc., Helios, and Lowe. The provisions 
thus only apply to businesses these three respondents operate.
    [cir] Part II requires a comprehensive information security program 
for any enterprise that collects consumers' personal information, 
requiring among other things:

[[Page 32041]]

    [ssquf] That the information security program contain safeguards 
that are based on the volume and sensitivity of the personal 
information at risk;
    [ssquf] That testing and monitoring of the safeguards are conducted 
regularly but no less often than once a year; and
    [ssquf] That the information security program be documented, 
evaluated, and adjusted in light of any changes to business operations 
or new technological advancements.
    [cir] Parts III and IV respectively require the three respondents 
(1) to obtain an initial and then biennial third-party information 
security assessments and (2) to cooperate with the third parties 
conducting the assessments.
    [cir] Part V requires the three respondents to report to the 
Commission any event involving consumers' personal information that 
constitutes a reportable event to any U.S. federal, state, or local 
government authority.
    [cir] Part VI mandates that the three respondents submit an annual 
certification regarding their compliance with the Proposed Order's data 
security requirements.
     Parts VII through XI are reporting and compliance 
provisions. Part VII mandates that all Respondents acknowledge receipt 
of the Proposed Order and, for 20 years, distribute the Proposed Order 
to certain employees and agents and secure acknowledgments from 
recipients of the Proposed Order. Part VIII requires that Respondents 
submit compliance reports to the FTC one year after the order's 
issuance and submit additional reports when certain events occur. Part 
IX requires that, for 20 years, Respondents create certain records and 
retain them for at least 5 years. Part X provides for the FTC's 
continued compliance monitoring of Respondents' activity during the 
Proposed Order's effective dates. Part XI is a provision ``sunsetting'' 
the Proposed Order after 20 years, with certain exceptions. Respondents 
MoviePass, Inc. and Helios are exempt from Sections II-X of the 
Proposed Order until their bankruptcy cases are closed, and these 
bankruptcies led the FTC to not seek a monetary judgment in this 
matter.
    The purpose of this analysis is to facilitate public comment on the 
Proposed Order. It is not intended to constitute an official 
interpretation of the complaint or Proposed Order, or to modify in any 
way the Proposed Order's terms.

    By direction of the Commission.
Joel Christie,
Acting Secretary.
[FR Doc. 2021-12701 Filed 6-15-21; 8:45 am]
BILLING CODE 6750-01-P