MoviePass settles FTC allegations that they limited usage, exposed user data

If a private individual did the things set out here they&#x27;d be criminally liable. When a company executive orders employees to do these things, they&#x27;re not facing any criminal complaint at all (any of them). See also Wells Fargo multiple thefts (both fraudulent accounts with fees, and literally entire homes&#x2F;all possessions).<p>It is pretty evident that many laws are constructed (e.g. CFAA) wherein there&#x27;s one rule for individuals and a completely different rule for executives&#x2F;companies.<p>I understand that the FTC themselves cannot jail people. I don&#x27;t understand why the justice department cannot.

&gt; First, according to the FTC, MoviePass’s operators invalidated subscriber passwords while falsely claiming to have detected “suspicious activity or potential fraud” on the accounts. MoviePass&#x27;s operators did this even though some of its own executives raised questions about the scheme, according to the complaint.<p>I&#x27;m going to go out on a limb and say the only reason the FTC was able to establish intent was because someone complained via email or text.<p>I try not to think about how much illegal activity like this happens all the time that is not prosecutable just because everyone with a modicum of morals was smart enough not to say anything on record.

I thought I was just terrible with using my password manager….<p>This happened to me at least a couple times back in 2016 when I was seeing 2+ movies with MoviePass. I would get to the movie theater and all of a sudden be locked out. I would need to reset my password standing on the curb waiting to get a damn email over 500kbps LTE.<p>Good to know it wasn’t my fault and that the public in general is now aware of this behavior.

&quot;Under the proposed settlement, MoviePass, Inc ...will be barred from misrepresenting their business and data security practices.&quot;<p>Isn&#x27;t this how things are supposed to be from the onset? That&#x27;ll teach &#x27;em!

Amazing. Makes me glad I signed up with PayPal.<p>Near the end there so many people were cancelling that if you used a credit card they would, without your consent or interaction, start your service up again. <a href="https:&#x2F;&#x2F;www.mentalfloss.com&#x2F;article&#x2F;559352&#x2F;moviepass-reinstating-charging-cancelled-subscribers" rel="nofollow">https:&#x2F;&#x2F;www.mentalfloss.com&#x2F;article&#x2F;559352&#x2F;moviepass-reinsta...</a>

The government knows the executives at MoviePass committed theft, but we will not see any criminal charges filed.

&gt;“MoviePass and its executives went to great lengths to deny consumers access to the service they paid for while also failing to secure their personal information,”<p>As expected.

I signed up for Moviepass the month they came out.<p>Canceled the month they started to have blackouts.<p>Great deal, would do again if any VC wants to try again for the goodness of the movie industry.

It appears the MoviePass master plan for world domination was inspired by the underpants gnomes of South Park[a]:<p>Step 1. Charge customers $10&#x2F;month for unlimited passes to movie theaters<p>Step 2. Change passwords to prevent customers from getting their passes<p>Step 3. ???<p>--<p>[a] <a href="https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=tO5sxLapAts" rel="nofollow">https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=tO5sxLapAts</a>

I owe a debt of gratitude to MoviePass. Their shenanigans led me to learn about virtual credit cards (privacy.com in my case). I&#x27;ll never be surprise billed by a subscription service again.

Unpopular opinion, but MoviePass could have survived a lot longer if they had more funding. I think there could have been a real opportunity with establishing themselves the main funnel to getting consumers to physical theaters. They couldn&#x27;t hold on long enough to see what could be possible with such a moat.

The analogy with Netflix&#x27;s DVD-by-mail throttling is astonishing. Same fraud but &quot;done with computers&quot;.<p><a href="https:&#x2F;&#x2F;en.m.wikipedia.org&#x2F;wiki&#x2F;Criticism_of_Netflix" rel="nofollow">https:&#x2F;&#x2F;en.m.wikipedia.org&#x2F;wiki&#x2F;Criticism_of_Netflix</a>

Weird. I was using MoviePass right at the end and they didn’t need to change my password, they just limited what movie and time I could use my card so much it stopped being worth the trouble.<p>I guess they could have changed my password to keep me from canceling…

Classic tactic, similar to insurance companies who advertise great service but throw every caveat in the book at you when you actually file a claim, such that you can’t get to use, you know, what you actually paid for…<p>There has to be a term for this?

This is what the chargeback feature of credit cards is for.

Sounds like the FTC has drawn a hard line on dark patterns. Hopefully, they wake up to other deceitful, anti-consumer design patterns.

Yes PNC Bank also does this, I bet they have hacks that they don&#x27;t want to disclose and just want to smooth over the problem.

okay, but like ... don&#x27;t we sign away any right to care in the T&amp;C&#x2F;EULA of services? or like when you go to a baseball game, this ticket can be revoked at any time for any or no reason.<p>like, it&#x27;s their company and service, they can do what they want with their data. why is the FTC getting involved here?

For a subscription based business, that’s just extremely unethical

Couldn&#x27;t users just go through the reset password flow or did MoviePass disable that as well? Not saying this isn&#x27;t bad just trying to understand how far MoviePass went to stop users.

That&#x27;s amazing. Matt Levine covered it in his column today as well--haven&#x27;t had time to read it yet, but it&#x27;s probably good as usual <a href="https:&#x2F;&#x2F;www.bloomberg.com&#x2F;opinion&#x2F;articles&#x2F;2021-06-08&#x2F;moviepass-changed-some-passwords" rel="nofollow">https:&#x2F;&#x2F;www.bloomberg.com&#x2F;opinion&#x2F;articles&#x2F;2021-06-08&#x2F;moviep...</a>