MoviePass Operators Settle Data Security Allegations

The operators of subscription service MoviePass have agreed to settle Federal Trade Commission allegations of fraud and data security failures. 

It is alleged that MoviePass used an elaborate three-prong approach to prevent and discourage subscribers from using its $9.95 "one movie a day" monthly subscription service as advertised.

First, according to the FTC complaint, the company blocked as many as 75,000 subscribers from accessing content by purposefully invalidating their passwords. 

The FTC said: "MoviePass’s operators invalidated subscriber passwords while falsely claiming to have detected 'suspicious activity or potential fraud' on the accounts. MoviePass's operators did this even though some of its own executives raised questions about the scheme."

Their next alleged tactic was to create a time-sensitive ticket verification program that discouraged thousands of subscribers from using the service. 

"This program required subscribers to take and submit pictures of their physical movie ticket stubs for approval through the MoviePass app within a certain timeframe," said the FTC.

"Subscribers who failed to submit their tickets could not view future movies and could have their subscriptions canceled if they failed to verify their tickets more than once."

Finally, MoviePass’s operators allegedly set “trip wires” to block set groups of subscribers from using the service after they collectively hit certain thresholds based on their monthly cost to the company. The FTC alleges that this tactic was used against subscribers who typically watched three or more movies per month.

The operators of th ..

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