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ARTICLE · 11 SEPTEMBER 2021

MoviePass Settles With The FTC Regarding Limitations On Subscribers' Usage

Perkins Coie LLP
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•Under the Restore Online Shoppers' Confidence Act (and state auto-renewal laws), advertisers must disclose material terms and conditions and obtain consumers' express consent before charging a payment card or account.

United StatesConsumer Protection
Mark S. Goodrich
Mark S. Goodrich
Amanda Beane
Amanda Beane

Key Takeaways:

  • Brands should honor advertised product benefits and avoid techniques to block product use.
  • Under the Restore Online Shoppers' Confidence Act (and state auto-renewal laws), advertisers must disclose material terms and conditions and obtain consumers' express consent before charging a payment card or account.

The FTC and MoviePass recently settled related to allegations that the company used deceptive tactics to prevent subscribers from using its service and insecurely held subscribers' private information. The FTC's complaint alleged that MoviePass used three tactics, described below, in a perceived attempt to save money on their $9.95 per month subscription service that was advertised as providing unlimited access to certain films in theaters.

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