This is not how you enforce the law

This article, “MoviePass Changed Some Passwords” by Matt Levine, explains why there seems to be so relatively many American companies that defraud private customers. It’s the final (?) story of MoviePass, a company that was built on the venerable principle of the dot com bubble of spending more money than they earned, hoping they would get someone else to foot the bill later.

Except that didn’t happen and running out of money, MoviePass found a way to be profitable:

What if MoviePass collected your $10 each month and then, when you asked it for movie tickets, it ignored you? Then it could keep collecting your $10 a month without spending money on tickets. Eventually you’d get annoyed by not getting what you paid for, and you’d try to cancel your membership and get your money back, but MoviePass could ignore that too and keep collecting the $10. Giving people unlimited movie tickets for $10 a month is a good way to get rapid customer growth; telling people you’ll give them unlimited movie tickets for $10 a month, but not actually doing it, is a way to pivot to profitability.

When I describe it like that it sounds bad, but it was actually much worse! The way MoviePass ignored its customers was by changing their passwords so they couldn’t log into their accounts.
— Matt Levine, “MoviePass Changed Some Passwords

If you read the article you’ll find that this was not something that happened at the spur of the moment. No, it was discussed at formal meetings in the company between the CEO and other executives.

The punishment? MoviePass, already shut down, its parent company, already in bankruptcy, and their two CEOs, had to promise not to do it again.

 

 

 

 

 

 

 

 

 

 

 

 

 

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