- June 11, 2021
- Posted by: Stratford Team
- Category: Business
Moviegoers checked into a theater using a cellphone app and picked a movie and showtime. The cost of the ticket was loaded by MoviePass onto a prepaid debit card, which was used to pay for admission to the movie.
According to prosecutors, the business model changed to an “unlimited” subscription plan for $9.95 per month and an “unlimited” annual subscription price when Helios and Matheson Analytics bought MoviePass in 2017.
But over the next two years, the business model and terms of service changed at least a few times and allegedly affected customers negatively, prosecutors said.
Among the alleged unlawful, unfair, and fraudulent acts and practices by Farnsworth and Lowe was false advertising. The pair said the service offered “unlimited” movie-watching consisting of “any movie” on “any day” at “any theater.” But prosecutors allege MoviePass added limitations to subscriptions.
The pair also allegedly changed the terms of service during a…