Primary Discussion Response is due by Thursday (11:59:59pm Central), Peer Responses are due by Saturday (11:59:59pm Central).

Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Digital marketing allows companies to connect with customers and create promotions in real-time. With a direct connection comes ethical and legal issues that are important for companies to understand. Creating guidelines and understanding the legal parameters of utilizing digital interaction is critical to a good marketing program.

MoviePass (FTC Case: 192 3000)
Between 2011 and 2017, MoviePass offered a variety of subscription plans at different price points. MoviePass subscriptions were sold with a negative option where consumers continued to pay a monthly fee for the service unless they canceled their subscriptions. In August 2017, MoviePass offered consumers “unlimited” movie viewings at theaters for $9.95 per month, again sold as a negative option. The services were offered as “Unlimited movies for only $9.95/month” providing access to “ANY MOVIE ANY THEATER ANY DAY,” including “ALL MAJOR MOVIES” in “ALL MAJOR THEATERS” and allowed consumers to “enjoy a new movie every day.” The following marketing materials were used to attract customers: [Image]

MoviePass attracted approximately 3.2 million subscribers by early 2018. By this time, however, MoviePass was already incurring financial losses due to the cost of the movie tickets subscribers acquired through the service. MoviePass devised and implemented “password disruption: and “ticket verification” programs in tandem to limit frequent MoviePass users’ ability to view movies through the service as advertised. Password disruption invalidated the passwords of the 75,000 subscribers who used the service most frequently, while claiming that “we have detected suspicious activity or potential fraud” on the affected subscribers’ accounts. One MoviePass executive advised that it “could insinuate there may have been a data breach” and another to advise that “it will go on and suspicions will arise, ‘were they hacked? Is our data really safe?” The password disruption program impeded subscribers’ ability to view movies because MoviePass’s password reset process often failed.

When subscribers attempted to contact MoviePass’s customer service about their inability to reset their MoviePass passwords, MoviePass often responded weeks later or not at all. As a result of password reset failures and related poor customer service, subscribers who were required to reset their passwords were often unable to do so.

Using what you have learned, answer the following questions:

• What are the ethical and legal issues involved with MoviePass and their interactions with customers?
• In your opinion, how should MoviePass have acted to be more ethical?
• How would you feel if you were a customer of MoviePass?