MoviePass emails former subscribers and enrolls them in new plan unless they opt out

Hollis Johnson/Business Insider

• On Friday, MoviePass sent out an email to subscribers, some of whom claim they had already cancelled their subscription or let it lapse, offering them a one-movie-per-day “test group” plan for $9.95 to get them using the service again.
• However, the email states that unless you opt out, your membership will be automatically restored and you’ll be charged $9.95 on a monthly basis beginning October 5.
• Many former MoviePass users who canceled or never renewed their monthly membership are upset after learning the company planned to re-enroll them without their consent.
• Joan Martínez Evora, Lecturer in Business Law at University of Miami Business School, described the MoviePass email to Business Insider as “unfair and abusive,” and Andrew C. Wicks, Ruffin Professor of Business Administration at the University of Virginia’s Darden School of Business, saw the email as “inappropriate and potentially bordering on bullying the customer.”

MoviePass is taking desperate measures to try to beef up its subscription numbers. 

On Friday, the movie-ticket subscription service sent out an email to members whose MoviePass subscription had lapsed or been canceled. The email informed them that, beginning October 5, they would be enrolled in a “select test group” of subscribers who could watch one movie per day, based on its limited “existing inventory,” for the current monthly price of $9.95.

However, MoviePass states in the email that if you do not opt out of this test plan, your subscription will be restored and your credit card on file will be charged $9.95 on a monthly basis beginning October 5.

The email, sent with the not-so-urgent subject line “MoviePass Updates,” was flagged to Business Insider on Friday by a subscriber who claimed they canceled their subscription but still received the email. The person said they have completed the opt-out prompt in the email and hopes they have now fully cut ties with MoviePass.

The complete letter is below:

Business Insider

The news quickly spread on social media over the weekend, with many former MoviePass users clearly baffled about why they have to opt out of a service that they didn’t renew when their subscription was up or outright canceled:

MoviePass’ terms of use states: “To cancel, you must notify MoviePass in writing via email at least one business day prior to the next billing date stating your intent to cancel and providing the full name and email address on the account. You may also cancel your membership by using the MoviePass app. Cancellations are not effective until confirmation is sent to you via email, and you are responsible for all charges until cancellation is confirmed.”

Though there have been stories recently detailing the difficulties of unsubscribing from MoviePass, this is the most egregious yet, according to experts.

“Signing up consumers without their permission is unfair and abusive,” Joan Martínez Evora, Lecturer in Business Law at University of Miami Business School, told Business Insider. “Placing technological barriers like hiding icons from the screen, or showing errors, or automatically re-enrolling without giving fair notices with reasonable choices, are unacceptable and the resulting ‘agreements’ unenforceable.”

Andrew C. Wicks, Ruffin Professor of Business Administration at the University of Virginia’s Darden School of Business, saw the email as “inappropriate and potentially bordering on bullying the customer.” 

“How many times do I have to say no before you hear no?” Wicks said to Business Insider.

MoviePass sent Business Insider the following statement regarding the Friday email blast:

“MoviePass sent an email offer on September 28, 2018 to a set of members who had not yet opted-in to the new offering of three films per month. The offer was the opportunity to restore their original unlimited plan (up to one new movie title per day based on existing inventory) – the subscription plan they had originally signed up for. This was a one-time promotional offer that is valid through October 5 for some subscribers, many of whom have expressed an interest in the original plan and a request for its return. As part of the offer, if the member does not wish to return to the original plan, they can simply opt-out in the email prior to October 5 and they will not be auto-charged.  
 
“There are a number of members who received the email from whom we have previously received conflicting indications over the last several months – having initially opted-out and then opting back in as we tweaked the offering. We had left their accounts suspended in an abundance of caution and are now offering them the opportunity to return to the plan that they originally liked.”

MoviePass did not respond to Business Insider’s inquiry as to why people who canceled the service are saying they still received the email.