568:
violation of the same acts, by listing the software in Add/Remove
Programs although the software cannot be uninstalled, unconscionable business practices in violation of the CPA, by the "aggressive and harassing" billing method used and the failure to disclose it, including use of a billing method "that forces payment by completely obstructing users' access to their computers", threats, harassment and intimidation in billing practices in violation of the CPA, by threatening collection proceedings and an adverse effect on users' credit records, while in fact defendants do not even know the consumer's name; and referring to consumers' "legal obligation" to pay, when in fact there is no legally binding contract, failure to disclose material facts in violation of the CPA, the "aggressive, relentless, threatening" form of the payment demands; the fact that the uninstallation option for the software will be disabled; and that the defendants "transmit software to the user's computer surreptitiously", and misrepresentations in violation of the CPA, including stating the software contains "no spyware" when in fact the software itself constitutes spyware by its behavior.
34:
276:
265:
456:
software without the user's explicit consent and without disclosing clearly and prominently in the site's terms of service the nature, frequency, and duration of any pop-up windows that may appear regarding any purported obligation for payment. The pop-ups also must not lock out access to the rest of the computer.
567:
The alleged violations of
Washington state law included taking control of a user's computer in violation of the Spyware Act and the Consumer Protection Act (CPA), by remotely installing billing software that initiates and controls the pop-up cycle, misrepresenting the ability to uninstall software in
477:
unless the owner has provided personal identification such as a credit card and agreed to pay. Customer service agents may state that they "believe" the computer owner is responsible for paying for the download, and offer several purchase options including a one-time 30-day non-renewing license for $
341:
Clicking "Continue" brought up the next pop-up, a 40-second audiovisual clip featuring a woman who introduced herself as "your personal customer service representative" and stated "Because you did not cancel during your trial period, you are now legally obligated to make your payment as per the terms
238:
calls
Movieland's MediaPipe component "badware" because "it does not fully disclose what it is installing, does not completely remove all components and 'obligations' during the uninstall process, and modifies other software without disclosure." Richard Stiennon of IT-Harvest referred to Movieland as
501:
including limiting the number, frequency and duration of the billing pop-ups; and to pay the FTC $ 501,367 to reimburse consumers who paid for the program as a result of the repeated pop-up demands. The defendants also agreed to stop offering anonymous free trials, have users certify at install time
332:
concealing
Defendants' true purpose: to install software and other files onto consumers' computers that enable Defendants to launch pop-up windows on consumers computers demanding payments to Defendants. These pop-up windows, which display both textual and audiovisual payment demands, significantly
222:
Movieland.com began operations sometime in the fall of 2005 or earlier. Consumer complaints began soon thereafter. Most consumers claimed they had never signed up for the free trial, never used the service, and never even heard of
Movieland until they got their first pop-up demand for payment. Some
575:
rejected one possible defense. "The defendants' claim that users are legally obligated to pay for their service lacks merit because consumers did not provide knowing consent to the installation of the relentless pop-up demands", he said. "Furthermore, computer owners are not responsible to satisfy
337:
The pop-ups had a large dark background and took up much of the screen, blocking access to other windows, and did not contain close or minimize buttons; forcing the user to continue. The first pop-up showed the date and time "our content access software was installed on your system and your 3 day
320:
The complaint alleged that the defendants were demanding payment to fix a problem that they themselves created, and were installing disruptive software that could not be removed through reasonable means. According to the FTC complaint, Movieland repeatedly bombarded consumers with pop-up windows,
579:
Assistant
Attorney General Paula Selis said the tactics forced some consumers to give in and pay between $ 20 and $ 100 for the service. She said, "We sued them because we were getting complaints from consumers who felt that they were being harassed and held over a barrel for payments that they
588:
Movieland settled with
Washington in April 2007 under terms similar to the FTC settlement but specific to Washington consumers, agreeing to pay Washington $ 50,000 as consumer reimbursement and to prominently state all important contract terms, including the cost of the subscription service, in
455:
governing their pre-trial conduct. Without admitting any wrongdoing, violation of the law, or involvement in the acts and practices alleged in the complaint, the defendants agreed to make clear and prominent disclosures prior to any software download or installation, to not download or install
349:
In addition, the complaint alleged that the defendants made numerous false statements in attempting to collect payments from consumers, claiming that the computer owner or someone else consented to receiving the pop-up payment demands until they paid, the owner of any computer that received the
152:
and demands for payment, triggered after a free 3-day trial period. Many said they had never even heard of
Movieland until they saw their first pop-up. Movieland advertised that the service had "no spyware", and that no personal information would need to be filled out to begin the free trial.
392:
Movieland said the pop-ups were "an anti-fraud mechanism" that cannot be received without consumers intentionally downloading the software through several intentional steps, each of which has a default setting of "cancel". The company also stated "there are no extrinsic programs (adware or
281:
The expired trial and payment options screens as presented by the
Moviepass software, as illustrated in the FTC's complaint. These pop-up windows blanked the entire screen and forced the user into continuing the process of purchasing the service, with no visible method of closing
576:
contracts that other people, including minors, entered into while using a computer." He also said that the defendants' threats of collection proceedings and adverse effects on users' credit ratings were empty, as the defendants had no way to personally identify computer users.
365:"Add or Remove Programs" function were redirected to a web page telling them that they had to pay the $ 29.95 fee to stop the pop-ups. The only way many consumers could regain control of their computers was to pay the fee, or pay a computer technician to remove the software.
321:
accompanied by music that lasted nearly a minute. They demanded a minimum payment of $ 29.95 to end the recurring pop-up cycle, claiming that consumers had signed up for a three-day free trial and did not cancel the service before the trial period was over.
459:
They also agreed to fixed limits on how many pop-ups they can generate on a computer (maximum of 5 per day, 1 per hour), the requirement to provide a mute button for any sound content in the pop-ups and be able to close the windows, and provide a
468:
They are also required to not represent that consumers have any "legal" or "contractual" obligation to pay for the software unless the computer owner has provided personal identification and agreed to pay, and that failure to pay will result in
388:
at the
Movieland web site warned that if users did not cancel or pay during the three-day period, pop-up billing reminders would begin and "will appear more frequently until you choose one of the payment options and pay for the license."
350:
pop-ups was legally obligated to pay Movieland, and that the computer owner was obligated to satisfy any contract that any other person entered into while using the computer. The only customer service telephone number provided was a
464:
with toll-free number and email utility, to request stopping the pop-ups under certain conditions. The defendants also promised to clearly label any single-click download or install buttons, and not pre-select these as the default.
338:
free trial began", the text "Click 'Continue' to purchase your license and stop these reminders", and a graphic reading "STOP THESE REMINDERS NOW" and "CLICK CONTINUE". The only option offered was the button labeled "Continue".
333:
disrupt consumers' use of their computers. After Defendants cause these pop-up payment demands to display on a particular computer for the first time, they cause them to redisplay again and again with ever-increasing frequency."
580:
didn't agree to make." Selis said, "It was harassment, it was intimidation of the consumer. It was using a high-pressure tactic to make him or her pay for something they were not legally obligated to pay."
393:
otherwise) bundled with our software." The company disputed the FTC claim that the software was "very difficult to get rid of", and said it could be removed using the Windows Control Panel.
1140:
544:, alleged misrepresentations and unlawful business acts and practices similar to those alleged in the FTC complaint, and further alleged violations of Washington state law.
214:. The site's homepage stated that it has "No Spyware", is "Virus Free", and "No Extra Charge". The site installed a program, MediaPipe, which was used to access the service.
223:
said they found the software on their computers after downloading a screensaver or other free utility. The company denied that it installed its software by stealthy means.
1035:
377:". They said the FTC lawsuit was "improperly brought", and pointed out that at the time the complaint was filed a federal judge rejected the FTC's request for a temporary
513:
The agreement also requires Herd and Garroni to notify the FTC of any change of name, address or employment status, and of any new business affiliations, for five years.
497:
Movieland settled with the FTC in September 2007. Without admitting any wrongdoing or violation of the law, the defendants agreed to make permanent the terms of the
942:
1036:"Complaint for Injunctive and Additional Relief Under the Unfair Business Practices--Consumer Protection Act and the Computer Spyware Act (PDF, 21 pages)"
180:
also filed a complaint, charging Movieland and several other defendants with violating that state's Computer Spyware Act and its Consumer Protection Act.
202:
Movieland advertised its movie download service by using pop-up ads at other sites. The ads offered a three-day free trial, with access to members-only
1189:
772:
244:
231:
230:
companies were buying Google advertisements boasting their product's ability to "Remove Movieland Now". In a report updated February 20, 2008, the
1147:
354:. When consumers called it, a recorded greeting told them that they would incur a $ 34.95 charge if they did not hang up within three seconds.
623:
510:, not download software that reinstalls itself after a user has removed it, and to prominently post removal instructions at their web sites.
194:
in January 2023, with the original embed page and parameters, but without some files (some missing files are saved in the older link above).
533:
charged Movieland, Digital Enterprises, Herd, and Garroni with violating the state's Computer Spyware Act and its Consumer Protection Act.
736:
210:. The ads said there were no forms to fill out, and no need to provide a credit card number or an e-mail address, making the trial appear
346:
entitled "PAYMENT OPTIONS" appeared. Choosing its "Close this window" option ended the pop-ups until the unvarying cycle began again.
1042:
1179:
1001:
373:
Movieland representatives said the downloads were not spyware and did not get on computers accidentally, insisting they were not "
164:
against Movieland and eleven other defendants in August 2006, charging them with having "engaged in a nationwide scheme to use
38:
Movieland home page, showing various categories of content. A sidebar claims "No Spyware", "Virus Free", and "No Extra Charge"
794:
342:
and conditions you agreed to when you installed our content delivery software." As the clip neared its conclusion, a new
487:
551:
of up to $ 100,000 per violation of the Spyware Act and $ 2,000 per violation of the Consumer Protection Act if found
861:
537:
507:
289:
On August 8, 2006, the FTC filed a complaint in United States District Court "to obtain preliminary and permanent
294:
825:
977:
921:
893:
868:
708:
676:
157:
134:
971:"Settlement Agreement and Stipulated Final Order for Permanent Injunction and Monetary Relief (PDF, 30 pages)"
970:
133:, was a subscription-based movie download service that has been the subject of thousands of complaints to the
1093:
530:
491:
362:
177:
138:
526:
173:
145:
141:
1120:"Attorney General McKenna Settles with Movieland.com and Associates Concerning Pop-Up Payment Demands"
240:
20:
1006:
669:
633:
598:
302:
248:
235:
226:
Media coverage as early as January 2006 recounted consumer complaints and mentioned that several
357:
The complaint also alleged that the defendants made it difficult or impossible for consumers to
744:
401:
The following ten companies and two individuals were named as defendants in the FTC complaint:
33:
470:
452:
374:
1184:
740:
503:
385:
306:
768:
571:
In announcing the suit following a seven-month investigation, Washington Attorney General
552:
191:
442:
Andrew Garroni, an officer or director of Pacificon, Alchemy, Film Web, and Binary Source
184:
1011:
548:
474:
275:
264:
1173:
149:
243:" due to its behaviour. As of July 2008, the MediaPipe report is still cited by the
1119:
1098:
439:
Easton Herd, sole officer and director of Digital Enterprises and Triumphant Videos
329:
227:
207:
49:
1071:
1041:. Washington State Office of the Attorney General. August 14, 2006. Archived from
890:"Court Enters Stipulated Interim Agreements and Orders in Matter of Movieland.com"
148:, and other agencies by consumers who said they were held hostage by its repeated
1146:. Washington State Office of the Attorney General. April 19, 2007. Archived from
917:
798:
704:
572:
556:
522:
298:
203:
670:"Complaint for Permanent Injunction and Other Equitable Relief (PDF, 25 pages)"
889:
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that they are at least 18 years of age, provide an install-time link to their
378:
351:
343:
290:
628:
461:
358:
310:
211:
165:
161:
943:"Show's over for Movieland; download service settles with FTC over adware"
829:
705:"FTC, Washington Attorney General Sue to Halt Unfair Movieland Downloads"
169:
1072:"Attorney General McKenna Sues Movieland.com and Associates for Spyware"
541:
314:
833:
1074:. Washington State Office of the Attorney General. August 14, 2006
406:
1122:. Washington State Office of the Attorney General. April 19, 2007
317:
acts or practices in violation of Section 5(a) of the FTC Act".
381:
that would have immediately ended the cited billing practices.
490:
in January 2008, but before trial, the defendants chose to
737:"MovieLand Denies It Pipes Spyware Onto Users' Computers"
478:
29.95, after which access to the service will terminate.
328:
Installation of Defendants' download manager is merely a
862:"Stipulated Interim Agreement and Order (PDF, 14 pages)"
361:
the software. Those attempting to remove it through the
77:
996:
994:
451:
In November 2006, the defendants and the FTC signed
108:
100:
92:
84:
72:
64:
56:
43:
206:including music, news, updated sports scores and
1066:
1064:
1062:
699:
697:
695:
693:
16:Former subscription-based movie download service
795:"FTC, AG Blame 'Extortionware' For Pop-Up Hell"
486:The FTC complaint was scheduled to be tried in
326:
1094:"Movie download service faces spyware lawsuit"
1030:
1028:
912:
910:
664:
662:
660:
658:
656:
654:
652:
650:
601:, a similar business that operated in the UK.
8:
965:
963:
26:
918:""Movieland" Defendants Settle FTC Charges"
617:
615:
498:
415:Pacificon International, Inc. d/b/a Vitalix
1002:"Movie Download Service Sued Over Spyware"
856:
854:
852:
850:
826:"Lawsuit holds a lesson about downloading"
190:Another version of the popup was found on
25:
773:Berkman Center for Internet & Society
763:
761:
731:
729:
727:
725:
412:Triumphant Videos, Inc. d/b/a Popcorn.net
245:Berkman Center for Internet & Society
232:Berkman Center for Internet & Society
172:to extract payments from consumers." The
819:
817:
815:
611:
433:Mediacaster, Inc. d/b/a Mediacaster.net
430:Binary Source, Inc. d/b/a Moviepass.tv
517:Complaints by the state of Washington
183:The files of the popup were found on
7:
599:Micro Bill Systems and Platte Media
555:. They were also subject to paying
824:Weisbaum, Herb (August 17, 2006).
743:. January 22, 2006. Archived from
14:
1010:. August 15, 2006. Archived from
793:Keizer, Gregg (August 16, 2006).
632:. August 14, 2006. Archived from
624:"Movie service sued over spyware"
1190:Defunct video on demand services
1141:"Stipulated Agreement and Order"
1092:Leyden, John (August 16, 2006).
274:
263:
32:
547:The defendants were subject to
473:or affect the computer owner's
142:State Attorney General's Office
1:
52:-based movie download service
488:United States District Court
418:Alchemy Communications, Inc.
324:The complaint charged that:
1206:
538:King County Superior Court
508:end user license agreement
421:AccessMedia Networks, Inc.
405:Digital Enterprises, Inc.
18:
797:. TechWeb. Archived from
563:Alleged violations of law
424:Innovative Networks, Inc.
218:Early consumer complaints
68:Digital Enterprises, Inc.
31:
1180:Federal Trade Commission
978:Federal Trade Commission
922:Federal Trade Commission
894:Federal Trade Commission
869:Federal Trade Commission
709:Federal Trade Commission
677:Federal Trade Commission
536:The complaint, filed in
368:
158:Federal Trade Commission
135:Federal Trade Commission
19:For the wax museum, see
559:to affected consumers.
499:pre-trial stipulations
471:collection proceedings
447:Pre-trial stipulations
335:
146:Better Business Bureau
363:Windows Control Panel
255:Complaints by the FTC
980:. September 13, 2007
924:. September 13, 2007
521:On August 14, 2006,
369:Movieland's position
21:Movieland Wax Museum
775:. February 20, 2008
494:with both the FTC.
492:settle out of court
109:Current status
28:
947:www.scmagazine.com
896:. January 12, 2007
871:. November 7, 2006
621:McMillan, Robert.
375:drive-by downloads
249:Harvard Law School
236:Harvard Law School
711:. August 15, 2006
379:restraining order
291:injunctive relief
187:in August 2022.
116:
115:
57:Available in
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836:on March 5, 2016
832:. Archived from
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741:Consumer Affairs
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687:
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679:. August 8, 2006
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645:
644:
642:
641:
619:
589:advertisements.
529:of the state of
527:Attorney General
504:terms of service
436:CS Hotline, Inc.
386:terms of service
309:for Defendants'
307:equitable relief
278:
267:
176:of the state of
174:Attorney General
121:, also known as
80:
36:
29:
1205:
1204:
1200:
1199:
1198:
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1153:on July 3, 2009
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1104:
1102:
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1051:
1049:
1048:on July 3, 2009
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636:on May 15, 2008
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371:
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192:Wayback Machine
185:Wayback Machine
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482:FTC settlement
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428:
427:Film Web, Inc.
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297:of contracts,
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160:(FTC) filed a
150:pop-up windows
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1073:
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1065:
1063:
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1029:
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1014:on 2007-02-23
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801:on 2011-06-12
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747:on 2007-01-04
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475:credit status
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409:Movieland.com
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78:Movieland.com
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35:
30:
22:
1167:
1155:. Retrieved
1148:the original
1135:
1124:. Retrieved
1114:
1103:. Retrieved
1099:The Register
1097:
1087:
1076:. Retrieved
1050:. Retrieved
1043:the original
1016:. Retrieved
1012:the original
1005:
982:. Retrieved
951:. Retrieved
949:. 2007-09-14
946:
937:
926:. Retrieved
898:. Retrieved
884:
873:. Retrieved
838:. Retrieved
834:the original
803:. Retrieved
799:the original
788:
777:. Retrieved
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745:the original
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638:. Retrieved
634:the original
627:
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458:
453:stipulations
450:
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356:
348:
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336:
330:smoke screen
327:
323:
319:
303:disgorgement
288:
228:anti-spyware
225:
221:
208:adult movies
201:
189:
182:
155:
130:
127:Moviepass.tv
126:
122:
118:
117:
93:Registration
50:Subscription
45:Type of site
769:"MediaPipe"
573:Rob McKenna
557:restitution
523:Rob McKenna
299:restitution
239:a form of "
131:Popcorn.net
1174:Categories
1157:2008-10-16
1126:2008-10-16
1105:2007-01-15
1078:2007-01-15
1052:2007-01-15
1018:2007-01-15
984:2008-10-16
953:2022-07-21
928:2007-01-15
900:2007-01-15
875:2008-10-16
840:2007-01-15
805:2008-10-16
779:2008-10-16
751:2007-01-15
715:2006-12-29
683:2006-12-29
640:2007-12-14
606:References
584:Settlement
531:Washington
397:Defendants
352:900 number
344:dialog box
305:and other
295:rescission
241:Ransomware
178:Washington
139:Washington
85:Commercial
629:InfoWorld
462:hyperlink
359:uninstall
311:deceptive
212:anonymous
166:deception
162:complaint
119:Movieland
27:Movieland
1007:PC World
830:NBC News
593:See also
198:Overview
170:coercion
101:Launched
96:Required
1185:Spyware
542:Seattle
204:content
112:Offline
60:English
553:liable
525:, the
315:unfair
144:, the
137:, the
1151:(PDF)
1144:(PDF)
1046:(PDF)
1039:(PDF)
974:(PDF)
865:(PDF)
673:(PDF)
549:fines
407:d/b/a
282:them.
65:Owner
384:The
313:and
168:and
156:The
129:and
104:2005
540:in
506:or
247:at
234:at
88:Yes
73:URL
1176::
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