Live data from Hacker News

MoviePass settles FTC allegations that they limited usage, exposed user data

ftc.gov

141–150 of 175 posts

Re: MoviePass settles FTC allegations that they limited usage, exposed user data

#141

Earlier quoted context omitted.

So if I were to own 1 share of $AMZN, I’d be criminally liable for anything the corporation does? Would I do 10 minutes in jail or something?

I used to argue for exactly this. The thing is that people would only invest in companies with executives they personally trust. Which may be a good thing overall, but would be a big problem in the short term. I definitely think board members and Top executives should be held criminally liable for the actions of the company. Unless they can prove it was a specific bad actor, and that their policies didn't encourage i…

> Unless they can prove it was a specific bad actor, and that their policies didn't encourage illegal behavior, and that they weren't negligent in discovering and stopping said behavior.

Asking someone to prove a negative is almost impossible. Asking them to disprove 3 is crazy. The prosecution should have the responsibility to demonstrate that the company had a systemic issue that was causing illegal behavior, either as a result of intentional pushes by someone with control, or as a result of wilful or reckless negligence.

How do you prove your policies don't encourage illegal behavior? The only way I can think of is to remove or invert the policy and demonstrate that illegal behavior is unchanged or potentially higher with the reversed policy. Which, incidentally, would be a violation of the law itself. Without an intent component, well-meaning policies that accidentally increase illegal behavior become illegal. Add driver tracking software to ensure people don't speed, but because of poor design the drivers fidget with it while driving? That's a violation. The counter-side is that adding intent makes it much harder to prosecute.

> and that they weren't negligent in discovering and stopping said behavior.

Again, how do you demonstrate that you weren't negligent? Hind-sight will almost always show that there was something you could have done to prevent an incident. Someone will have to create some kind of criteria for determining whether an action/inaction is negligent or not. It makes far more sense to have the prosecution demonstrate that you were negligent by failing to meet such and such criteria than for you to go on a rambling speech about what you did do, and then let the prosecution pick something arbitrary that you didn't do.

Just imagine that you're driving down a dark, unlit, windy country road. You come around a bend, there's a person crossing the road in all-black and you hit them. In court, you are then asked to demonstrate that you weren't negligent. Even if you were following the law, with the benefit of hindsight there are of course things you could have done. You could have driven slower; visibility was low. Maybe you shouldn't have been driving late at night; if you had just woken up, maybe a split-second in reaction time might have made a difference. Maybe if you had been scanning a little wider you would have seen them on the other side of the bend as you were coming up. Now you have to justify why you made each of those decisions, and any slip-up is a guilty sentence.

Other than that, I'm on board. I just don't like pushing the burden of proof onto the accused. It's an end-run around the 4th Amendment. It makes the right against self-incrimination pointless, because refusing to testify makes you guilty and lying is a crime.

It also significantly increases the power imbalance between prosecution and defense. It costs the government almost nothing to prosecute; they don't have to prove anything, so they don't need any investigators or evidence. All those costs are shifted on to the defendant, whose costs have just gone up an order of magnitude. The defendant used to need enough evidence to refute a single material point in the prosecution. If the prosecution says I was negligent because I failed to meet X requirement, I just need to prove I met that requirement or that it doesn't apply to me. If I have to prove I wasn't negligent, I now have to prove that I meet all the requirements. If I fail to pay for enough lawyers to prove each point, the prosecution can simply point to that one as the one I failed.

Re: MoviePass settles FTC allegations that they limited usage, exposed user data

#142
post #110

Earlier quoted context omitted.

Corporations are people!* * until a crime is committed

Everyone should get a corporation at birth, and all actions done by that individual should be done for that corporation. Maybe things would change then.

That doesn't work. https://en.wikipedia.org/wiki/Piercing_the_corporate_veil#Fa...

Re: MoviePass settles FTC allegations that they limited usage, exposed user data

#143
post #47

Earlier quoted context omitted.

I wonder if a general purpose legal framework of applying the same punishment to different types of entities is possible. That way most laws could be worded in a way that applies to private individuals and all types of companies the same way, but then the actual punishment would be applied differently. Specifically, when a company breaks the law, the legal framework would explain the way the responsibility should be…

I am frustrated that we continue to have the death penalty for individuals that commit heinous crimes, but we do not have the death penalty for corporations. I feel like when you manage to harm a billion people at a time, the penalty should be that your company is dissolved, it's assets auctioned off, and the trademarks and domains blackholed. And then, since I don't support the death penalty for individuals, the C-l…

I have some complicated feelings on this, because on the one hand it really makes sense to punish these people and companies and stop this behavior from continuing, and on the other it would suck to be some low level worker and have some bullshit from a CEO cause you to immediately lose your job, and it would also suck as a customer of some non-screwy service of the company to have something you rely on forced to stop.

Perhaps a complete replacement of all upper level management over 6 months and possibly a moratorium on board involvement for a time period for board members if it was bad enough would be sufficient? In the "a corporation is a person" analogy that's about the same as some other mind taking over the body, so that might be sufficient. You might have to have some laws that provide some bite for people that want to just jump ship immediately knowing there severance is in danger even if they stay, but it's not like what I'm proposing could happen without new legislation anyway.

As long as the payment of severance was handled by new management explicitly, and all replacements happened under explicit notice that the prior employee was being removed for compliance in an illegal activity (so they could fight against paying the severance), I think that would be a fairly good deterrence of bad behavior, since it would affect both employment of themselves and others, it has a good chance of affecting payouts when fired, and it effectively wipes the slate clean while doing what it can to preserve services and employment for as many as possible.

Re: MoviePass settles FTC allegations that they limited usage, exposed user data

#144

Earlier quoted context omitted.

That actually seems like a great idea. Not 10 minutes of jail time, but some form of liability. If orgs are incentivized to increase shareholder value, and those shareholders face no liability for wrongdoing done to increase their assets worth, then the incentives are out of whack. I don't know what kinds of liability makes sense, but some form seems like a great idea. If you own one share of amazon, and it gets some…

Make it actual jail time, and for the company itself. No monetary flow, no work being done, no contracts honored, restricted and slow (if any) access to assets, etc. Would it be traumatic? For sure. Potentially "life-ruining" for the company and the people close to it? Sure. Just like jail and prison are for regular people.

While in corporate jail, they can also be contracted to perform labor for less than a $1 an hour like human prisoners are in the US.

Re: MoviePass settles FTC allegations that they limited usage, exposed user data

#145
post #56
post #7

Earlier quoted context omitted.

So are criminal charges.

And the entire concept of ownership. It's actually quite unbelievable how there can be societies that do have the concept of a death sentence, but don't have the concept of a property nullification sentence. "You may live, but you have to start at zero and any obligation someone might have to you is nullified". The inverse of bankruptcy, basically.

That's cause this idea is completely immoral

Re: MoviePass settles FTC allegations that they limited usage, exposed user data

#146

Earlier quoted context omitted.

Sure, but any business can survive indefinitely if they're given unlimited funding with no expectation of returns. In your opinion, what's the point of being the main funnel to theaters if you're losing money hand over fist to do so? What was the plan for profitability? Was the goal to somehow strong arm movie theaters into discounted pricing? Why would theaters agree to that when there's no benefit for them to do so…

> The only way their business model can work is if the majority of customers sign up and never use it, which is a very weird thing for a business to depend on, IMO. This is basically how gyms are profitable.

Maybe, but a gym membership isn't trying to sell me somebody else's product for 1/3 the price, while paying the full price themself.

Re: MoviePass settles FTC allegations that they limited usage, exposed user data

#147

"Under the proposed settlement, MoviePass, Inc ...will be barred from misrepresenting their business and data security practices." Isn't this how things are supposed to be from the onset? That'll teach 'em!

Hey now, the government isn't messing around: > violation of such an order may result in a civil penalty of up to $43,792 Oh. I think it would actually be more punitive to literally slap them on the wrist.

And this here is the sad reason why these schemes will always happen.

It's simply more profitable for them to pay the negligible fines/fees.

I'd bet dollars to donuts this would change immediately if there were criminal liabilities involved.

But since corporations are rich people who face no repercussions and who can limitlessly lobby to craft laws bespoke to them, I don't see that happening any time soon.

Re: MoviePass settles FTC allegations that they limited usage, exposed user data

#148

Earlier quoted context omitted.

Sure, but any business can survive indefinitely if they're given unlimited funding with no expectation of returns. In your opinion, what's the point of being the main funnel to theaters if you're losing money hand over fist to do so? What was the plan for profitability? Was the goal to somehow strong arm movie theaters into discounted pricing? Why would theaters agree to that when there's no benefit for them to do so…

Gym membership. > no benefit Movie theater attendance has been dropping steadily. Theaters, especially today's multi-plexes, are vast wastelands of empty seats the majority of the time. There absolutely is a benefit to them selling more tickets at off-peak times, or to not-so-hot films, or just as an incentive to sell popcorn. Keep in mind all this extra volume would cost theaters ZERO in additional marketing expense…

> Gym membership. > Movie theater attendance has been dropping steadily. Theaters, especially today's multi-plexes, are vast wastelands of empty seats the majority of the time. There absolutely is a benefit to them selling more tickets at off-peak times, or to not-so-hot films, or just as an incentive to sell popcorn. Keep in mind all this extra volume would cost theaters ZERO in additional marketing expense.

But if theaters wanted to do that then they would lower prices themselves.

And for all we know, most people signing up for MoviePass were the same people who were still going to the movies anyways.

Re: MoviePass settles FTC allegations that they limited usage, exposed user data

#149
post #75

Earlier quoted context omitted.

Sure, but any business can survive indefinitely if they're given unlimited funding with no expectation of returns. In your opinion, what's the point of being the main funnel to theaters if you're losing money hand over fist to do so? What was the plan for profitability? Was the goal to somehow strong arm movie theaters into discounted pricing? Why would theaters agree to that when there's no benefit for them to do so…

> The only way their business model can work is if the majority of customers sign up and never use it, which is a very weird thing for a business to depend on, IMO. This is essentially the concept of insurance, is it not?

It's not the same at all.

Insurance protects people financially from unlikely and *undesirable* events they don't want to happen. Nobody in good faith wants to get in a car accident or have a medical emergency. Insurance "works" by assuming most people won't have to or want to use it.

MoviePass is doing exactly the opposite, though. They're selling a desirable product for much cheaper than normal while paying full price themselves and hoping people won't actually take advantage.

Re: MoviePass settles FTC allegations that they limited usage, exposed user data

#150
post #142

Earlier quoted context omitted.

Everyone should get a corporation at birth, and all actions done by that individual should be done for that corporation. Maybe things would change then.

That doesn't work. https://en.wikipedia.org/wiki/Piercing_the_corporate_veil#Fa...

So you would need to use your sibling's and/or friend's corp?
Post reply on HN