Consumer Alert – August 23, 2006

Joe Doyle, administrator of The Governor’s Office of Consumer Affairs (OCA), is advising consumers to be aware of practices by California companies that promote movie downloads over the Internet.

The Federal Trade Commission and the Attorney General of the State of Washington have recently filed lawsuits.

According to the FTC, the defendants downloaded software that captured consumers’ computers with pop-ups, accompanied by music that lasted nearly a minute, and could not be closed or minimized.

These pop-ups demanded that consumers pay the defendants $29.95 to end the recurring pop-up cycle, claiming that consumers had signed up for a three-day “free trial” of the defendants’ download services and did not cancel their “membership” before the trial period was over.

Hundreds of consumers complained to the FTC. Most claimed they had never signed up for the “free trial,” never used the firm’s services, and never even heard of the firm until they got their first demand for payment.

Web sites include movieland.com. moviepass.tv, and popcorn.net.

“Consumers should be extremely vigilant online because groups of unscrupulous individuals are seeking to commit fraud on any one of us who fall into their trap,” said Doyle.

A wealth of useful information about protecting yourself online is available from OCA, the FTC and your Internet service provider. For further information, please contact Bill Cloud at 404-656-3790, online at www.consumer.georgia.gov and www.ftc.gov/.

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