February 19, 2005
New Jersey Sues Blockbuster Over Late Fees
New Jersey Attorney General Peter Harvey has sued Blockbuster for deceptive advertising over its "No Late Fees" campaign. He takes issue over the fact the company doesn't inform customers that in the no late fee program, there actually ARE late fees. After one week, the customer is charged a $1.25 restocking fee and then if the item is 30 days overdue, Blockbuster goes ahead an charges the item on the customer's credit card. Never mind the fact that certain Blockbuster stores can opt out of the program at its own discretion."Blockbuster boldly announced its 'No More Late Fees' policy, but has not told customers about the big fees they are charged if they keep videos or games for more than a week after they are due," the attorney general said in a statement.
