March 30, 2005
Blockbuster Settles "No Late Fees" Claims
Ooow what a difference. Blockbuster Video! The company has settled with 47 states for $630,000 and will also refund restocking fees for any customer who felt he or she was misled by the "No Late Fees" ad campaign. Blockbuster instead of charging late fees charged the whole movie and a restocking fee on your credit card if you were a week late. And oh my goodness, the States are actually forcing Blockbuster to clearly disclaim there ARE fees if you're late returning your video in their "No Late Fees" ad campaign. Tricky tricky corporate marketing didn't get away with it this time.Blockbuster agreed that in future advertising, among other steps, it will not represent directly or by implication that there are no late fees or only limited late fees unless such representation is accompanied by clear disclosure of any charges. In addition, the movie renter would advise of any limitation on the stores participating in the offer; clearly display its rental return policy and applicable charges if products are not returned.
