Blockbuster stops 'No Late Fee' promotions

Blockbuster Video’s four-month-old “No Late Fee” ad campaign has been shelved after attorneys general in Missouri and 46 other states reached a $630,000 settlement with the rental chain over what was called a “misleading promotional campaign.”
Missouri Attorney General Jay Nixon said in a news release that Blockbuster’s late fees were replaced by other fees with different names. Customers who returned videos or other items after a week actually had to buy the items, and if they were then returned to the store, pay a “restocking” fee instead, he said.
Also, some franchise stores chose not to participate in the offer, which confused customers, who see the ads, rent items from those stores and get charged late fees.
“Blockbuster’s ads and window signs with huge letters gave customers the unmistakable impression that they no longer have to pay anything for late rental returns, but the late fees were simply replaced by other fees with a different name,” Nixon said. “Customers will now understand the real terms of this offer. It’s a reminder that advertisers can’t use a catchy slogan if it’s misleading – that may violate the law.”
The settlement covers 47 states – including Missouri, where there are more than 100 Blockbuster stores – and the District of Columbia.
Under the terms of the settlement, Blockbuster has agreed to:
• Clearly display the fees that do apply near any display promoting the “No Late Fee” promotion;
• Remove the signs from store windows announcing the “No Late Fee” program;
• Advise customers that some stores don’t participate in the program;
• Give a one-time refund to customers who were misled and had to buy videos or pay a restocking fee;
• Pay $12,500 to the Missouri Office of the Attorney General to cover legal expenses for consumer protection cases such as this case. Other states will be compensated similarly.
Missourians who believe they were misled and are entitled to a refund of a late fee should go directly to the Blockbuster store where they did business. They also can visit the Blockbuster Web site at www.blockbuster.com. The refund period is for rentals between Jan. 1 and March 28; refund requests should be made by April 28.