Blockbuster Ordered to Give Refunds

By Ian Bell March 30, 2005

Several months ago Blockbuster launched a new campaign announcing there would no longer be late fees for movies and games rented at their stores. The company only asked that you returned the movies within 7 days of its due-date. So you could theoretically have the movie for up to 14 days. The catch was that if you did not return the movie within those 14 days, Blockbuster would charge you the full amount of the movie in addition to a “restocking” fee.

Customers have been complaining about the new plan due to the movie charges and restocking fee. Even the New Jersey Attorney General has stepped in to take care of things.

“The problem, according to the New Jersey Attorney General, was that while Blockbuster emphasized the no late fees part of the policy in their advertising, they failed to adequately warn consumers about what happens once the grace period is over. In an agreement reached with 47 states plus Washington DC, the company has agreed to fork out US$630,000 to settle claims of deceptive advertising. That means customers who claim to have been misled (or didn’t read the fine print) will be given refunds for movies inadvertently purchased and restocking fees.”

Read more at Arstechnica

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