Tue 29 Mar 2005
RUKMINI CALLIMACHI, The Associated Press, reports:
PORTLAND, Ore. (AP) — Blockbuster Inc. has agreed to pay about $630,000 to settle claims by Michigan, 46 other states and the District of Columbia that the movie rental chain deceived consumers with its “No Late Fees” campaign.
The agreement, disclosed Tuesday, also requires Dallas-based Blockbuster to make refunds to consumers who claim the campaign misled them into thinking they could keep the video or DVD for as long as they liked.
Many consumers were angry to discover that overdue game and film rentals were automatically converted to a sale on the eighth day after the due date. If they then tried to return it, they were charged a $1.25 restocking fee.
According to the agreement, Blockbuster will have to refund consumers who were either charged the restocking fee or who paid the full price of the movie they rented.
As part of the settlement, Blockbuster will also have to change the way it advertises its no late fees policy, according to Michigan Attorney General Mike Cox.