Reports by Consumers

Blockbuster settled a suit related to its "no late fees" advertisements.

Attorney General Eliot Spitzer today announced a multi-state agreement with one of the nation’s largest movie rental chains, settling allegations that it misled consumers in an advertising campaign.

Blockbuster, Inc. settled investigations commenced by 47 states and the District of Columbia and agreed to provide clear and conspicuous disclosures about its "No Late Fee" program and to issue refunds to thousands of consumers who have paid "re-stocking fees" or were charged the full cost of a video.

The Attorneys General alleged that the advertising campaign launched in late December 2004 was misleading because it failed to clearly disclose that, seven days after a movie or game’s return due date, the consumer would be charged its selling price if the item were not yet returned. Thereafter, if a consumer returned the rental, he/she would be credited for the selling price, but would be charged a "restocking fee" of $1.25 or more.

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Read more from this blogger: BLOCKBUSTER SETTLES INVESTIGATION INTO ADVERTISING FOR "NO LATE FEE" PROGRAM