As Saving Advice reported at the end of last year,
Blockbuster ended late fees - with a catch. That catch being that if people didn't return their rentals in a timely manner, they had to actually buy the rental. That catch has now come back to haunt Blockbuster as it has agreed to pay some $630,000 to settle claims by 47 states and the District of Columbia that their "No Late Fees" campaign deceived consumers.
Under the No Late Fees campaign, the movie was automatically sold to any member who did not bring the rented movie back within on week after the rental was due. This came as a surprise to many consumers and many considered the $1.25 restocking fee if they tried to return the rental as a defacto late fee.
The settlement requires Blockbuster to refund money to consumers who claim the campaign misled them into believing they could keep their rented videos or DVDs for as long as they wanted without any fees being incurred. For those that make this claim, Blockbuster will give a refund or credit to both consumers who paid the restocking fee or the full price of the video or DVD they rented.
While it will help those who incurred fees to this point, Blockbuster is not going to end the campaign. Instead, they will make alterations to the way it's advertised by adding signs and other information in its stores to better explain the details of the program.
While you may have avoided the restocking fees and forced purchases until now, it's unlikely you'll get a break from these in the future. The best piece of advice is to make sure you get the rentals in before their due date.
Blockbuster No Late Fees Campaign Busted
