Blockbuster Settles No Late Fee Suit 392
fistfullast33l writes "In a followup to a previous Slashdot story, Blockbuster has settled a lawsuit with 47 states and the District of Columbia over its No Late Fees advertising campaign. The New York State Attorney General's Office released the following: '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. The Attorneys General also alleged there was insufficient disclosure that not all Blockbuster franchise stores were participating, leaving customers of those stores wrongly believing that they, too, would not have to pay late fees.' Blockbuster will be refunding customers as part of the deal." Additional commenary available on MSNBC.
Late fees indeed (Score:5, Funny)
Re:Late fees indeed (Score:2)
It said "Blockbuster will be refunding customers as part of the deal". It didn't say when... :-)
Re:Late fees indeed (Score:3)
Re:Late fees indeed (Score:2)
I like Spitzer. I would vote for him to clean out the White house. Special prosecutor like that guy they had chasing Bill Clinton around. But they got rid of him...
Re:Late fees indeed (Score:4, Insightful)
I don't live anywhere near a Blockbuster, nor did I do any more than skim the contents of the advertising campaign when it came out, yet these details were sufficiently clear to me.
See my statement above; it applies in this case as well.
So, we penalize Blockbuster, who were trying to offer a service that I would have been glad to use had I lived within a reasonable distance from one of their outlets, because people are fucking stupid, or illiterate, or both?
This isn't news. This would have been news:
"American public too stupid to understand gist of simple advertising campaign. More news at 11:00."
Re:Late fees indeed (Score:3, Insightful)
Being we don't have a Blockbuster anywhere near my location I didn't really need to look up the details.
That said, it was obvious the advertisement was going to be misleading. You cannot say "No Late Fees" and simply re-word how you charge someone.
It's still not a bad idea, but the wording needs to be honest. Maybe even go so far as an opt-in policy and run it as a "Try it and Buy it!" campaign.
About the insufficient disclosure (Score:3, Interesting)
Now, I know that you are really s
Re:Late fees indeed (Score:4, Insightful)
This is the equivalent of the "you break it, you own it" policy in many stores. You knock over a dispaly of china and destroy it, you own it, and the ownership isn't even as attractive an option as Blockbuster offers, as you have only shards. With Blockbusters option -- which you didn't have to agree to -- you at least walk away with the merchandise.
Re:Late fees indeed (Score:4, Insightful)
Not quite, but unfortunately, the article misses the major point: Blockbuster would charge you the full price of the movie after 7 days (not unreasonable) and when you return it, they would 'buy it back', removing the charge from your credit card minus a restocking fee. The "restocking fee" was, in reality, a late fee for keeping the movie past 7 days.
The difference is obvious when compared to Netflix - take a movie out, keep it for as long as you want, months even, and when you return it, there's no additional charge for keeping it too long. That's "no late fees". Blockbuster's version is "late fee with a different name".
And this is important becuase... (Score:5, Funny)
Re:And this is important becuase... (Score:5, Funny)
Not everyone who reads
Re:And this is important becuase... (Score:5, Funny)
And some are just bastards.
Re:And this is important becuase... (Score:2)
Re:And this is important becuase... (Score:2)
Or at least have a sophisticated emergency plan involving encryption to plausibly claim they are legitimate :)
Re:And this is important becuase... (Score:5, Insightful)
Do you really waste hours of time downloading television programs and movies from the Internet? I've found it's much easier to just go rent a movie than to spend hours downloading some 8 gig DVD rip only to find it's gay porn some jackass put up with the same name as the movie I was looking for (which was not gay porn BTW). I guess I'm just getting old, but I have more money than time these days.
Re:And this is important becuase... (Score:5, Funny)
Re:And this is important becuase... (Score:2)
there are still people on here telling us the industry is a bunch of lambs and we should be bending over for them.
Re:When you use... (Score:2)
Next suit: DVDs by mail (Score:2, Funny)
Re:Next suit: DVDs by mail (Score:2, Insightful)
I think it's high time companies started being held accountable for their business practices and started having to be responsible for their advertisements as well. Huzzah for the consumer backlash!
Am I the only one? (Score:5, Insightful)
You must be the only one (Score:5, Insightful)
That is what the ads strongly implied.
Re:You must be the only one (Score:2, Insightful)
Agreed. On their website, it was burried in the small fine print. It definitely was not easy to find.
I'm a consumer whore! And how! [bitterfilms.com]It wasn't on the stores. (Score:3, Interesting)
I've been driving by these Blockbusters for a while now. They all have giant round signs that say "No late fees!". There is no fine print on the signs.
Re:You must be the only one (Score:2)
Sure, you're right. But who would actually believe this? Who would be naive enough to think that "no late fees" means you keep a movie you rent? After I saw the commercial, I was skeptical. So I went to Blockbuster and asked for details. They gave me a pamphlet that explained it clearly, and now I happen to think it's a good system.
Lawsuits like this are disappointing. Yet another example of people believing that the law should protect themselves from their own
Who would believe it? (Score:5, Insightful)
Looks like we agree that the ads are rather deceptive. I hate frivolous lawsuits as much as the next guy, but it is not frivolous to sue over late-free harassment when you respond to a "no late fees" ad. What part of "no" do you not understand?
Re:You must be the only one (Score:2, Interesting)
This program is pretty cool, because it allows you a bit more flexibility with the rental and it punishes those who abuse it. It's just stupid that they'd flagrantly say "no more late fees" as if you could just rent a movie and never return it.
Re:You must be the only one (Score:4, Informative)
Pay no (Score:2)
Pay no attention to Mr. Garak. He is just a lowly tailor.
Re:You must be the only one (Score:2)
Not being a moron, I assumed I would be charged for the movie if it wasn't returned. I mean, jeez.
Re:You must be the only one (Score:3, Insightful)
So you figured that there really WERE late fees even if the ads said NO late fees. More agreement that the ad campaign was all false.
Re:You must be the only one (Score:2)
No, I figured out that a "late fee" means a fee charged in addition to the normal rental fee if it was returned late. This is opposed to a fee charged to purchase a video. I figured out that, not wanting to give videos away for free, that Blockbuster would simply charge the retail price of the video.
In other words, if you keep the video then you buy the video. This really
Re:You must be the only one (Score:3, Insightful)
But of course (Score:5, Insightful)
It is merely a delayed mandatory financial assessment. How dare you assume it to be anything like a "late fee" !!!
Re:You must be the only one (Score:5, Interesting)
Re:You must be the only one (Score:4, Informative)
Re:Am I the only one? (Score:2, Insightful)
Of course not, but try telling explaining this to the general public. They hear "no late fees", and they think "no late fees, I can keep it as long as I want", they just don't get it. But in the end, it's not really their fault, people just need better education on all the facts. It also helps if you have a tinfoil hat and already think everybody's out to get you.
Re:Am I the only one? (Score:3, Interesting)
The sad part about this is that I can compare Blockbuster with Mr. Ben Ahore of the Central Bank of Nigeria on behalf of the Nigerian National Petroleum Comp
Re:Am I the only one? (Score:2)
No, I expected it would be like Family Video operates. Unofficially, you can just never pay your fines. They did exceptionally well because when people had fines at BB, they just never rented there again. If you have fines at Family, you go in and just rent more movies. Which one makes more money on you?
When it turned out that it was 7days past due date they bill you for the movie, then you can return it in 30 days, then if you bring it back they charge you a seemingly arbitrary reshelving fee... it st
Re:Am I the only one? (Score:5, Insightful)
But for some random guy whose buddy is using Netflix and just knows his buddy can keep movies as long as he wants, why shouldn't he take BB's claim at face value?
(Aside from the inherent problem in taking any advertised claim at face value - but in reality, you can't expect the general public to think that way.)
Re:Am I the only one? (Score:2)
Netflix may not have what is traditionally thought of as a late fee, but you simply can't stop paying for the service and keep the movies forever like some people "fooled" by Blockbuster's program seem to mistakenly believe.
In fact, I believe if you look at Netflix's terms of service, as soon as your account is terminated for lack of payment, you're required to return the movies within seven days or be charged for the replacement of those movie
netflix model (Score:5, Insightful)
Buried underneath those somewhere are a couple of DVDs we had when we closed one of our Netflix accounts to change the name it was under. That was over a year ago. Netflix doesn't care.
Blockbuster introduced "no late fees" as a direct answer to the Netflix model.. at least, that's what people apparently thought. They only wanted to create the impression that they were like Netflix, obviously, without actually doing any of the work.
These people also believe in the Easter bunny... (Score:2)
And the restocking fee for a rental is a lot less bullshit than the restocking fees at Best Buy for something I actually bought!
I LOVE the no late fees policy. I usually return my movies on time, but there's always that one time you forget to take it in on the way to work and you can only drop it o
Re:Am I the only one? (Score:2)
"No late fees" was the first lie... turns out you had to pay a monthly fee to have no late fees (a blockbuster plus membership or some such thing, iirc).
"Here's a free movie rental" was the second lie. My ex-gf and I used to rent movies from blockbuster all the time... sometimes they'd give us a "free" movie as an incentive to come back. We later learned that "free" actually meant "free until the end o
Re:Am I the only one? (Score:2)
I for one thought it was like the NetFlix deal where you *could* in theory keep the movie but they would just not let you rent any more until you returned them and nag you about it. Given the fact they sell these discs for about $10-$20 it wasn't too good to be true. A short term loss but would balance out if it got more people in the store.
No Late Fees - You Just Have To BUY It... (Score:5, Insightful)
Re:No Late Fees - You Just Have To BUY It... (Score:2)
Re:No Late Fees - You Just Have To BUY It... (Score:2)
I am an OGRE...
*chews nails*
Good. (Score:5, Insightful)
I went to Blockbuster myself a couple months ago and the man who checked me out, the manager, said to me "And don't forget, we no longer have any late fees!" Certainly a misleading comment.
Re:Good. (Score:2)
What they have now is still a better deal than before - now, you can keep the movie for a month, return it, and only be charged a $1.25 restocking fee. Before, you'd be charged the price of a full rental for every extra day you kept it. It looks like a couple of idiots have ruined this deal for the rest of us.
Re:Good. (Score:2)
Re:Good. (Score:2)
Re:Good. (Score:5, Interesting)
Re:Good. (Score:2)
But this is such an obvious case. There's no wiggle room here, and Blockbuster knows it. Didn't anybody in the boardroom think "You know, this might cause us some problems?" If I were a shareholder in Blockbuster, I'd be looking for more blood than Roy Disney at a Michael Eisner look-alike contest.
Re:Good. (Score:2, Insightful)
Anyone know... (Score:4, Interesting)
Re:Anyone know... (Score:5, Informative)
Probably because they are demanding more from blockbuster? It was a settlement not a judgement, so I'm assuming that the other states are holding out for a bigger settlement.
Blockbuster wants to settle:
Blockbuster spokeswoman, Karen Raskopf, said the settlement excluded the state of New Jersey, which last month filed a lawsuit accusing Blockbuster of failing to disclose key terms of its new rental policy.
``We continue to talk to them. We are hopeful we can reach a resolution with New Jersey,'' Raskopf said.
Hidden charges (Score:5, Interesting)
And the problem is that when people get hit by this fee, they don't do anything about it - they just roll over and pay. So good to see some action being taken!
Re:Hidden charges (Score:3, Funny)
Re:My cell bill.... (Score:2, Insightful)
If you read the fine print, you'll notice that many of the charges have names like "Tax on gasoline for cell-tower maintenance workers transportation fee". Ok, so most aren't quite that bad, but some are close.
They try to make it sound like the Gov is taxing you directly, but the cell companies are really just itemizing the costs that they incur paying *their own fuckin
Re:My cell bill.... (Score:2)
Bittorrent: No late fees! (Score:5, Funny)
Re:Bittorrent: No late fees! (Score:3, Funny)
The entire store has no movies now (Score:5, Insightful)
Re:The entire store has no movies now (Score:2, Interesting)
I think this forced our Giant Eagle's "Iggle Video" stores to make everything a 7 day rental instead of the previous 1 day rental for new stuff and 5 days for older stuff. As a result there is never anything new in stock. I wish they'd go back to the 1 day rental for new movies.
Re:The entire store has no movies now (Score:2)
I only noticed a lack of customers, and the inability of the cashier to give me an adequate sized bag for the 12pack of Coke that I bought. I was informed that the lack of bags was due to "cutbacks".
Its in the details (Score:4, Interesting)
Yes, they will charge you full price for the item after 7 days. However, if you bring the movie back after 7 days you will not be charged full price. You will be charged a "restocking fee" instead of a "late fee". Granted, it wasn't that bad at $1.50, but I still laughed after reading about the "restocking fee."
Appearance of Impropriety? (Score:3, Interesting)
It is rather hard to find news reports of organizations that have crumbled due to such odious behavior.
Hear, hear!!
Blockbuster's Slogan (Score:5, Insightful)
"The end of late fees. The beginning of more."
I jokingly said to myself that they meant the beginning of more fees, but I guess they weren't joking and instead were being honest.
"The end of late fees. The beginning of more." (Score:2)
Damn Government (Score:3, Funny)
Clearly, this should have been left to the people. (By people I mean a huge class action suit where lawyers get millions and each customer would get a free rental or some other nominal compensation. That is how the system is supposed to work.)
Stupid government. THEY TOOK OUR JOBS!!!
Re:Damn Government (Score:2)
This is OT, but timely: We got a notice just yesterday that we were in a 'class' for a suit against an insurance company and the case has settled. What do we get?
A $9 credit report.
I was once also in a class in which the award was (iirc) $1.23 per member. A multimillion dollar lawsuit it was, too.
I didn't even bothe
Re:Damn Government (Score:2)
At participating locations.... (Score:2, Insightful)
I'm so glad this happened, I was about to switch my Netflix account over to Blockbuster even though I knew deep down they were still evil. Same on me, fooled my twice.
Bad Franchising Move (Score:2, Interesting)
What surprises me the most is that the program is optional to franchises. I think autonomy of franchises in promotions is probably one of the worst moves a business can make. If McDonalds advertises the Big Macs for 10 cents but the local McD's isn't doing that sale, I'm less likely to go to any McD's anywhere because if a company
What's the big deal? (Score:3, Interesting)
Re:What's the big deal? (Score:2, Informative)
In Canada, they probably assumed that people knew how to read.
Heavy hand at a gentle game. (Score:3, Informative)
I'd choose netflix if I didn't have Dish Network now. Oh, and if that weren't enough, I play WoW. I haven't rented a movie since December 20th.
Never trust these ad campaigns (Score:5, Funny)
Blockbuster: No late fees.
McDonalds: Our fried lard-balls are fat free!
NBC: Must-see TV
Click the monkey and win a free iPod
Napster 14 day trial: Download a million songs for FREE
Nigeria: Give us $14,000 and we'll give you millions.
Slashdot: Our moderation system is fair and balanced.
Fox: Our news is fair and balanced.
On the other side, you have one of the most true ad campaigns in history, for the Eagle car company: "Eagle: Not intended for the general public". The general public wholeheartedly agreed.
Blockbuster (Score:2)
They live with the impression that they lend gold jewelry and not movies on 25 cents media. I went to a Blockbuster in my new area where I wanted to open a account. They asked for a credit card and I gave them a VISA debit card. They turned me down because they didn't want a card which has check card written on it. They wanted an actual credit which I didn't want to give them. Next I proc
Re:Blockbuster (Score:2)
Automatic Purchase Program and Franchise Revolt (Score:5, Interesting)
Up to 20% of stores are franchises and many revolted against the "No More Late Fees" program, causing customers to be totally confused. "No More Late Fees" commercials running on all channels and yet my local Blockbuster still charges late fees?
I've been covering this story and more at: http://www.hackingnetflix.com/ [hackingnetflix.com]
- MikeK @ HackingNetflix.com
The Restocking Fee is hardly a "Late Fee"..... (Score:2, Insightful)
If you look at it that way, you could consider renting the movie for $4, allow them to charge you the additional $17 (sale price is based on the DVD's "used" value), and then own it.....one day you can choose t
Re:The Restocking Fee is hardly a "Late Fee"..... (Score:3, Informative)
No "late fees" now in Calgary too... (Score:2)
It seems like a coincidence, but since the inception of the no late fees policy I have never seen Blockbuster less busy. It is a veritable ghost town at my local stores, even on Tuesdays the big release day of the week.
Rogers Video, their main competitor and where I rent now, is always busy. I haven't rented from Blockbuster for quite some time as they never seem to have the movie or game I want in stock and Rogers Video has a much better selection of old
My biggest problem (Score:2)
Only 47 states? (Score:2)
I'm just wondering which three states can't be bothered to prosecute for false and misleading sales tactics?
I just want to be sure and not trust any claims made by businesses in those three states.
Pay in Pennies! (Score:3, Funny)
Spin! (Score:3, Interesting)
You have to admire the chutzpah of their PR guys. From today's press release:
I doubt they're too worried about the $630,000 settlement. This is a company that took in almost $6 Billion in the last twelve months. As an AP story puts it:
So even after putting out nearly a million bucks to pay off the states and put up new signs, they will still make money. Just consider it a cost of doing business.
Re:Late Fee Paradox (Score:3, Informative)
Scenario: Consumer "Bob" rents movie "Incredibles" from Blockbuster.
2 weeks later, 1 week after due date. Blockbuster charges "Bob's" account $17.95 for "Incredibles"
1 week after that: "Bob" brings movie back. Blockbuster credits "Bob's" account for 17.95 minus a "restocking" fee for putting the movie back on the shelf.
Not "late fees" per se, but still extra clams to shell out.
Re:Late Fee Paradox (Score:2, Insightful)
Re:Late Fee Paradox (Score:2)
Re:Just another ID10T consumer error... (Score:3, Interesting)
Re:Just another ID10T consumer error... (Score:3, Insightful)
It's the same thing as advertising made to look like invoices. At the bottom there's fine print saying this is only a sales offer, but plenty of incautious people have been very silly and sent off money. Yes, it's true that in either case the consumer ought
NO LATE FEES (Score:2, Insightful)
Late = After the due date, Not on schedule
Fees = Monetary charges, money, currency
They were charging late fees. It's not idiot consumers, it's idiot marketers who thought they could bend the consumers over.
Re:meant what you say... (Score:3, Funny)
Re:From the fine article... (Score:2)
Re:This could be one of the worst ad campaigns. (Score:2)
He did collect enough through the loophole in the promotion which let him buy points in enough quantity to qualify for the plane (as claimed in the TV advert, anyway).
For specifics, please see the legal record of "Leonard v Pepsi". The TV claim was ""HARRIER FIGHTER 7,000,000 PEPSI POINTS". It cost him about $700,000 to buy the necessary points.
I wonder what the whiz kid who thought of this TV advertisement is doing now?
Re:This could be one of the worst ad campaigns. (Score:2)
Re:I still think it's a good deal (Score:3, Insightful)