N.J. attorney general says the video rental chain violated consumer fraud laws.
February 18, 2005: 2:34 PM EST
By Jessica Seid, CNN/Money staff writer



NEW YORK (CNN/Money) - New Jersey Attorney General Peter Harvey sued Blockbuster Inc. Friday, claiming the video rental chain is deceiving customers with its new 'No More Late Fees' rental policy.

The lawsuit accused the movie rental chain of deceptive advertising and violating the state's consumer fraud laws.

"Blockbuster boldly announced its 'No More Late Fees' policy, but has not told customers about the big fees they are charged if they keep videos or games for more than a week after they are due," the attorney general said in a statement.

Under Blockbuster's (Research) new policy, put into effect on Jan. 1, customers can keep a rental for one week past the due date at no additional charge. After that, they are charged a restocking fee of $1.25. And if the overdue item is kept for more than 30 days, Blockbuster will charge the customer the retail value of the item.

In a brief statement, Blockbuster defended the new policy, saying it was surprised and disappointed by the lawsuit.

"The fact is there are no longer late fees at Blockbuster," the company said. "We're disappointed he (Harvey) took this action, because we believe our end-of-late fees program is a terrific program and we've received tremendous feedback from both our customers and employees."

The company said it was "surprised" that Harvey did not contact company officials to allow them to explain the new policy.

Dallas-based Blockbuster (Research), with some 9,000 outlets in the United States, is reportedly facing growing opposition from antitrust enforcers over its hostile takeover bid to acquire Hollywood Entertainment Corp (Research)., its smaller rival.

Hollywood Entertainment's board on Thursday rejected Blockbuster's bid in favor of a lower bid from Movie Gallery (Research), saying the Blockbuster deal "raises significant antitrust issues" that could cause delays or a rejection of the transaction by the Federal Trade Commission

Good for him. Blockbuster deserves everything they get. They never told anyone about the fact that they will charge you the price of the movie or there's a fee if it's late a week. That's a late fee.

Did people think they could rent a movie for $5 and keep it forever? Fuck man, read the fine print.

Nobody is keeping movies forever but when you say there are no more late fees, yet charge a customer $1.25 if it's not returned in a week and call it a restocking fee, that to me is bullcrap.

I guess I see why people would take Blockbuster to the letter on their new policy. I'm no fan of Blockbuster, but, it is a business after all. There's got to be some incentive for customers to return their product. If you're hanging onto a rental for 30 days, you should get charged for it.

That's not the point. But it's the way they've communicated this policy to their customers. I rented a movie from them a few weeks with a friend and nobody told us what we would be charged if we didn't return it in a week or 30 days. All they said was, there are no more late fees.

I used to go to Blockbuster until I found out that a local Drug Mart rents old movies for $.99 and new movies for $1.99. If they don't have what I went, then I go to Blockbuster and sadly shell out $5 for a DVD.

Why don't you try Netflix?

This whole policy sucks ass. I am a member of their unlimited rental club. Only problem is that now every asshole keeps the big new releases (Ray, Motorcycle Diaries) out for 10 days. I have heard Blockbuster employees saying things like "please bring it back in a timely fashion if possible so others might rent it." Guess what people are lazy. Most if they have no incentive to return will not. Late fees were in place for a reason. Hell the public library has late fees. Blockbuster did not think this plan out at all. I am about to head back to NetFlix with open arms.

I guess I don't see where you're coming from. Is it just the idea that they didn't tell you there are "hidden" fees? I don't ever rent from Blockbuster, so I don't know what the stands are still like. Is there still a 'weekly rental' and are new releases still overnighters?

I'm not trying to be difficult, but doesn't common sense dictate that if you keep their product for an extended period of time, then you will be consequences of some kind.

At Hollywood video they have an incentive program to bring popular new releases back early. For certain titles they offer you a dollar off your next rental if you bring the movie back the next day.

Exactly. When I rented a DVD at Blockbuster and was told for the first time "there's no late fees" I immediately asked the cashier "how the hell is that gonna work for you guys?" She gave me a hand-out that detailed all of the potential charges. You'd have to be a complete idiot to think you could keep the movie for a month or so and not incur a penalty.

Edit: I wasted my 700th post in a thread about facking Blockbuster when there's a perfectly good Paul Westerberg thread that deserved the honor.

This is exactly what I did as well. I couldn't wrap my head around how they were going to do this. If you can't get around to watching a movie in a week then you shouldn't rent it in the first place.

I figured there would be some rule preventing people from renting more movies until they returned movies they currently have. Then again, I don't rent, so I didn't care about figuring out.



So, did you ever get around to returning Ray?

Good god. In the past you would pay way more than $1.25 for being a lazy ass, and it's ALWAYS been their policy to charge the full price if you don't return it after 30 days. They do a favor to their customers, and get screwed for it. Pretty weak.

I just return them on time. How hard is it to watch a movie in a week, or even in two weeks if you use the grace period.

I couldn't believe the fine print either that they would charge retail value, but they also credit back a certain amount to your account when you finally return it.

Edit: Why rent when you can download it for free, haha?

Got it after I threatened to go back to Netflix which I still intend to do. Jamie Foxx was good the movie as a whole, meh!

What I can't believe is that I actually agree with OPA! on something...

I cant believe that anyone agrees with OPA on this. They're running a business, not a charity. Do you want someone to hold your hand and explain eveything to you? Use some common sense. This is like when people sue over hot cups of coffee not having 'warning contents may be hot' written on them. Blockbuster doesn't know that you plan on returning it on the 31st day or the 315th day. They have to draw a line somewhere and I think 30 days is pretty generous.

Rent the movie and return it when you are supposed to. If you don't know how to do something as simple as that, then you have no business renting movies.

I'm so sick of people using the McDonald's lady example to illustrate frivolous lawsuits when they don't know the facts of the case. McDonald's, in an effort to save a few pennies, were brewing the same coffee grounds multiple times. In order to get any flavor AT ALL out of grounds that have already been brewed, you have to brew them at temperatures WELL above normal coffee-brewing temperatures. The coffee that spilled into that woman's lap and caused 3rd-degree burns ON HER GROIN was brewed at about 200 degrees Fahrenheit.

But way to listen to corporate interests' versions of the case.

well look at mr. "hey i know everything about that mcdonald's coffee spilling case".

go haqpetrol, go!

edited for you, haqy

i also had to look up how hot 200F was

what you think about what's an appropriate timeframe is irrelevant. they said no late fees. there are late fees. fuck'em.

Should they be bound to your definition of "late fee?" There are "restocking fees" and "non-return fees," but no "late fees." Besides, this policy benefits all but the most anal customers. I really don't understand the need for complaint. Do you WANT them to return to the old system?

Some people would say "Caveat Emptor", but I'm gonna skip over that little piece of wisdom and chime in a fool and his money are soon parted.