Blockbuster sued over late fees ('no more late fees' claim is deceiving)

[truthpusher]

http://money.cnn.com/2005/02/18/news/midcaps/blockbuster_suit/index.htm?cnn=yes

Blockbuster sued over late fees

N.J. attorney general says the video rental chain violated consumer fraud laws.

February 18, 2005: 4:41 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.

(snip)

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.

complete story: http://money.cnn.com/2005/02/18/news/midcaps/blockbuster_suit/index.htm?cnn=yes

[KingoftheJungle]

1. thats bs, the "fees" are equivalent to renting it a second time

[merwin]

2. I was wondering how long that would take to happen. It's outright lying.

[MJP]

3. Aha!

I knew I saw something about an "extended viewing fee" the other day, while at blockbuster.

BTW, I think this will come back to haunt them, as while there, I noticed Nothing was in. People aren't returning anything. (I know they will when they find out about the extended viewing fees) But, I walked out with nothing.

[The_Nick]

4. The past month

I called this a month ago.

As soon as I saw giant posters everywhere, I wondered what was up. I rent at Blockbuster several times a week and NO ONE ever once offered me an explanation. I read tons of articles on the internet all the time, so as soon as I saw "end of late fees" I looked it up and discovered it's dubious conditions.

Once I found out the details, I often made jokes about how stupid it was to mislead customers to a younger employee at my local Blockbuster (who has excellent taste in movies).

I was never once told about the policy (though I already knew what it was).

TODAY, the very day I read on MSNBC that the New Jersey Attorney General was suing Blockbuster over this policy, I went to Blockbuster and there was the manager handing out pamphlets detailing the "end of late fees". As the AG said himself, customers do not like to be made to feel like suckers.

[Lone_Wolf_Moderate]

5. That seems fair, doesn't it?

I mean, they give you an extra week, and charge you a $1.25 for restocking, and only after a month do they charge you full retail. That seems reasonable. The problem is that people might think this is an unlimited rental deal, in which you can keep movies out as long as you want. That's not how this works. They really should've told people people how it worked, although I knew the whole "no late fees" deal was suspect. They should call it "less late fees."

[alarimer]

23. But they should let people know clearly what the terms are

Anything less is deceptive advertising, in my mind at least.

[kypper]

59. They do

It's in fine print on all the signs.

[tcoursen]

72. They do

Well, at least the blockbuster in my town does.

When I rent a movie, they hand me this little piece of paper. I think I have heard that people call them receipts.

I looked at it once. It had a due date printed right there.

People need to get over this. You rent a movie. You know that there is a due date. They have signs all over the damn store about 2 day rentals, 1 week rentals. Hell, the friggin' cases even say how many days you can have the movie.

What is so complicated about returning a movie on time. And why the outrage when you fail to bring it back on time, and the person you rented it from wants to charge you something. They are losing money if you don't bring the movie back. They can't rent it to the next person. So you just expect them to let you keep the damn rental forever and ever and not charge you anything.

[candy]

73. Their ads were very deceptive,that's the problem.

Other than that,I agree with your entire post.

[tcoursen]

74. in store

I don't know how all blockbusters handled it, but mine was all over it. They still are.

When you rent a movie they specifically tell each person that there is no late fee, but that they will charge you for it after 7 days. This policy started at the start of the year, and now they are still saying this to each customer.

I am guessing that other blockbusters aren't handling it the same way, but i can't really see how anybody that rents one from the blockbuster in my town could complain if they got charged.

They changed the policy to try and get more people in the store. People don't like the late fees when they are a few hours late, or even a day or 2. So they just don't rent movies because they know that by the time they rent the movie and then pay the late fee for the 1 or 2 days, they might as well have just bought the DVD. So they eliminate that charge to try and get more customers. How are they supposed to advertise it?

The bigger problem with the policy is that it is now impossible to get new releases. The shelves on the weekends are empty. People used to rent movies for the weekend on fridays. Now they rent them earlier because they now know they can have them all weekend and not worry about the late fees. I know people that now go to blockbuster once a week. They go on tuesday, new release day, and get a new release. They used to have to have it back on Thursday. Now they just hold it those extra days and just bring it back on the next Tuesday, still within the grace period.

[tx_dem41]

75. Good analysis. My guess is that people just like to complain and be a...

victim. Not sure why, but they sure seem to.

[Tyrone Slothrop]

30. What is a "restocking fee" if not a "late fee"?

All videos have to be "restocked" to the shelves regardless of how long they've been rented.

The "restocking fee" is, quite simply, a "late fee", no question!

[skypilot]

58. I agree with you.

I think it seems reasonable also. To be charged a mere $1.25 after a week is no big deal. There mistake was marketing it the way they did, especially those commercials that made it seem as though we'd reached the "end of an era" of late fees. I also agree with the poster who said that this is just going to cause BlockBusters trouble because people are just not going to return their rentals. BlockBusters should have seen that coming.

[Sugarbleus]

6. Okie dokie...I wondered what was up with that advertising..

I don't rent all that often but as I drove by the store--and as I saw the continual ads on the tube, I wondered what it meant. Does that mean I can keep the thing FOREVER?? LOL

You just KNOW there had to be strings. I hate it when businesses pull cheezy gimicks like this. Buyer Be Ware still holds true I guess..

[Anus Retainus]

7. I finally quit using them after this

I had joined their $24.95, rent as much as you like - two out at time max. This worked out great as I was able to rent and watch a lot of films. Once they intraduced this new policy, the shelves went completely empty. I complained to the management and promptly dropped my membership in front of a bunch of customers, who also started complaining about the stocking levels too. It was good to see that I wasn't the only one pissed about their deceptive policy.

[Squatch]

29. My wife and I just did the same thing.

The manager said that they were getting a ton of people who were quitting their subscriptions because the shelves are virtually empty.

It was great to have the subscription so we could watch all the independent and classic films.

[kath]

37. WHAT "independent and classic films"?? Around here they mostly just have

mass-market crap. A few years back we wanted to watch "Mr Smith Goes to Washington" and they didn't even carry it.

[Systematic Chaos]

8. Blockbuster blows donkey balls

Back in the early '90s when I lived in the Minneapolis area, I rented a couple of Sega Genesis games from a store near my job. While I still had the games, my manager had me work several shifts at a store on the other side of the Twin Cities. This kept me away from the area of my home store until the games were about 3 days late. When I was finally able to go back to my home store to work, it was a graveyard shift and Blockbuster was closed. I put the games in the night drop and figured I would just pay the fees when I was ready to rent something again.

Well, the Blockbuster people decided that they would never give me another moment's peace until I paid their $8 or whatever in late fees, even though they had their games back. I got daily calls and a couple of letters from them about the money. I would have understood that level of contact if I still had their stuff, but give me a BREAK!! I ended up going back to pay them their money, and on my way out I tossed my pre-confettied membership card onto their counter. I have never given them business since.

[William Bloode]

69. Hahahaha,

I would shit in the box and then gave it to them. :D

[RebelOne]

9. Forget Blockbuster. Join NetFlix.

I have been a member for over a year now and I have no complaints.

[VirginiaDem]

10. ditto on Netflix--one of my movies got lost in the mail and

Netflix covered it with the caveat that if you do it too many times then they'll charge. By that point in the cycle, Blockbuster would have charged the proverbial left testicle or left breast or left arm or left side of the house...

[Xithras]

39. Netflix would get a lot more customers if they rented games

Really, games are the only reason I still use Blockbuster. When I decided to give up on their local store not too long ago because of stocking problems, I looked at both the Blockbuster mail service and Netflix. In the end, Netflix lost out simply because they didn't carry games.

One of my coworkers is a big Netflix fan, and constantly sings their praises around the office. I've heard a lot of people point out the same thing to him, and state that they keep their "old-fashioned" video store accounts simply for the game rentals.

[girl gone mad]

51. I'm really happy with Netflix...

They have almost everything and the turnaround time is good.

I agree with you about games, but we buy games used online now and just resell them when we get bored with them. Even with the shipping fees, it still only ends up costing about what it would to rent all those games, and we don't ever have to worry about late fees. I guess it might not be practical if you're buying a new release and planning on keeping it for more than just a few weeks, though.

I think Netflix believes that the games are too likely to be stolen, either by the customers and their friends or by mailbox thieves. They're probably right.

[chickenscratching]

60. netflix rules moustachios!!!!!!!!!! n/t

[matcom]

11. Hate to say it. I am with Blockbuster on this one - in principal

yes, they suck. BUT they are a business. i don't use them much anymore (not since cable on-demand) but look. why the HELL should you be able to rent a movie and keep it for a MONTH for NO FEE? if you can't watch a video in a month, DON'T RENT IT UNTIL YOU CAN!

frankly, keeping a movie for a whole month is rude to the other people who may want to rent it. i think the "free for a week" policy was wonderful (again, i hardly ever use them anymore) but they can't be expected to just empty their shelves for 30 days at a time. pretty soon, people will walk into empty stores (thanks to inconsiderate patrons who think they can sit on a movie for a whole month) and customers will leave in droves.

sorry but i'm with Blockbuster on this one.

BUT

they should have advertised this more openly. if they are at fault, its their marketing dept. that fucked up here.

[Lone Pawn]

15. It's not the principle of charging late fees we're complaining about

it's the fact that they explicitly claimed there would be no late fees in TV, banner, and in-store ads, and claimed nowhere that late fees did in fact still exist. "THE END OF LATE FEES" and "SAY GOODBYE TO LATE FEES" in no way can be interpreted as "WE STILL HAVE LATE FEES." Late fees are okay--nobody doubts that--but it's illegal and immoral to claim that they do not exist when they do.

[THUNDER HANDS]

17. technically, its not a late fee

its a restocking fee. After 30 days Blockbuster assumes you want to keep it and charges you the amount it would cost to buy it.

I don't see anything that deceptive.

[truth2power]

21. Restocking fee....haha. Funny!

The issue is feeling like you've been suckered. This is what the Chimp administration does - redefine something as something else - and then keep screwing us over. I don't like to feel manipulated.

Nah! I don't ever rent from Blockbusters, but I smelled this one a mile away.

[THUNDER HANDS]

32. how are you being manipulated?

If you keep a 2-day rental for over a week, YOU are manipulating other people who might want to rent the movie.

If you keep if for a month, you better be in a coma, if not, you have no reason to gripe over paying $1.50.

I used to work at blockbuster and once rang a guy up for over $200 in late fees. People are just rude and lazy sometimes and anyone who complains about this was looking forward to gaming the system.

Well, guess what, there's a catch. A minor one, but nothing to warrant suing the company over.

[girl gone mad]

52. I have often kept a Netflix movie out for more than a month.

Because I was just too busy to find time to watch it. I don't consider myself rude or lazy, and I certainly wasn't planning to game the system.

Blockbuster is trying to scam people by advertising "no more late fees". They want to win back customers like me that have switched to Netflix or other services to avoid thos late fees. A significant share of Blockbuster's bread and butter has always come from the late fees. In fact, they lost a lawsuit several years ago for overcharging late fees, sometimes charging customers multiple times what a new copy of the late movie was worth and charging more for a movie that was a day late than it cost to rent the movie in the first place.

Sorry, but it's completely dishonest to lure people in under the guise of "no more late fees" and then start charging hidden late fees. Blockbuster knows exactly what they are doing. They were losing market share and so they've resorted to desperate measures to get their profits up.

[matcom]

56. i don't see where they are "scamming' anyone

they are RETAIL which means they have to stock the shelves. unlike NetFlix who work out of a warehouse.

a month to keep a movie is rediculous IMHO. if you are that busy, don't rent it in the first place.

[truth2power]

86. First of all,

I rent videos from Hollywood Video (is this a National company?). Rentals are for 5 days and if you rent a new release and bring it back the next day you get $1.00 off your next rental. About 99.5% of the time I return my videos the very next day.

I agree with you - keeping a video longer than you need to deprives others of being able to view it. Occasionally, I've had a video slide under the seat of the car and forgotten about it, though. That accounts for the other .5% in the figure above. It happens.

With Blockbuster, it's the deceptive advertising that I think is manipulative. Making people think they really won't ever have to pay late fees is ridiculous on it's face. If Blockbuster did that, they'd go out of business.

And calling a late fee a restocking fee is silly, IMO. Call it what it is!

[LifeDuringWartime]

28. who would want to keep a rental DVD?

you're not allowed to go to the menu on the disc until EVERY preview plays. purchased DVDs do not have this friggin annoying feature.

[tcoursen]

76. uh, yes they do

The DVD's you rent are the same ones they sell.

And many many DVD's have forced trailers. Some companies are worse than others. Universal is the worst offender.

[tx_dem41]

34. Actually, they were quite clear about it starting with their Press Release

http://biz.yahoo.com/prnews/041214/nytu067_1.html

I don't see what the big deal is about.

[order_of_the_shadow]

12. Well what due u want ... free stuff?

Yeah i agree that they messed up with the marketing, but it is a great program. people are so selfish, to keep a movie for 37 days after the due date and then whine about the fact that they were charged the movie cost. that's all it is. if u have a movie out for a week after it is due back (7 extra days... how lazy can u be?) then they charge u the movie. but if u bring it back with 30 days after that(an extra month) they will only charge u 1.34 restocking fee (for calling u sending u post card and for checking their shelves everyday to make sure they didn't miss it on accident)and refund u the money of the cost of the movie.

so after being inconsiderate enough to make me with 3 weeks for a Ray u r upset that the charged u for it. it is ur own fault. the suit is dumb, it isn't like they weren’t told they would be charged, the get calls, and r warned. And what is a late fee anyway... it is a continuous charge for the extended use of a product or service past the return date and time. well if something is due by noon and u bring it in at 5pm they don't charge u, in fact the say it's okay. i hate the program b/c i think people should get fees to prompt them to bring their movies back so i have a chance to rent them. i am sick of the whining of people who try to take advantage of a system and then get caught. if u r going to risk it the guess what there just may be consequences

[onager]

13. My Schlockbuster hypocrisy story...

When Martin Scorsese's The Last Temptation of Christ came out, you may remember that various religious types protested against it, etc.

Schlockbuster caved in to the Christo-Fascists and announced, with much hoopla, that they wouldn't be carrying it for rental.

After it came out on video, I went into a local Schlockbuster and, just to be contrary, asked if they had Last Temptation.

The clerk looked around the store furtively and whispered: "Yes, we have it, but we keep it under the counter."

Took it home that night and watched it.

[Lone Pawn]

14. That's quite obviously not the point

The point is that they claimed that there were no late fees, and then charged late fees. It might be reasonable to charge, but you can't say you won't if you will. It would be as if McDonalds were to claim Free Hamburgers, and then after you eat it, you get charged five bucks, because they also have the policy (which you were not informed of before purchase) that if you actually eat the hamburger, then you have to pay a fee. I mean who really thinks you ought get a free hamburger? It only makes sense. Besides, you really should have asked the manager first.

[tx_dem41]

35. Ummm...they did EXACTLY what they said they were going to do when..

they announced this policy.

http://biz.yahoo.com/prnews/041214/nytu067_1.html

[Politicub]

43. Who really reads a company's press releases?

I mean, really? People should be informed, but Blockbuster's advertising was deceptive. It's a more liberal late fee policy, but there is still a fee. It is not "The end of late fees!" as they claimed. It's more like "We rename late fees to restocking fees!" Whatever. I haven't rented from Blockbuster for more than a couple of years and I won't start now. But I did notice their ad campaign. The fine print isn't all that punative, but Blockbuster needs to be more truthful in its advertising.

[tx_dem41]

45. All the newspapers, TV and magazines did stories on this when ...

...the policy was introduced. It was quite clear, and restocking fees are standard in business. I wish people would quit characterizing the average consumer as people that don't have brains or any experience in transacting business. Everybody does it everyday.

Also, you enter into contract when you rent DVDs. You should be knowledgeable whenever you enter a contractual situation.

[Occulus]

16. Yes, but

Their advertising showed a BIG crowd chanting "no more late fees", their adverts showed a BIG ol' banner being unfurled saying the same, and I (like everyone else on this thread) never knew until I checked in advance that it wasn't really a "no late fee" policy. They never, ever once mentioned charging the "restocking fee" (late fee by proxy, in direct contradiction to the advertising) or the full retail price in the advertising.

False advertising, even on common-sense issues, is still false advertising. I would also add that Blockbuster has been nailed in court for their late fee policies in the past.

As business owners- they should know better.

[chickenscratching]

61. i see your point, but you moustachios thought unwisely...

however, when was the last time a commerical wasn't filled with false hopes or bias? they'll do what it takes for hype, and if the consumer doesn't take the time to research into WHY this is free (because 'free' things should be setting off an alarm in our heads anyway) and then see there are some stipulations that come with this so called 'no more late fee' deal or whathaveyou, you might get screwed, at least a bit... (sorry for the run on there)
maybe a few of you out there feel like you got reamed in the ass, but when have you ever trusted a commercial? or an ad??? you need to watch yourself wisely!
-c.

[Bridget Burke]

20. u r calling people dumb?

Blockbuster's ads are deceptive. But most smart people have figured out that Netflix is the way to go, anyway.

[ConcernedDemocrat]

18. Slimy Bastards

[Roland99]

19. 30 days? If it's a 2-day rental, you get dinged after one week!

[Chalco]

22. Blockbuster sucks. Netflix all the way.

We threw out our Blockbuster membership many years ago, even before Netflix started. They would harass us if a tape was late, charge our credit card. They are complete losers. Now they've got a new way to bilk the public.

[rainbow4321]

24. People just need to read the friggin' fine print....

My teen daughter and I went to Bb shortly after this deal started. They were handing out pamphlets to people who were entering the store. My daughter found the catch within seconds, simply by READING the info that was in the brochure. So how is the company's fault if they provided the info up front and customers didn't read it?

[fleabert]

25. Netflix baby!

they are blue too...

www.buyblue.org

Netflix, Inc 72% Blue
Blockbuster Inc. 40% Red

absolutley NO complaints about Netflix, movies arrive in one day, I can queue as many as I like online, no late fees whatsoever, and a common sense, customer friendly lost movie policy. THEY ROCK! I could potentially rent at least 30 movies a month for less than 20 bucks!

[djack23]

57. Blue / RED

" Netflix, Inc 72% Blue
Blockbuster Inc. 40% Red"

That really mean Blockbuster is 60% Blue . Not that much different then 72% Blue.

David

[fleabert]

88. that's not how buyblue works...did you check the link?

they explain it there... there are graphics that go with the snip I provided, they didn't c&p at all...

here:


Dark Blue: 80% or higher Buy Blue rating
Light Blue: 56-79% Buy Blue rating (NetFlix's Rating)
White: 45-55% Buy Blue rating
Light Red: 21-44% Buy Blue rating (Blockbuster's Rating)
Dark Red: 20% or lower Buy Blue rating

Please Note: As of 2/6/2005 the status of apolitical corporations has changed. Please click here for more details.

Rating: Light Red - 40 %
BuyBlue.org's Position:

Blockbuster currently has a 40% BuyBlue rating due to political contributions for the 2003-2004 election cycle. Blockbuster's executives were relatively inactive politically with the exception of one Democratic donation from their CEO. Blockbuster was closely held by Viacom until late 2004 and therefore is associated with the Viacom PAC for the 2003-2004 election cycle. Since they are now a separate entity, it'll be interesting to watch what they do in 2006.

2003-2004 Election Cycle Contribution Statistics
View BuyBlue.org Methodology
Total Spent: $244,500.00

40.25% to Democratic Party candidates
59.75% to Republican Party candidates
0% to Other candidates
Company-related Political Action Committees (PACs):
What is a PAC? (courtesy opensecrets.org)
(source: opensecrets.org)

VIACOM INTERNATIONAL INC POLITICAL ACTION COMMITTEE

2004 Election Cycle Contributions: $243,500 (40.00% Dem, 60.00% Rep, 0.00% Other)
Click here for full list of donations from opensecrets.org

Individual Donors:
(source: fec.gov)
John F. Antioco - Chairman and CEO

$1,000 to LEAHY FOR U.S. SENATOR COMMITTEE (D) on 2003-03-28
(FEC Schedule A: 23020201131)

there is equally as much info on Netflix if you go to www.BuyBlue.org and click on 'N'. then click on Netflix for in depth info.

Sorry I did not make clear what the percentages meant.

[fleabert]

89. Update: sent back Napolean Dynamite TODAY...

and got an email TONIGHT that it had been received, and my next movie should be here tomorrow! I love it!

[maxsolomon]

26. further poisoning of the english language

nothing means what it says anymore.

thank you advertising & public relations industries.

[napi21]

27. I don't rent very often from BB, but when I first heard this new plan

it fell into the "too good to be true" catagory. You know, when something doesn't make sense, there's something you aren't understanding!

I'm glad some AG took the initive and went after them. If enough businesses are penalized, maybe the rest of them will slow down on the deception!

[Corgigal]

31. agreed

which is why I asked the clerk when she told me what days the movies are due back, are you sure you stop the late fees? She said that well, I wouldn't keep it out a month or anything. So I returned it 8 days later and they want a 1.50. I haven't paid it and NO I wasn't given any change in our policy information either.

It's not the funds. I'm just not sure I should give them a 1.50 if I asked a employee of their own store and didn't get a straight answer from them. I hope they lose their customer base. I hope it was worth it.

[tx_dem41]

36. Obviously, when you first heard of the new plan, you didn't read ..

the whole press release. They were quite clear about the restocking fee.

http://biz.yahoo.com/prnews/041214/nytu067_1.html

[Politicub]

44. You and your press releases

Do you work for Blockbuster's PR department or something?

[tx_dem41]

46. Nope, I haven't entered a Blockbuster store in years...

their selection sucks.

[chickenscratching]

62. thank you for saying that! you have chosen wisely....

[Corgigal]

55. read it where?

I asked the flipping people who worked there. Now when I found out about the stupid 1.50 then I looked it up on-line because I obviously didn't receive the information.

All the clerk had to say is , hey after a week they do charge a 1.50.
They don't want us to know because they want to ding us.

[tx_dem41]

64. Newspaper stories, TV reports, press releases....

....business magazines, fine print in the ads, brochures that are made available at the store (according to posters that have gone there). Also, although I don't go to Blockbuster, people on this thread have said its in the contract you sign when you rent the DVD.
With all this, its kind of hard to plead that you are being scammed.

Seems pretty clear to me.

[Corgigal]

66. Should also seem clear

that I asked a flipping employee at the damn store and she said , again I quote, "well I wouldn't keep it past a month or anything."
A verbal contract with the store when asking someone working there should be legal held in court as some agreement I signed over 10 years ago. Trust me, I didn't trust this new improved Blockbuster and I made sure I got the name of the clerk too.
Nothing about some lame stocking fee, nothing about a damn thing.

I joined blockbuster over 10 years ago. I have not received any update on any agreement. Now I'm going to make my kid pay the 1.50 because she forgot about the video and it was in her room. That isn't the point however because I took it back and dropped it in the box on day 8. If Blockbuster ever looked on how much they have made from me in 10 years they have to think about what a stupid idea this is.

I don't think the Attorney General in NJ just hates Blockbuster. They are fraudulent.

[tx_dem41]

68. How exactly are they fraudulent?

I don't shop there, but when you rent a movie do you sign a receipt or any piece of paper?

Also, I'm pretty certain that agreement would override what the worker told you verbally. Plus if what the worker said was "well I wouldn't keep it past a month or anything", nothing in that statement addresses anything about restocking fees (or really any fees at all). That surely wouldn't hold up in small claims court.

Also, the real lesson should be personal responsibility. Seems like that you daughter has learned one.

[tx_dem41]

65. Also, if you enter into a contract without reading the terms of the..

contract that are written on the piece of paper you sign, you deserve to get "dinged". You are responsible for what you sign on a contract, so maybe people need to act responsibly.

[mojavekid]

33. I was doubtful, so I went to the Blockbuster website,

and read the fine print. The restocking fee was there, however, they did not tell you how much it was, (I thought it would have been higher)

True, they should have been right up front with it all, as it is no BFD...but now it is.

[TheWatcher]

40. I think people keep missing the point

I hate to sound cynical but a point that keeps coming up is "Well, they announced what their intentions were, and people just didn't read the fine print."

EXACTLY.

Did anyone ever figure that was the whole point?

Like I said, I hate to sound cynical, but I think whoever came up with his grand idea KNEW EXACTLY what they were doing. They knew that for the most part, most people DON'T read the fine print. To me the whole thing sounds like one big mind fuck to generate hidden fees and yet again fleece the gullible consumer, which quite frankly corporations excel at doing.

It's easy to fleece most people, and they know it. And they do it at will, because they know that the consequences will be minimal. And when they get caught, a little bad press, some bad taste in people's mouths, a number of pissed of consumers, but in the end, it's worth the risk to make that extra $ because the American Consuming Public has the attention span of a grasshopper, and will fall for the next BS marketing gimmick when it is unveiled.

Bottom Line.....Just another example that no one ever went broke underestimating the gullibility of the American Consumer.

[tx_dem41]

42. It wasn't in fine print in the press release or the news stories that...

were written about the new policy. In fact it was stated pretty clearly to me when I read it. I can't stand how everybody on this thread is actually denigrating the average consumer. People are smart enough to know that they can't keep the DVD or tape forever.

On the "fine print" point, when you open an account or rent a DVD, you sign a contract with Blockbuster or with any other video rental place. You need to read the fine print because its a CONTRACT. People should know that. They should take responsibility for the legal transaction into which they are entering.

[tcoursen]

77. How about this story

Here is a link to story that was printed when the policy was announced. Seems pretty clear to me.

http://biz.yahoo.com/prnews/041214/nytu067_1.html

So I think you are wrong about news stories not having the information. Their web page has always had the information as well. I know this because when I first heard about the policy I went to their web page and read about it. it is all right there, and always has been.

[tx_dem41]

78. You misread what I wrote....

I was responsding to a posters complaint that it was only in "fine print". I stated that it wasn't in fine print (implying that it was stated clearly in the stories I read). Maybe I wasn't clear on that, Sorry.

I've actually posted that same yahoo story on this thread.

[jayctravis]

38. Is it a "late fee" or is it a "restocking fee".

I am a satisfied Netflix subscriber, only using Blockbuster on rare occasions of impulse movie-renting. I haven't been to BB since they implemented this change, but saw the media push.

So what's the deal? Rent a movie, they're due two days later? Do they still have different due dates for new releases and stock favorites?

I infer from the posting here that you can return a movie up to a week late, after that you're charged the retail price of the movie and you get to keep it?

If you bring it back within 30 days they charge you $1.50 to credit you back the price of the movie? I'm thinking it's either that or after a week they replenish a missing movie and your $1.50 is BB's surcharge so they can mail the replacement movie back to the warehouse. It's not to restock the movie on the shelf, it's to send back the replenishment copy your late return generated.

They shouldn't call it a restocking fee. If they did it the former way, people would be more than happy to pay $1.50 to get a $25 charge off their account.

What would be cool is if they charge you for the movie, they send you a case insert with the movie artwork to replace the Blockbuster logo with a friendly notification of the charge. At that point it's *your* movie unless you wish to pay them $1.50 to reverse the credit charge within 30 days. That at least makes it not seem like a late fee. They probably would sell more movies that way if they marketed it as "Rent any movie...if you like it it's yours for retail less your rental fee! And we'll send you the original package art!" Merge the rentals into "rent to own".

[AgadorSparticus]

41. my biggest complaint with blockbuster is that the majority of their

DVD's are in widescreen format. not everyone has a widescreen nor do they want one.

[tcoursen]

71. get used to it

Well that is how most DVD's are released.

Do you want to see the whole movie, or do you want to only see what they crop and reframe to fit on your TV?

I think eventually all TV's will end up being widescreen. It isn't just the large screen TV's that are coming in widescreen, the smaller size TV's have widescreen as well.

[Horse with no Name]

47. It was explained in detail to me

and I was given a brochure with it in print when they first started this.
The way it was explained to me was that you get it for the initial rental period, whether it is a 2-day or a 7-day rental.
Then they give you an additional 7 days on top of that to get it back. Honestly if you can't watch a movie in that length of time, you ought to return it unwatched or not out of courtesy so someone else can watch it. I hate this "me me me" society.
During this time you don't have late charges.
If after the additional 7 day grace period you do not return it, they will call you.
If you don't bring it back then they charge your account the amount of the movie--because obviously you want to keep it if you can't make it back in that length of time.
IF you bring it back--deciding you don't want to purchase it--then they credit your account the amount they charged it--less a $1.25 restocking fee. Then if you keep it longer than 30 days past due then there is another fee applied.
I don't understand what is difficult about this. I don't understand the confusion. It is very self explanatory.
The AG that brought this suit just provides stupid fodder for asswipes tort reform.

[CAG]

48. OVERBLOWN

Look, anyone that thought that "hey, this means Blockbuster won't mind me keeping 5 or 6 movies around my house for 3 or 4 months" just has no common sense. Haven't they ever heard that if it sounds too good to be true, its too good to be true???
I'm against misleading advertising just as much as anyone else, and I'll be at the head of the line protesting misleading advertising that leads to people taking a dangerous drug they shouldn't, signing onto a $10,000 shark loan, or voting for people that don't have the best intentions.
But a class action lawsuit to get me back the $20 late fee just because I didn't read the fine print? I have bigger fish to fry.

[truthpusher]

82. Some people end up owing hundreds of dollars...

...I've heard some pretty awful stories.

[Javaman]

49. Lackluster video...don't rent from them to begin with...

go to a local store

[Horse with no Name]

67. Well our local store

Charges $3.50 for ONE night.
IF you do not bring it back by 6 pm the next day, then you are charged $5.00 A NIGHT late fees--in excess of their nightly rental.
So you can understand why Blockbuster at 30 miles away is a much better deal for me?
:)

[Spirochete]

50. I don't really understand this

people are mad because if they keep a movie more than a week past it's due date, they have to pay a whopping $1.25? I'm sure they'd like to keep them indefinitely, disregarding everyone else who is waiting to rent the same movie, but no copies are in stock, because people are sitting on them.
Well, maybe after this lawsuit, they'll have to bring back late fees, and everyone will be happy once again, right?

[tx_dem41]

53. Yep, that's a perfect summary of the situation. n/t

[muse]

63. It's because they are trying to make you think they are like netflix

which really DOESN'T charge late fees. When I saw the first Blockbuster commercial about this, I thought, wow, they are just like netflix now except that you can go to a physical store. They said that they were announcing the end of late fees. So, you assume you can keep the movie as long as you want and not be charged anything.

You really can do that with netflix.

[tcoursen]

70. Blockbuster vs Netflix

Blockbuster has three ways you can rent movies.

First way is the traditional way. You pay for each individual movie that you rent. They used to charge you a late for for each DAY that the movie was late. They changed that policy to the current policy. No late fees for the first SEVEN days. At that point they charge you. You then have 30 days past that to bring it back to reverse the charge. I think somebody posted that the restocking fee was 1.25. So lets review the new policy. New policy will let you return a movie 36 days late and only charge you a restocking fee of 1.25. Under the old plan what would the late charge be if you returned a movie late 36 days? Of course under this plan you can always RETURN THE FUCKING MOVIE ON TIME.

Second plan is an in-store plan that they call Movie Pass. I believe there are two levels of movie pass. One is three movies at a time one is two movies at a time. This is exactly like Netflix, but in store. As many rentals as you want, two or three at a time. So Blockbuster can be exactly like netflix if you want. If you rent more than 5 or 6 movies a month, then this is probably the plan you should be on.

The third way to rent with blockbuster is online. They have a plan that is exactly like netflix. I subscribe to this plan. I get three movies at a time for 15 bucks a month. Plus you get two free movie rental coupons a month that you can use at a store. So I get older movies and tv shows from the online service. Stuff that that they don't have in stores. Then I use my two free rentals a month for new releases.

I really think that the people opposing this because of the restocking fee really really need to get a life. Having that seven day window should be WAY more than enough time to get your ass back to the store. Meanwhile it eliminates the rush to get it back by noon. I have seen people argue in store about getting charged for getting the movie back 5, 10, 15 minutes late. I know that I always used to stop on my way to work to drop back the movies. Now, if I am running late in the morning, which I usually am, I can just stop on my way home from work and not worry about it.

Don't politicians have better things to worry about?

[Spirochete]

79. Good point

I use Netflix a LOT more than Ballbuster, and I can see where people would just assume no late fees meant no late fees. With Netflix, though, you can't get another movie till you send the old one back, whereas with Ballbuster, you can just go down the street to the next store and rent more movies, so there's less incentive to return them. I figured getting rid of late fees would never work anyway, because too many thoughtless people will abuse the system.

[Charles19]

54. Haven't walked into a Blockbuster in about 5 years

and I have no idea why anyone else would go in one either.

The first time they hit me with those BS fees I thought fine, paid it and never did business with them again. Nor will I ever again.

[VegasWolf]

80. So these dimwits figured BB would let them effectively buy a

movie for the price of a rental. For 3.99 you
never have to return it if you don't want to. Right.

[tx_dem41]

81. Oddly enough, that's what a lot of people seem to think by reading ..

a lot of this thread.

[fugop]

83. Sleazy move

I think the Blockbuster move was sleazy only because by touting the "No more late fees!" idea, they're obviously trying to capitalize on the success of services like Netflix that base their business on the no-late fees, no return date model. Blockbuster focused ads and marketing on fooling people into thinking they're doing the same thing as Netflix. I can't count the number of friends and family members I have who have switched from Blockbuster to the mail movie services because they're sick of the late fees and the whole "Get it back by noon of the third day!" thing.

I hope they get their butts handed to them. So they changed the name from late fees to restocking fees. What a bait and switch.

Glad I wasn't wooed to switch away from Netflix, that's all I can say! (I wouldn't have anyway, since they have my loyalty just for offering an alternative to Blockbuster where I can get just about anything I want, whenever I want, as long as I time returns right!)

[tcoursen]

84. They are doing the same as netflix

Before this even took effect they were already like netflix.

They have "Movie Pass", which is an in-store version of netflix. If you rent more than 5 or 6 movies a month, you should be on this plan.

They also have their own online service which is the same as netflix, except that it is 3 dollars a month cheaper, and you get 2 free in store rentals a month.

Also don't forget that the restocking fee is a hell of a lot less than late fees.

People are complaining and wanting to get rid of this. They basically want to get rid of 1.50 restocking fee for returning a movie up to 36 days late for a system that charged you a rental fee for each day the movie was late. I think the late fee was 4 dollars a day. So the late fee for a 36 day late movie would be 144 bucks. So it makes a lot of sense to want them to scrap this new policy.

[tx_dem41]

85. This grandstanding threat of lawsuit from the NJ AG...

will die a pitiful, quiet death, because there is quite clearly no fraud. BB is quite clear in their advertising, as well as news stories, in-store pamphlets, press releases etc. That some people would enter into a contract without reading the entire policy including the fine print is the height of irresponsibility (wonder if they do that when buying a house) and will (or is it lazy?) ignorance.

[JPalance]

87. BlockBuster is the Khmer Rouge of video rental chains