Blockbuster has been caught with its pants down regarding its new "No More Late Fees" ad campaign. Unbeknownst to most, the video rental company's largest campaign to date amounts to a lie. New Jersey Attorney General Peter Harvey filed a lawsuit last Friday claiming Blockbuster did not disclose the reality of its new program.
While it's all in the fine print, Blockbuster's program does not do away with late fees. It simply recategorizes them into a "sale" on the eighth day. If, after 30 days, the video is returned, the charge is credited but then the company imposes the well known, "we'll do anything for a buck" trick and charges a restocking fee. Even if all is disclosed, this has to be one of the sleeziest marketing stunts in recent memory.
"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," Harvey said. "Blockbuster's ads are fraudulent and deceptive. They lead people to believe that an overdue rental will cost them absolutely nothing when, in fact, customers are being ambushed with (a) late fees in some stores, (b) so-called 'restock fees,' and (c) credit card or membership account charges equal to the purchase price of the video."
Blockbuster, of course, in a desperate attempt to cover its ass, issued a statement claiming they were very thorough in explaining to customers how the program works. Even if Blockbuster bought all the time on the Super Bowl to announce this service, it's still a lie. The company not done away with late fees. It's just converted them into something else using deception and creative accounting.
I'm not sure if it applys here in Canada too? As I don't rent videos too often but I thought people might want to know.
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Well... Yes, but it took me about a second to read the fine print online to find out that it was not what it seems. You don't return the video you buy it but credited after you bring it back before 30 days.
Come on, people. Such a litigious society. Give me a break!
Read, read, read. And when you're done, read some more.
I could swear the advertisement says if you don't return it in a week they'll charge you for the cost of the video, ie. I could swear they are very upfront about it. I know I heard it somewhere, before it became the issue it is now. Of course any minor issue in the United (oops, I spilled hot coffee on me - they're gonna pay) States is cause for a BIG lawsuit.
The elimnation of late fees, false as it is, is nothing more than a set-up. As the market becomes more competitive BB can justify their rental pricing stating that each rental is good for 7 days. This is just another way for them to bouy the pricing. There's not much room in a $4 rental.
Remember when Rogers decided to have their rentals good for two days. Everyone got used to the two day rental and then they decided to make most new releases one day "platinum" rentals. They cost just as much as a two day rental but are only good for one day. The two day rental got me to switch to them, now it ticks me off every time I go to rent a movie (not often anymore) and they are all one day only.
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Blockbuster Video & Late Fees, Be Careful!
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