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New Jersey calls Blockbuster on BS "No Late Fees" Claim!

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  • New Jersey calls Blockbuster on BS "No Late Fees" Claim!

    I love my home state . If you want to claim "No Late Fees", make sure there aren't any. You can't just lie through your teeth!



    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.

    "There is no question about it – there is a violation of New Jersey's consumer fraud act," Harvey told CNN/Money.

    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.

    According to the Attorney General, investigators from the division of consumer affairs began examining the matter as soon as the policy went into effect as part of a pro-active consumer effort.

    "Our principal goal is restitution to the consumer," Harvey said.

    When asked if he ever rents movies from Blockbuster Harvey responded, "my kids do."

    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.

    Blockbuster shares closed modestly higher on the New York Stock Exchange Friday.
    “I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
    - John 13:34-35 (NRSV)

  • #2
    WTF? How can they be that stupid?

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    • #3
      If you keep it for 8+ days past the due date, why shouldn't they mark it as sold?
      I make no bones about my moral support for [terrorist] organizations. - chegitz guevara
      For those who aspire to live in a high cost, high tax, big government place, our nation and the world offers plenty of options. Vermont, Canada and Venezuela all offer you the opportunity to live in the socialist, big government paradise you long for. –Senator Rubio

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      • #4
        Do I understand Blockbuster's position correctly? If you're past the grace perid, they don't charge you a "late" fee, they charge you a "restocking" fee. But a fee is a fee is a fee.

        Go gettem, New Jersey Attorney General Peter Harvey!!

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        • #5
          Fah, anybody who bothers to read the stupid sign at Blockbuster knows what Blockbuster is doing. I guess the fine folks at the NJ AG office didn't bother (or care to) check out the details.

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          • #6
            An AG looking to make a name for himself in the national media.

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            • #7
              "No late fees" is very misleading though when it is not exactly true...they should have phrased it differently.
              Speaking of Erith:

              "It's not twinned with anywhere, but it does have a suicide pact with Dagenham" - Linda Smith

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              • #8
                From what I understand, there aren't any fees... if you don't return it, they mark at sold (at "previously viewed" price if it applies) and you have a month to return it for your money back.
                Rethink Refuse Reduce Reuse

                Do It Ourselves

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                • #9
                  Originally posted by Zkribbler
                  Do I understand Blockbuster's position correctly? If you're past the grace perid, they don't charge you a "late" fee, they charge you a "restocking" fee. But a fee is a fee is a fee.

                  If they are charging restocking fees in addition, that still is quite different from a late fee. A late fee keeps adding up untill you return it, a restocking fee is for replacing the video which you have "bought" by not returning it.... what do people think, that you can check out a movie and never have to return it, basically buying videos for $2 (or whatever the hell they charge)?
                  Rethink Refuse Reduce Reuse

                  Do It Ourselves

                  Comment


                  • #10
                    Originally posted by General Ludd
                    what do people think, that you can check out a movie and never have to return it, basically buying videos for $2 (or whatever the hell they charge)?
                    Apparently people from NJ are that stupid.
                    I make no bones about my moral support for [terrorist] organizations. - chegitz guevara
                    For those who aspire to live in a high cost, high tax, big government place, our nation and the world offers plenty of options. Vermont, Canada and Venezuela all offer you the opportunity to live in the socialist, big government paradise you long for. –Senator Rubio

                    Comment


                    • #11
                      ... and LA.

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                      • #12
                        Originally posted by asleepathewheel
                        An AG looking to make a name for himself in the national media.
                        Apparently the NJ Attorney General juuust beat three or four other state's AG in filing against Blockbuster for advertising fraud. I'm sure by the end of it, most states will be doing so.
                        “I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
                        - John 13:34-35 (NRSV)

                        Comment


                        • #13
                          Originally posted by Provost Harrison
                          "No late fees" is very misleading though when it is not exactly true...they should have phrased it differently.
                          Yes, the should have said, "Read my lips: No new late fees."
                          “As a lifelong member of the Columbia Business School community, I adhere to the principles of truth, integrity, and respect. I will not lie, cheat, steal, or tolerate those who do.”
                          "Capitalism ho!"

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                          • #14
                            **shrug** I'm not surprised about strings being attached. Heh. There was enough "fine print" in the commercials I read and saw to know that "No Late Fees" was just a marketing ploy, nothing more.

                            Gatekeeper
                            "I may not agree with what you have to say, but I'll die defending your right to say it." — Voltaire

                            "Wheresoever you go, go with all your heart." — Confucius

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                            • #15
                              I use hollywood video

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