Block-busted: “No Late Fees” Challenged

Block-busted: “No Late Fees” Challenged

As you may recall, when Blockbuster announced “the end of late fees,” your industry-savvy Uncle Mark was not fooled one bit. Up front, they’re showing ads promising cheering crowds that the days of late fees are over.

The ads do not, however, clarify that:

– if you keep the tape longer than a week, Blockbuster will charge your credit card the full retail price of the tape, less your rental fee. (That’s far more than you’d usually pay in late fees … and often far more than you’d spend to buy a used copy of the tape!)

– if you return the tape after that week, Blockbuster will refund the purchase price … less a “restocking fee” of up to $4.50. (Did you get that? It’s not a late fee, folks. It’s a restocking fee. Umm hmm.)

– not all stores are participating in the promotion … so not every Blockbuster honors the deal.

The New Jersey Attorney General announced late last week that the state is suing Blockbuster for deceptive and fraudulent advertising. Good for them.

So far, Blockbuster’s Karen Raskopf has said little more than, “We believe the end of late fees program is a terrific program.”

And it is — for Blockbuster, which gets to crow about eliminating one kind of fee … while instituting two others!

As you may recall, when Blockbuster announced “the end of late fees,” your industry-savvy Uncle Mark was not fooled one bit. Up front, they’re showing ads promising cheering crowds that the days of late fees are over.

The ads do not, however, clarify that:

– if you keep the tape longer than a week, Blockbuster will charge your credit card the full retail price of the tape, less your rental fee. (That’s far more than you’d usually pay in late fees … and often far more than you’d spend to buy a used copy of the tape!)

– if you return the tape after that week, Blockbuster will refund the purchase price … less a “restocking fee” of up to $4.50. (Did you get that? It’s not a late fee, folks. It’s a restocking fee. Umm hmm.)

– not all stores are participating in the promotion … so not every Blockbuster honors the deal.

The New Jersey Attorney General announced late last week that the state is suing Blockbuster for deceptive and fraudulent advertising. Good for them.

So far, Blockbuster’s Karen Raskopf has said little more than, “We believe the end of late fees program is a terrific program.”

And it is — for Blockbuster, which gets to crow about eliminating one kind of fee … while instituting two others!

Mark McElroy

I'm a husband, mystic, writer, media producer, creative director, tinkerer, blogger, reader, gadget lover, and pizza fiend.

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Who Wrote This?

Mark McElroy

I'm a husband, mystic, writer, media producer, creative director, tinkerer, blogger, reader, gadget lover, and pizza fiend.

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