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Blockbuster Sued Over Late Fees Claim

DesiVideoGamer writes "CNN has a story about Blockbuster's violation of New Jersey's consumer fraud act in which they made false claims in their "No More Late Fees" campaign. New Jersey Attorney General Peter Harvey filed a lawsuit today in hopes that Blockbuster would stop misleading their customers into thinking they could keep their movie rentals as long as they want without penalty."

104 of 650 comments (clear)

  1. Price Point by Klar · · Score: 5, Insightful

    These services seem like good deals on the outside, but when you really look at the prices they charge, better deals can be found elsewhere. I'd like to see a decline in the high priced rental stores like Blockbuster, and a move to lower priced store with good selection. In my town, there are several small convenience stores that do very good business renting DVD's for cheap prices($2 Canadian after tax compared to the $6ish the Blockbuster charges). One store in particular always has many copies of all the new movies, plus tons of older ones. Plus, having the movies at a convenience store gives the added benefit of a large variety of snack foods to fill up on.

    1. Re:Price Point by Mark_MF-WN · · Score: 5, Interesting
      How about a move away from censorship? I stopped going to Blockbuster and Rogers Video after I found out that they perform their own censoring and scene-removal on films.

      It's bad enough that the movie industry waters everything down into mindless pap without the video store trying to decide what I should and shouldn't view.

    2. Re:Price Point by Eil · · Score: 2, Informative


      I have to agree. Most people never think to shop around for video rentals, but you'd be surprised what kind of value you can find just looking around. My wife and I got tired of Blockbuster's steep prices, short rental periods, and constantly out-of-stock new releases. So we tried Hollywood Video; same crap, different store. Finally, we ended up renting from a place called Family Video. Their rentals are only $2 and they never run out of new releases. They're a really decent chain, give them a shot if they're in your area. (BTW, of the three, they're also the only ones with a pr0n room. ;)

    3. Re:Price Point by Jah-Wren+Ryel · · Score: 3, Insightful

      I stopped going to Blockbuster and Rogers Video after I found out that they perform their own censoring and scene-removal on films.

      Well, you are pretty stupid then because they don't do that.

      The worst Blockbuster has done is refuse to carry NC-17/unrated versions and thus put pressure for the studios to release R-rated cuts. IN the last year or two, that policy seems to have ended as I've seen a number of NC-17 and unrated DVDs are corporate owned blockbusters, including "The Dreamers" and "Y Tu Mama Tambien" as well as more mainstream flicks like, "American Wedding Unrated," etc.

      Having never heard of Rogers Video I'm sure their miniscule presence in the rental market means that they don't have the resources to make their own cuts and they aren't big enough to really put any pressure on the studios either.

      --
      When information is power, privacy is freedom.
    4. Re:Price Point by siliconjunkie · · Score: 5, Insightful

      I stopped going to Blockbuster and Rogers Video after I found out that they perform their own censoring and scene-removal on films.

      Blockbuster does not actually censor the films themselves, but they are a powerful player and have exerted their influence in order to get directors to release "R" version of certain films rather than the "NC-17" unedited cut.

      However, I think you are wrong about Rogers. The Rogers Video on Lonsdale in North Vancouver has an adult video room with full fledged porn, so I'm fairly certain they are not cutting scenes from "Boogie Nights"

    5. Re:Price Point by Jah-Wren+Ryel · · Score: 3, Informative

      Rogers Video is the largest movie rental company in Canada

      That still makes them teeny-tiny compared to the big boys, they have less than 300 stores - BBV has about 7500 and Hollywood Video has about 2000.

      Even including their cable franchaise they have all the leverage of a spec of lint.

      --
      When information is power, privacy is freedom.
    6. Re:Price Point by Jah-Wren+Ryel · · Score: 2, Informative

      If what you say is the case, you should be able to find some substantive supporting evidence on the net, something better than anecdotes from ACs. Go ahead and post it.

      Meanwhile:
      There had been reports of Blockbuster doing its own internal censorship which are apparently false.
      http://www.everything2.com/index.pl?node=Blockbu st er

      "Blockbuster Video has no plans to carry these products," said Blockbuster spokesman Blake Lugash. "We don't edit or censor any of the films we carry in our store and we try to carry the theatrical versions."
      http://www.wired.com/news/print/0,1294,54759,00. ht ml

      Question: Does BLOCKBUSTER censor its movies?
      Answer:
      We do not edit or otherwise alter movies ourselves. We leave the methodology as to how ratings are applied specifically and completely to the studios involved. We are retailers and not members of the MPAA (Motion Picture Association of America), so we take no position on individual scenes or the overall artistic merits of a film. We are not in the content business.

      http://blockbuster.custhelp.com/cgi-bin/blockbus te r.cfg/php/enduser/std_adp.php?p_faqid=239

      --
      When information is power, privacy is freedom.
    7. Re:Price Point by Jah-Wren+Ryel · · Score: 5, Insightful

      That's not true. Just proclaiming that don't doesn't make it so.

      You do realize the irony in your statement, right? I spent 10 minutes in google and google grou[s looking for supporting evidence of your claim about "Black Sheep" and not find a single mention of it.

      Did you compare the video of the Black Sheep you rented from Blockbuster with one from another source? Changes between the theaterical release to the official home video release happen all the time. For example, see Terminator 3 -- the widescreen DVD is missing boobies that were shown in the theater and are, oddly enough, on the fullscreen version (and it ain't open matte). But it doesn't matter if you got your DVD of T3 from BBV or Amazon, they are all the same content.

      So far lots of hearsay, but zero supporting evidence for the "censorship happens" side. This is an old urban legend that most likely is the result of confusing Wal-Mart's getting specially edited versions of music CDs and using guilt by association to apply the same reasoning to BBV's DVDs (BTW, while Wally World may still do this with the occasionally ultra-popular but 'offensive' CD, they have never done it with DVDs.)

      As I've purchased over 500 used DVDs from Blockbuster since 2000 I have just a little more knowledge of this topic than most.

      --
      When information is power, privacy is freedom.
    8. Re:Price Point by screwballicus · · Score: 5, Insightful

      For that matter, as far as movies go, call me crazy, but what ever happened to the public library? At present, if I want to watch any of hundreds of major titles, aside from Blockbuster and the rental chains, I have the option of taking it out from [i]either[/i] the downtown Toronto Public Library or the University of Toronto's A/V centre. How available a wide array of DVDs are through public channels will depend on where you are, no doubt, but here they're readily available.

    9. Re:Price Point by rikkards · · Score: 2, Interesting

      Um. Most movies try not to get the NC-17 rating. It is the kiss of death as it means when the movie is released to the theatres a large demographic is not supposed to see it (barring sneaking in to the theatre). Seems like the sweet spot in ratings is about PG-13; not too low in the ratings to look like a Disney film and not too high to block potential viewers from seeing it. If there is anyone who is being swayed in releasing an R rating rather than NC-17 it would be the Producer.

      However, Blockbuster has said that they do not carry X rated films not for a moral reason but because they are making enough money without carrying them that the hassle isn't worth it (iow it probably wouldn't improve their revenue stream enough to redesign all their stores to include the movies and pissed off parents when little Johnny wanders in there because they weren't watching their brat.

      In general I prefer Blockbuster over Rogers as they have a tendency now to carry more widescreen movies, and a lot of the movies are the Director's cut so they contain stuff that was cut for various reasons from the theatrical release (i.e time, raciness) although it may be different in the states.

    10. Re:Price Point by pnewhook · · Score: 2, Insightful
      Have you also compared a DVD rented from another source? Or purchased? If not, you're accusing Blockbuster when they likely have had nothing to do with it.

      Well the fact that I'm forced (they disable the menu button) to sit through 5 minutes of advertisements for other recent releases on a Blockbuster rental proves that they do some modification to the film and it is not the same as a purchased DVD.

      Since they do that there is no guarantee that the content of the film isn't modified either.

      --
      Tesla was a genius. Edison however was a overrated hack who liked to torture puppies.
    11. Re:Price Point by pnewhook · · Score: 2, Insightful
      You don't buy many DVDs do you? Forced previews have become all too common and it is not at all confined to rental DVDs - you get it on regular store-bought versions too - because they are THE SAME. Disney, especially, is notorious for doing it but they are far from alone in the practice.

      I'm not a crazy collector but I do have a fair number of DVD's that I've bought. The only ones that I remember with advertisements have been the Disney ones.

      Could be because I'm in Canada and we have our own manufacturers and distributors. They simply may not put the advertisements on, whereas Blockbuster movies with ads probably all get shipped from the U.S.

      Interestingly, I just happened to have 3 Blockbuster rentals with me. The two that look like they come from U.S. distributors have forced commercials, while the one with a Canadian distributor goes right to the menu. May be a coincidence, but maybe not.

      --
      Tesla was a genius. Edison however was a overrated hack who liked to torture puppies.
    12. Re:Price Point by the_ed_dawg · · Score: 2, Interesting
      I'd like to see a decline in the high priced rental stores like Blockbuster, and a move to lower priced store with good selection.
      Blockbuster actually ran a test marketing campaign in my area (Lafayette, IN) where they allowed one night rentals for $2.00 on new releases and $1.00 on older movies. My wife and I were renting movies all the time because we always watch the movie the first night. Basically, it was like they dropped the price by half. When I went in after Christmas (after the no late fees campaign), they had upped the rental price to $3.50/$2.00. I spoke with the manager, who said that people in our area would rather avoid late fees than have cheap movies. Ironically, I haven't rented a movie from Blockbuster since then.

      In 1999, I had a summer job at Blockbuster (and have been missing small chunks of my soul since). About one in three people have late fees on their account at any given time. We would call about 50 people a day who had multiple movies 3 days or more overdue. While I agree with you that Blockbuster's prices are outrageous, a large portion of their rental base are too busy (or lazy) to bring their movies back on time. The responsible people can go to the grocery store next door to rent videos. :)

      --
      There are two types of people: those prepared for the zombie apocalypse and those who will be eaten.
    13. Re:Price Point by hawk · · Score: 3, Funny

      And you forgot to due the currency conversion. That 300 is like 219 in American :)

      hawk

    14. Re:Price Point by hawk · · Score: 3, Funny

      So "Family Video" means that they have "how to get one" tapes? :)

      hawk

  2. Gasp! by Anonymous Coward · · Score: 5, Funny

    An advertiser using borderline misleading statements in order to sell a product or service? I'm shocked, SHOCKED!

    By the way, what, exactly, does this have to do with my rights online?

    1. Re:Gasp! by critter_hunter · · Score: 2, Interesting

      They're not just making "borderline misleading statements" though. They are burying the information about the late fees very deep indeed (at least in the online advertisement). The initial Flash ad does not have any "certain condition applies" warning or somesuch - if you follow the "click here for more info" link, you get a customer service contact form and a link to their FAQ. The FAQ does contain a link to information pertaining to the restocking fee, but a) it is badly placed (it's the last question in the list) and b) there is another entry placed much higher in the FAQ that appears to answer the question ("Aren't you worried that you won't have enough movies and games if everyone keeps their rentals longer?") but does not contain any valuable information. That FAQ entry then contains a "related link" to the correct FAQ entry: "What if I return an in-store movie or game rental seven days or more past the due date"? That FAQ entry is definitely not clearly worded - for one, I have no idea how much a "restocking fee" is supposed to be.

      Seriously, I think it's a good PR move by blockbuster to remove the late fees, and I like that system (I think... I'd have to see what the fees for a 7 days late film is first), but the way they are advertising it is quite deliberately misleading and entirely deserving of prosecution

      --
      Karma: Could be worse (could be raining)
    2. Re:Gasp! by shokk · · Score: 2, Informative

      Gee, they only have the information for the new service at the counter. It clearly says in FAQ format that if you keep the movie for 8 days past the due date that you have purchased the movie. If you're too irresponsible to return a movie before 8 days are up, you should get into their Freedom Pass which will be cheaper in the long run than buy every movie you decided to view but didn't have time to actually view.

      With enough people in my family watching movies, I only watch a movie once a week, but we are constantly cycling movies in and out of Blockbuster on just the 2-movie pass.

      --
      "Beware of he who would deny you access to information, for in his heart, he dreams himself your master."
    3. Re:Gasp! by drooling-dog · · Score: 2, Insightful

      Yes, please stop questioning our Benevolent Corporate Overlords. Don't you realize that Welfare Mothers are driving Cadillacs?

  3. Why do we need a lawsuit? by ravenspear · · Score: 5, Insightful

    I mean if people today are so dumb that they think Blockbuster's commercials meant they could just keep rental movies forever then we have reached a new level of stupidity not equaled in quite a while.

    1. Re:Why do we need a lawsuit? by timeOday · · Score: 4, Insightful
      With netflix you can... can't you?

      I think keeping a deposit equal to the max number of rentals for an account, and doing away with due dates, is a pretty good idea.

    2. Re:Why do we need a lawsuit? by BrynM · · Score: 5, Informative
      With netflix you can... can't you?
      Yes you can. I had one rental for three months. Not a peep or complaint from them - I did pay my usual monthly charge though. This is major benefit of the Netflix business model. They did the accounting and see that if I pay the monthly fee, who cares how long I have the movie. I can only have three at a time, but if I want to hold onto one until I want to see it I can.
      --
      US Democracy:The best person for the job (among These pre-selected choices...)
    3. Re:Why do we need a lawsuit? by anethema · · Score: 2, Informative

      This is totally and utterly false.

      You have your normal free account, and there are no more late fees. That's it. (if you keep more than 7 days past the return time, there is a restocking fee, but its a buck 25, who cares).

      --


      It's easier to fight for one's principles than to live up to them.
    4. Re:Why do we need a lawsuit? by zakezuke · · Score: 2, Interesting

      I mean if people today are so dumb that they think Blockbuster's commercials meant they could just keep rental movies forever then we have reached a new level of stupidity not equaled in quite a while.

      Why? Baskin and Robins claims free ice cream on halloween, and you do get free ice cream. Many resturants claim free refills on coffee and sure enough they have free refills. I get free coffee at rest areas on the highway. Even those cheesy some see our property and get a free gift adverts after listening to the morons for hours do give you a cheepo free gift but always one of the three that are listed.

      So why shouldn't someone believe "no more late fees" when clearly advertised as such?

      --
      There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.
    5. Re:Why do we need a lawsuit? by ShamusYoung · · Score: 2, Insightful
      I think keeping a deposit equal to the max number of rentals for an account, and doing away with due dates, is a pretty good idea.

      I agree (I love Netflix!), although it isn't as simple for them as just eliminating the fees.

      New releases cause a huge problem for brick-and-mortar rental places. In the store owner's perfect world, you have one copy each of 2,000 movies, and every night people come in and get the movies they want and leave. But 99% of your customers don't want on of your 2,000 movies. They want one of the three that just came out this week.

      Everyone wants to rent the latest movie on a Friday night, and then return it whenever they get around to it. So, when the latest Spielberg hits the shelves, you need to MAKE SURE you have a copy for everyone. People expect to be able to get the latest movies, and will get very pissed if you tell them you're out.

      Tonight, you need twenty copies of the latest movie. If you get those twenty back by tomorrow night you can rent them out again. If not, you need twenty more. The problem can get pretty out of control if you let people take the just-released title and keep it for a month. Then instead of twenty copies you need huge numbers of them.

      But next month nobody will care. You'll only need two copies, and you need to do something with those exta movies. They cost a lot. It costs a lot to store (storage space is precious!) and ship all those extra copies, and now nobody wants them and you're stuck with them. What's worse, those movies didn't really make you any more money. Having twice as many movies doesn't mean you rented it out twice as often, but instead they kept it twice as long. (Actually, most people returned it in a few days and a few absent-minded jerks like me held onto it for four times as long, but anyway...)

      The point is, longer rental times exacerbates the problem outlined above. Netflix gets around this by just making you wait for the latest release, which for whatever reason doesn't bother me. When I see "Long Wait" on Kill Bill 2 in Netflix, I shrug and the next movie in my Queue comes. When I go to the rental store and see 20 empty Kill Bill 2 cases and no copies left for me, I get annoyed. Go figure.

      --
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    6. Re:Why do we need a lawsuit? by britneys+9th+husband · · Score: 3, Interesting

      As long as you're happy with Netfilx (i.e. you don't cancel or something) they would rather you keep movies out longer. Otherwise they end up signing over all their profits to the USPS.

      --
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    7. Re:Why do we need a lawsuit? by Citizen+of+Earth · · Score: 3, Insightful

      (if you keep more than 7 days past the return time, there is a restocking fee, but its a buck 25, who cares)

      Um, that's the new late fee.

    8. Re:Why do we need a lawsuit? by anthony_dipierro · · Score: 4, Interesting

      If we've reached the point where a company can advertise the end of late fees when it actually charges a late fee (just calls it a restocking fee), all without being subject to a lawsuit, then we have reached a new level of stupidity in the legal system.

      I'm sorry, I'm a big believer that some of the disclaimers we require are ridiculous, but saying you don't charge late fees when you do is just wrong.

    9. Re:Why do we need a lawsuit? by timeOday · · Score: 2, Interesting
      It's a bit hard for me to sympathize when I can pop a $0.49 blank into a $69 writer and make my own DVD any day of the week.

      I'm not actually advocating Blockbuster burning its own CDs, just pointing out that the physical media itself is extremely cheap. (So cheap that DIVX tried to make a business of "renting" by selling self-destructing discs.) If people are leaving the video store empty-handed (or with a $0.99 old release), both the rental store and the studios are losing money. If the studios' pricing scheme to rental stores is causing this situation, both would profit by fixing it.

  4. Phone reminders by Brian+Brian · · Score: 5, Interesting

    My local Blockbuster kept calling multiple times a day when I decided to press the new policy. By shear nagging alone I gladly returned the movie.

    1. Re:Phone reminders by andy@petdance.com · · Score: 4, Funny
      By shear nagging alone I gladly returned the movie.

      I also would return the movie if someone was coming after me with scissors.

  5. Well... by Anonymous Coward · · Score: 5, Funny

    Fuck, I'm just glad they got rid of those commercials with the hamster and the rabbit. Fraud is nothing compared to how annoying those lil' fuckers were.

    1. Re:Well... by soft_guy · · Score: 4, Funny

      Those ads are gone? They played a major role in my decision to cancel my subscription to cable and not watch TV anymore.

      --
      Avoid Missing Ball for High Score
    2. Re:Well... by irokitt · · Score: 3, Funny

      Believe me, don't renew. There's this one commercial with ... Oh hell, I don't want to cause you that kind of pain.

      --
      If my answers frighten you, stop asking scary questions.
  6. a way to purchase? by tsioc · · Score: 4, Insightful

    I'm thinking that if they priced it right, this could be one way to sell dvd's and games. You can rent all you want, if you like it, keep it.

  7. Truth in advertising by Mistlefoot · · Score: 4, Insightful

    Let's see.

    I can get a free cell phone almost anywhere. 3 years and $2000 later it's paid for.

    I can buy a car at 0% interest....but if I pay cash it's $$$thousands$$$ less than if I do credit.

    How come none of these advertisers are sued? Does the government really need to protect me against the cost of a DVD because I didn't read the fine print while ignoring far larger issues?

    1. Re:Truth in advertising by Zakabog · · Score: 2, Insightful

      I can get a free cell phone almost anywhere. 3 years and $2000 later it's paid for.

      Because those ads tell you there's a contract required (usually just a 1 year contract, but hey the phone IS free, the service isn't.

      I can buy a car at 0% interest....but if I pay cash it's $$$thousands$$$ less than if I do credit.

      I'm going to assume that's because the car dealership is taking off the amount of money they'd be charged by the bank. Or they're giving you a discount equal to what you would have paid in interest so when they give you the total price it looks like 0% interest. And car dealerships always love cash because that means all the money from the sale is going to them and not partly to a bank over a period of 5 years (or at least that's my theory, although I do know for a fact that they love cash.)

      The way Blockbuster is advertising, you'd think you could keep a movie forever, and as long as you never try to rent another movie, will never be forced to pay anything or bring the movie back (I'm sure they'd call you and ask for it back though.) They could of just said "Now, rent the movie for 7 days!" with the fine print "After 7th day customer will be charged retail price for rental."

    2. Re:Truth in advertising by barc0001 · · Score: 4, Insightful

      Depends on the car company, and when you buy. I got a 0% loan on a 2004 model car when they were trying to offload them because the 2005s were coming in a month. I negotiated the sale price first, then we talked financing. The final price never changed, regardless of if I was to buy it outright, do a large down payment, or nothing up front. So I opted for nothing up front, 0% over 5 years (they wouldn't go for six, dammit!) and that was that.
      I think they were a little shell shocked by how quickly I nailed everything down finances-wise because they tried to sell me on a stereo upgrade for "only $17 a month". Hmmm. $17 a month x 60 months. $1020 for an "upgrade"... I'm thinking.... no.

    3. Re:Truth in advertising by anthony_dipierro · · Score: 2, Insightful

      Does the government really need to protect me against the cost of a DVD because I didn't read the fine print while ignoring far larger issues?

      So where do you draw the line? Can an advertiser just advertise anything they want? Before this lawsuit even came up I myself commented on that commercial several times. Blockbusted does charge late fees. They just call it a "restocking fee". It's exactly the same as a late fee.

      To say that this is equivalent to a commercial for a free cell phone with cell phone service is not at all reasonable. First of all, as has been pointed out, a commercial advertising free cell phones will say that a service contract is required. Secondly, it is a common practice to offer a free product with the purchase of another. I just don't think the two are equivalent. If blockbusted advertised "NO LATE FEES when you buy the movie" then it'd be much less of a problem, and probably legal.

      I can buy a car at 0% interest....but if I pay cash it's $$$thousands$$$ less than if I do credit.

      Are you talking about getting thousands less through negotiation, or through an incentive program? In any case, it's only the same if the company actually charged you interest (but just called it a "money loan fee" or something). Is the reduced price of the car in the advertising? If not, then you can't really complain. If blockbusted actually offered no late fees, but just charged $25 for the DVD rental I don't see a problem, since they didn't advertise the price. But that's not what they've done. The deal is you rent the movie, and if you don't return it, then they charge you for it. Then, if you decide to return it after they charged you for it, they charge you a "restocking fee". How is that any different from a late fee? How is it any different from the usual process blockbuster uses? The only difference is they've extended the time before they charge the late fee.

  8. Re:Well, it is worse-- by aztektum · · Score: 4, Insightful

    You're telling me that you can take the time to browse their selection, wait in line to check out and sit on the movie anywhere from 14 to 44 days, but you can't find 5 seconds in that time to slip it back in their drop box?

    --
    :: aztek ::
    No sig for you!!
  9. Re:Well, it is worse-- by yamla · · Score: 2, Interesting

    Right... because it only takes five seconds to drive to the appropriate Blockbuster store and return it.

    --

    Oceania has always been at war with Eastasia.
  10. Oh really? by FireballX301 · · Score: 2, Insightful

    Yes, it IS a news-flash, you CANNOT keep movies you've rented, forever.

    But since when have advertising campaigns been free of ambiguity and deceit?

  11. Re:Well, it is worse-- by anethema · · Score: 4, Insightful

    I'm really confused, what's your problem? People like you are gonna ruin this great deal for the rest of us.

    You can keep the movie for 7 days in ADDITION to the normal rental time of the movie. Then, after that seven days, you have 30 days (from the orignal rental date) to return it only beeing charged 1.25$ restocking fee.

    Before this, you kept the movies for their rental times then the big late charges piled up. For the price of keeping it one day, you've already got more fees on your account than keeping it up to one month with the new system.

    How much do you think you'd pay for a movie keeping a new release 30 days with the old system? I bet it would be more than the movie is worth and you'd still have to return it. Now if you keep it that long, you've payed and you now own the movie.

    How you got +(x) informative for saying yuck to a deal that charges you signifigantly less money with no catches is beyond me.

    --


    It's easier to fight for one's principles than to live up to them.
  12. Re:Well, it is worse-- by DAldredge · · Score: 5, Insightful

    The problem is the damn ads say NO LATE FEES...

  13. The Blockbuster Plan from the horse's mouth! by MadWicKdWire · · Score: 5, Insightful

    When I was at Blockbuster recently, the customer in front of me asked about the "the end of late fees". This is exactly what the employee told the customer, word for word...

    "This lets you keep the rental for a couple of days extra, just to allow you extra time."

    That was pretty much about it, nothing about the restocking fee, which was just appeared on their price list one day. Nothing about after 30 days, we charge your credit card on file for the rental value of the rental.

    The reason for the lawsuit is simple... they changed the way they do their rentals, because they suspect that you could accidentally forget aobut the rental and then keep it too long, but then since they will debit your credit card, by the time you find out, it's too late.

    Now, here is the problem, you were NEVER told about the restocking fee or the 30 days late we charge you. That is down right wrong. They should tell you EXACTLY what will happen. Even in the commerical, there are no little words at the bottom of the screen or some crazy fast talking guy.

    It's riding VERY close on false advertising, but it is the end of late fees... they just have restocking fees and purchase charges!

    THANK [Fill in god of your choice] FOR NETFLIX!!!

    --
    Sig (appended to the end of comments you post, 120 chars)... oops
    1. Re:The Blockbuster Plan from the horse's mouth! by anthony_dipierro · · Score: 2, Informative

      Regardless of what you were told by the guy on the phone, or what you thought the TV ads meant, it is your legal responsibility to abide by the rental contract, the terms of which are available at any Blockbuster.

      Well, you probably won't get the movie to keep forever, but the guy on the phone still committed fraud as an agent of Blockbuster, and you could sue Blockbuster (respondeat superior) for any damages you suffered due to that fraud. Which basically means, once they charge you for the movie and you return it, you could get out of the restocking fee. If they won't let you (and since they're currently being sued they probably will), then just call your credit card company and reverse the charges.

    2. Re:The Blockbuster Plan from the horse's mouth! by LogicX · · Score: 2, Informative

      My best friend works at BlockBuster, and I was hanging out when they were getting all their corporate propaganda for the new No Late Fees, and they actually have a little handbook that says 'Customer says X, you say Y' -- and there are about 3-4 levels of the customer having to ask for details before they're supposed to hand them over. They're supposed to give as ambiguous and non-informative answers as possible until the customer practically gets irate.

      --
      May this post be indexed by spiders, and archived for all to see as my Internet epitaph.
  14. Re:Well, it is worse-- by OverlordQ · · Score: 2, Informative
    No, he had it right you have it wrong:

    From blockbuster's site link:

    f you still have a movie or game seven (7) days after the due date shown on your receipt, we will convert your rental to a sale. The movie or game will be sold to you at the selling price in effect at the time of rental, which is either the retail price, or, when available, at the previously-rented selling price, less the initial rental fee you paid.
    --
    Your hair look like poop, Bob! - Wanker.
  15. Re:Another way by serith · · Score: 2, Interesting

    Netflix is garbage. With longer and longer turn around times on movies, your cost per disk is much higher than mine, seeing as how I can return my movies when I have time. And let's say I'd like to have a movie rampage and watch a stream of 007 movies the same day, that would be next to impossible using Netflix (which I used for well over a year, but just recently cancelled) with their 3-5 day overall turn around (unless you're a new customer.. funny how month to month subscribers rank lower and lower on their totum poll). Compare that to driving around the block and doing a quick exchange at Blockbuster, and I'll take that any day. And before you reply that Netflix has more titles, I'll tell you to save the bandwidth, because they do. That's why it's smart to have a blockbuster, AND a netflix account. BB for fast exchanges and new releases, and Netflix for the stuff BB doesn't have :)

  16. Re:Another way by OverlordQ · · Score: 2, Interesting
    From blockbuster's site:
    3 at a time - $14.99 for 1 month(s) plus applicable tax
    you will receive unlimited movies, up to 3 at one time plus two e-coupons/month for free in-store movie or game rentals.*
    5 at a time - $27.49 for 1 month(s) plus applicable tax
    you will receive unlimited movies, up to 5 at one time plus two e-coupons/month for free in-store movie or game rentals.*
    8 at a time - $37.49 for 1 month(s) plus applicable tax
    you will receive unlimited movies, up to 8 at one time plus two e-coupons/month for free in-store movie or game rentals.*


    So what was your point?
    --
    Your hair look like poop, Bob! - Wanker.
  17. Cable ISPs did the same thing by freeweed · · Score: 4, Interesting

    For years, they advertised, in large capital letters, UNLIMITED INTERNET ACCESS.

    After they oversold an insane amount, realized they were going to lose their shirts, they started introducing bandwidth caps. All while still advertising UNLIMITED INTERNET ACCESS.

    It's sad that we need lawsuits and regulations to deal with this sort of thing - but I'm sorry, don't advertise something in 100% plain english if you're not going to follow through.

    Blockbuster just rolled this campaign out in Canada, and I've been waiting to hear the catch. Call me a hopeless optimist, but NO MORE LATE FEES means, in English, that if I return a movie LATE, there will be NO FEE as a result of my returning it late. Looks like NO MORE LATE FEES just means DEFERRED LATE FEES.

    Morons. They deserve whatever they get. This is about as ethical as advertising $25 cars - with small print explaining that there is a $25,000 processing fee.

    --
    Endless arguments over trivial contradictions in books written by ignorant savages to explain thunder in the dark.
    1. Re:Cable ISPs did the same thing by Anonymous Coward · · Score: 2, Interesting

      I used to work for Shaw, and that was the explanation we would give to people. Unlimited connection time, not unlimited bandwidth.

      Really, there was no hard usage cap either. All they would do, is evey month run a query to find out the top abusers of the system (too much upload). Then they'd give those people a call, and notify them that they're using too much bandwidth. You'd get a few warnings, then after they've contacted you several times, they'll force you to either upgrade to a business package or cancel the service.

      That all seems pretty reasonable to me. Sometimes, customers would call and bitch about it, but really, do you expect to be able to upload 100+ GB a month for CDN $40? Shaw wasn't even concerned about how much you download, only upload. If you're using that much bandwidth, you're definitely abusing the service, and bogging down the system for other users.

      99.9% of customers won't hear from the "bandwidth cops", and I really didn't have much sympathy for those who did.

  18. Re:Well, it is worse-- by Drakonite · · Score: 2, Interesting
    Yeah, because my two to six rentals every couple months are really worth the cost of the subscription fee... Especially since they are spur of the moment stuff, I don't plan 3-5 days in advance when I'm going to feel bored and want to grab a movie, or more often a game, for that night or the next few days. In order for it to be worth it, you'd have to order at least 4 movies a month and pretty much always have one laying around from them... I know lots of people do that, but there are a lot more that wouldn't simply because Hollywood doesn't make enough decent movies.

    Back on topic a bit.. the real point is they are doing far more than creative wording in their new ads, they are lieing to the customer, which is both immoral and illegal... I think hollywood video will be the ones who have the privilege of ripping me off on game rentals from now on.

    --
    Shoot Pixels, Not People!
  19. Re:Two Words by B3ryllium · · Score: 2, Funny

    At Blockbuster, $20 in late fees can mean only one thing.

    You're not trying hard enough. :)

  20. and another important point: by antimatt · · Score: 4, Informative

    The no-late-fee policy only applies necessarily to corporately owned stores; the privately owned ones are not required by Blockbuster Inc. to honor the new system. Mind you, some are, but it is voluntary on the part of the respective owners.

    1. Re:and another important point: by JWW · · Score: 3, Interesting

      My store did that too. I told them I would never return. Now I'm not a really big renter, but they are out $ 40 so far.

      According to the manager of the store, I was supposed to ask if they were participating. They had no signs anywhere stating this fact. I bet they made a killing on late fees in January here. I bet they made a lot less money so far this month.

      This was pure bait and switch. The consumer relates the local franchise to the main corporation (thats the idea of franchises!!!). So consumers had every right to think their blockbuster would be participating. Of course they're right about it being their choice. But, how many times has McDonalds had a promotion and the one you go to is not participating? I can't think of one time a food franchise in my town has ever not participated in a corporate promotion.

      Anyway, they've lost my business forever.

  21. Own it on DVD Today! by renehollan · · Score: 5, Funny
    "You're under arrest!!"

    "WTF? For what??"

    "Criminal Copyright Infringement!!"

    "Huh?"

    "You posted millions of copies of Star Wars III on the intarnat!"

    "Yeah... so?"

    "That's copyright infringment! You'ze goin down!!"

    "Ah, no. I own it."

    "???"

    "I own Star Wars III. I can do with it what I want."

    "Er, no. You may own the DVD, but not the movie. You're coming with us."

    "No, I own the movie. I followed the TV ad: 'Own it on DVD today!' By 'it', they mean the movie. So, I own the DVD, and what's on it, the movie."

    "Tell it to th' judge!"

    later...

    "Your honour, I own the movie. Look at the TV ad that caused me to buy it."

    "You have a copy of that ad?"

    "Sure, watch!"

    "GUILTY!"

    "WTF, er, I mean, why, your honour? I own the movie, no?"

    "The movie, yes. You're guilty of copyright infringement for showing me the ad that says you own the movie. You don't own the ad. Take him away!!"

    --
    You could've hired me.
    1. Re:Own it on DVD Today! by SamSim · · Score: 3, Funny

      (much later, in prison)

      "You don't understand! I'm George Lucas! I OWN the movie!!"

    2. Re:Own it on DVD Today! by NotoriousQ · · Score: 2, Interesting

      Next time, subpoena the ad.

      Thanks for the laugh.

      --
      badness 10000
  22. Finally by serenarae · · Score: 5, Informative

    I work for Blockbuster as a manager. I think it's about damned time someone started complaining. They've been engaging in deceptive business practices for years now. I'll outline this new policy for you guys:

    You have 7 days after the due date to get your movie back. This means, if it's due monday, get it back the following monday by NOON.

    If you fail to do this, you will get charged the retail price (unless it's been out for awhile) of the dvd, game, or vhs.

    Bring it back before 30 days (this is where they get really shady, because even I dont know if it's 30 days late or 30 dates after the 7 day thing), and you will get a full refund minus a $1.50 "restocking fee"
    This fee is supposedly charged to cover the cost of sending you a bajillion phone calls and postcards reminding you that your stuff is due. Mind you, there's a glitch in the system at the moment that will still call you even if your stuff has been returned. (I might also add that you should call us if you get that call and know you brought your stuff back. It may be on the shelf NOT checked in)

    If you don't bring it back before the 30 days, you are STUCK with the movie. Come in and get your cover art, you're entitled to it. There is no way you can get your money back after this point.

    So, ending this long reply. No matter what, unless you get your movie back within two weeks (most of the time), you're still getting charged.

    Hope this helped you out... I hate this company.

    --
    see sig. see sig run. run sig run.
    1. Re:Finally by Michael+Spencer+Jr. · · Score: 3, Informative

      I'd like to add to what you said. I work for a major credit card processor (First National Merchant Solutions), and according to Visa/Mastercard regulations, any of these full-retail-price charges could be charged back.

      Merchants are not allowed to use Visa/Mastercard for collections purposes. They can't charge you "punitive fines" without your approval and authorization.

      Here's an example: suppose you stay at a hotel. You agree to pay for your room stay, but while you're there you get drunk and trash the place, causing $500 in damages. You leave before anyone notices the damage, so nobody had a chance to bill you.

      The hotel owner decides to bill your Visa card for the amount of the damages. While it may be true that you owe the hotel owner $500, you never gave the hote owner permission to take that $500 from your Visa card. Because of that you can talk to your bank, tell them you didn't authorize the charge, and get the money back. (You can then go to jail for whatever crime you committed, or write a check for that same amount of money...but we're just talking about Visa/Mastercard's world here.)

      In this case, Blockbuster will try to argue that your signature on the rental agreement authorizes them to charge your card. For *this particular sale* though, when you left the store you understood you would be charged only a rental fee. I believe whatever authorization you gave on your contract doesn't actually protect them as much as they think it will.

      So if you charge back one of these charges from Blockbuster, you aren't saying "I don't really owe Blockbuster money", you're actually saying "I might or might not owe Blockbuster money, but either way, they do not have the right to take that money from my Visa/Mastercard account. Ask me to write a check or pay cash instead."

      If they bill you the cost of a game ($50.00), that costs them at least 75 cents in credit card processing fees, probably more. So they *have* to charge some kind of restocking fee, or else that "gentle reminder" when they charge your card will *cost* them money when you return the game.

      Above all else, though, keep this in mind: if someone charges your card for punitive damages or fines/fees you did not specifically agree to, you can file for a chargeback. Talk to your issuing bank.

      Understand the difference though:
      "You owe me $500 for tearing up your hotel room. Pay me now or I'm calling the police." --> "OK, fine, charge my card." -- in this case there was authorization, so no chargeback.

      Hope this helps!

      The opinions in this post are my own, and may or may not also reflect the opinions of my employer, First National Merchant Solutions. I did not actually have the phone-book-sized Visa/Mastercard regulations manuals in front of me when writing this, so I might be wrong. The "hotel" example came straight from our chargeback department, though, so I'm *very* sure the theory behind this post is correct. This is not banking advice -- your situation may vary, so talk to your own banker for situation-specific banking advice.

      --Michael Spencer
      Stop Code 3270
      First National Merchant Solutions
      1620 West Dodge
      Omaha, NE 68197

  23. it's not stupidity by Ka+D'Argo · · Score: 5, Insightful

    For those that say "to think you'd never have to return it", its not stupidity. Blockbuster specifically advertises on tv in prime time commercial slots NO LATE FEES, with no extra wording such as "Other details apply" or the ever lasting Read the Fine Print.

    Now with that in mind, if I actually used Blockbuster I would go in, and rent a new release movie for whatever X amount they charge. Now within common sense Blockbusters "NO LATE FEES" policy they have advertised, they CAN institute a policy that say within 30 days you must return the video, but within those 30 days you WILL NOT be charged late fees. And they could throw in some clause such as if the video is not returned, your account is forfiet. No late fees doesn't mean "keep forever" but it means that if you forget or just don't give a fuck like most common people when they rent a movie, you won't be penalized for it.

    Is that ok? No, of course not. People shouldn't automatically assume you can keep it forever after "Renting" it for $5. HOWEVER, Blockbuster is in the wrong here. They blatantly advertised NO LATE FEES. In their ads, they never mention you must sign up for some special monthy deal or pay a monthly fee, they just say NO LATE FEES. A nickel and dime lawyer could win this case of Faulty Advertisment in court quicker than OJ was aquited.

    --
    Aw Frell this
    1. Re:it's not stupidity by NormalVisual · · Score: 2, Insightful

      If you get charged, it's a RESTOCKING FEE to cover the price of shipping back the movie that they ordered to replace the one that your selfish ass kept for over a week past it's due date.

      Is there some kind of evidence you can point to as to what exactly the fee is covering? Unless you work in Blockbuster's corporate finance department, I don't think you can say with authority exactly *what* that fee pays for. I also don't imagine that after the 7 days is up, they automatically re-order another copy of whatever it is that you rented, especially if it's a low-demand item. They'd end up burying themselves in excess inventory if they did.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
  24. Comment removed by account_deleted · · Score: 4, Insightful

    Comment removed based on user account deletion

  25. I have never payed a late fee. by EvilGoodGuy · · Score: 2, Funny

    I just make sure to upload to at least 100% and I never have anyone ask me about returning my copy...

  26. Not surprising by jgarzik · · Score: 2, Interesting
    I blogged about this earlier today. Two key points:
    1. Claiming "no more late fees", especially in a big splashy ad campaign, and then charging you a fee 7 days later, is false advertising. Plain and simple. I'm with the state A.G. on that one. They deserve this lawsuit.
    2. BlockBuster makes serious revenue on late fees (or whatever name you wish to call them). Someone on another claimed that 40% of their revenue is late fees, though I did not check this. Anyway, BlockBuster is not going to just give up that huge stream of revenue.
    Claiming "no more late fees" was just a bone-headed idea. Hopefully B.B. will see that before too many Attorneys General look their way.
    1. Re:Not surprising by serenarae · · Score: 2

      Because I have a rather nasty case of insomnia, i'll just post all of this crap.

      Blockbuster makes most of their revenue off of rentals themselves, and surprise, used dvd's.

      late fees account for a very small percentage of revenue, which is why it was so easy for them to do away with them.

      --
      see sig. see sig run. run sig run.
  27. Re:A rant... by ColaMan · · Score: 5, Insightful

    If you're up to some fiddling, play DVD's on your PC with mplayer, or get a mythTV box going and (using it's internal DVD player/ripper module) jump straight to the movie, without the ads.

    Then, just for **extra spite value**, rip and compress it to your hard drive, so that every time you play it you can say, "Yeah! Take that Blockbuster, you FUCKERS!"

    That's what I do... and frankly, it feels good every time I do it.

    --

    You are in a twisty maze of processor lines, all alike.
    There is a lot of hype here.
  28. Sorry to break it to you... by Hamster+Lover · · Score: 4, Informative

    but you can FAST FORWARD through the commercials, if fact if you keep the FFWD pinned, so to speak, it only takes a moment to get to the main menu. I agree that it is utterly frustrating that you cannot "skip" the commercials, but not as bad as you make out. I have yet to see a DVD that does not permit fast forwarding through commercials, if that's even possible in the DVD standard.

    Note I have only viewed the Canadian version of Shrek 2, which contains both English and French audio tracks, so the American version might be different.

  29. Quote from Blockbuster's Website by DavidD_CA · · Score: 5, Informative
    Just out of curiosity, I went to Blockbuster's website to see what they would advertise.

    Sure enough, they have a huge banner ad saying "The end of late fees". There are no asterisks, fine print, or other disclaimers.

    However, if you click on the "Terms" button at the bottom of every page, you get a few pages of legal text such as their privacy policy, copyrights, terms regarding their Online Rentals, and .... terms on their In-Store Rentals. Lo and beyold:

    IN-STORE MOVIE AND GAME RENTAL TERMS. As of Jan. 1, 2005, movie and game rentals are due back at the date and time stated on the transaction receipt. There is no additional rental charge if a member keeps a rental item beyond the pre-paid rental period. However, if a member chooses to keep a rental item more than a week after the end of the rental period, Blockbuster will automatically convert the rental to a sale on the eighth day after the end of the rental period. Blockbuster will charge the membership account the selling price for the item in effect at the time of the rental, which is either (1) the retail price charged by that BLOCKBUSTER store for the product if sold as new, if the product is not available for sale as previously rented product at that BLOCKBUSTER store at the time of rental, or (2) the selling price charged by that BLOCKBUSTER store for the product if sold as previously rented product, if the product is available for sale as previously rented product at that BLOCKBUSTER store at the time of rental. The selling price will be discounted by the amount of the initial rental fee paid by the member at the time of rental. If the member returns the item within 30 days of the sale date, Blockbuster will credit back to the membership account the amount previously charged to the member's account or the member's credit card, as applicable, for the selling price of the item, but the member will be charged a restocking fee. All rental items must be returned to the proper BLOCKBUSTER store. These rental terms are subject to change without notice at any time. Participating stores only. Rental terms and policies may vary in franchised locations. Additional membership rules apply for rentals. See store for full details.
    --
    -David
  30. Re:Just Use Netflix by HardwareLust · · Score: 2, Insightful

    They suck now because they're just been completely overwhelmed by demand. The people at the top are too busy raking in the profits to worry about hiring enough people to give decent customer service, or expanding their distribution system. I quit because they were just getting slower and slower at checking it my returns and shipping new discs.

    Too bad, too. They had a hell of a company going at one time.

    --
    ...not that I'm a pirate.. Hell I've never even fired a cannon. - oldwolf13
  31. They've NEVER charged late fees! by tuxedobob · · Score: 2, Funny

    They just made you pay money if you didn't bring it back it time!

  32. Hopefully CREDIT CARDS are on the chopping block! by Viewsonic · · Score: 3, Interesting

    If there is ever a cause for a state to go after fraud, its after Credit Cards. All that fine print usually invalidates anything you can do.. Miss a bill on your car payment even tho its not on your credit card bill? They raise the rates to 25%.

  33. A fee by any other name... by Otto · · Score: 2, Insightful

    Did you actually believe that no late fees meant you could just keep the movie forever free of charge? A femtogram of common sense would have saved you this embarassment.

    Of course nobody thought that, but at the same time, they shouldn't say something in their ads that is clearly not true. Just changing the timeframe and renaming it to "restocking fee" doesn't change that it is, in fact, a late fee.

    Bring it back more than 7 days late and they charge you a late fee, no matter WTF they call it.

    --
    - Give a man a fire and he's warm for a day, but set him on fire and he's warm for the rest of his life.
  34. Re:Well, it is worse-- by CableModemSniper · · Score: 2, Insightful

    It has nothing to do with lazy consumers or anything like that. All they are saying is that there are no more late fees. And there aren't any more late fees.

    Furthermore, the new policy IS more forgiving. In the absolute worst case scenario you pay the price of the DVD after 37 days. (And if you come back before those 37 days are up, guess what its $1.25. That has to be better (more forgiving) that the old policy).

    Now, I don't recall excatly the pricing of Blockbuster's old policy, but I don't think they stopped charging you late fees after 37 days, or ever (until you returned the video). And I'm sure after 37 days of not returning said tape you would have easily paid for the tape and then some (Feel free to whip out some numbers here if you want). They said no more late fees, you get no more late fees. They aren't trying to pull the wool over your eyes, they ARE being more forgiving.

    --
    Why not fork?
  35. your rights online... by Cryptnotic · · Score: 3, Funny


    By the way, what, exactly, does this have to do with my rights online?


    You have the right to use Netflix, which doesn't suck.

    --
    My other first post is car post.
  36. Re:Well, it is worse-- by uberdave · · Score: 2, Informative

    New releases were only 2 day rentals last time I rented (back in August).

  37. Re:Well, it is worse-- by DarkEdgeX · · Score: 2, Informative

    Those of us in "reality" will stick with the notion that "no late fees" means "no cost, at all, under any circumstances, if you return your rental late". Now, if they'd said--

    "NO LATE FEES (but only if you bring it back within a week of the due date)"

    or even--

    "NO LATE FEES*

    *only if returned within a week of the due date"

    We wouldn't be where we are right now.

    If Pepsi says every person who buys a 2 litre bottle of soda gets a million dollars on 8/7/2005, they don't get to make all sorts of exceptions unless they advertise those exceptions. Businesses shouldn't advertise things unless they're willing to live up to their end of the bargain (which is where consumer protection laws, like those being enforced here, come into play). Otherwise businesses would just advertise anything to try and put their competitors out of business.

    "Oh hey, who needs to use NetFlix when going to the corner Blockbuster is so much easier, and cheaper now, I mean, it's not a big deal that I return 'Fried Green Tomatoes' a few weeks late! Whoohoo!"

    --
    All I know about Bush is I had a good job when Clinton was president.
  38. Explaining the policy by Repton · · Score: 4, Insightful

    Quote from TFA:

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

    The average customer doesn't get any special explaining... If they're judging an ad campaign, how can they judge it, save by looking only at the campaign?

    --
    Repton.
    They say that only an experienced wizard can do the tengu shuffle.
  39. When you say "work" by garwil · · Score: 5, Funny

    I think you meant to say "worked"

    Signed,

    Your Area Manager

    ;)

    --
    If ignorance is bliss, knock the smile off my face.
  40. Re:Well, it is worse-- by Motherfucking+Shit · · Score: 2, Insightful
    You're telling me that you can take the time to browse their selection, wait in line to check out and sit on the movie anywhere from 14 to 44 days, but you can't find 5 seconds in that time to slip it back in their drop box?
    I dunno. The ad that I saw on TV proclaimed "the end of late fees," to the point of unveiling a huge banner, and telling people "no more late fees." The ad featured a huge crowd of people rejoicing over the fact that there were no more late fees. The general idea was, "no more late fees." I don't see how anyone who saw the ad could have thought anything other than "hey, Blockbuster is eliminating late fees, kickass!"

    I never saw an ad that said "No more late fees as long as you return your rental within 3 days." I didn't see a commercial that said "Oh by the way, if you don't bring your movie back within a week, we'll charge you the retail price for that title." Nope. It was all about "no more late fees." That's what they advertised, and they aren't delivering.

    I'm not sure how the average consumer would see the ads other than the obvious interpretation. What I took from the ad campaign was that I don't have to pay a late fee, even if I can't find 5 seconds to return the video to Blockbuster. The ad campaign said no more late fees.

    If they're charging fees anyway, that seems rather gauche, and perhaps illegal. Don't you think?

    Maybe it's a good thing that I download instead of rent...
    --
    "BSD: Free as in speech. Linux: Free as in beer. Windows 10: Free as in herpes." --Man On Pink Corner in #52607549.
  41. Re:there are no more late fees... by Haeleth · · Score: 4, Insightful
    You never pay a late fee. You simply own the movie.
    They say no late fees. They mean no late fees. It doesn't say anything about other fees.

    I've decided to start a new political party. We pledge that if we get power, we will ABOLISH TAXES. You heard me right - we will operate a ZERO TAX POLICY. You will never have to pay tax again for as long as we are in power.

    I take it I can count on your vote?

    (We may, from time to time, at our discretion, charge Residence Fees of up to 100% of your annual income. We believe that the advantage of living in a TAX-FREE society will more than make up for you simply being forced to give all your money to the government.)
    Get the point?
  42. I used to work in a video store by Anonymous Coward · · Score: 2, Informative

    When a new release movie hits the shelves, it can cost as much as $100 to the store. These movies can't be had for the same prices that you as a consumer pay when they hit DVD on the retail shelves.

    The peak demand for the movie occurs in the first week, but then it rapidly drops off. This is because everyone who comes into the store always wants to rent the very latest thing.

    As a result, in order to recoup their investment in any given movie, they have to rent it out at least 17 times at $6 a pop, and that's not even taking into consideration their other running costs. Ideally they want to rent it out to a different customer every night of the first week after release, and then hopefully as often as possible after that. Even so, it can be up to a year before all copies of a given title end up paying for themselves.

    Consider a really big title of which they might have 100 copies. That's $10,000 tied up in a single movie. They need to do a lot of rentals before they make up their outlay. Some titles never make a profit, but the store has to carry the losing titles as well as the winners so that people will feel like there's a good selection available.

    It should come as no surprise, then, that the "No late fees" campaign does not mean that you can rent a new release on the day it comes out and keep it for as long as you want. And just say you kept it for a few weeks and decided that you liked it, how will you feel when you see that the true cost of the movie to Blockbuster ($100) has been billed to your credit card?

    It's just painfully obvious that this is the way things work. I admit, sounds like they should be clearer about the "restocking fee", but I can't fault them for doing things like making telephone reminders. It is a business after all, and its purpose is to make a profit.

    1. Re:I used to work in a video store by stienman · · Score: 2, Informative

      It must have been a very long time ago that you used to work in a video store. The video stores sued the movies studios for inflating prices a long time ago. Now the videos come to the stores for $20 to $30 per video for smaller chains that purchase them through distributers. Blockbuster is its own publisher and distributer so I'd be surprised if they were paying more than $20 per movie after licensing, production,l and distribution.

      -Adam

  43. People forget by jwcorder · · Score: 3, Insightful
    Most people seem to forget that if you want to keep the movies as long as you want, they have an unlimited rental plan just like Netlfix. This is only for people who sometimes keep their movies over a few days. The only people bitching are the same people who think they can keep a library book for 6 months.

    The majority of their rentals are 5 days. You get a week in addition to that. If you can't stop by the video store on your way home to drop your movies off in 12 days, they should charge you.

    Or better yet, go back to the old policy and autodraft late fees from the customers. See which policy causes people to bitch more.

    --
    http://jayceecorder.blogspot.com
  44. Re:Well, it is worse-- by superjaded · · Score: 2, Interesting

    >But if you bring the movie back after 7 days but
    >before 37 days, they charge you $1.25.

    Semantics aside (BBV has actually not had "late fees" for a long time -- ever since that lawsuit a few years ago they're supposed to be "Extended Viewing Fees" :P), what would you rather have happen?

    Say you rent a copy of Shall We Dance, which is currently a two day rental. You keep it a week past its due day. On the old system, a late fee of $3.99 plus tax (let's say $4.23 for the sake of argument) would be accrued every two days, so if you return it 8 days later, meaning that it's around six days late, you would have to pay a $16.92 EVF balance.

    Under the new deal, if it was six days late, it probably wouldn't charge you anything at all! But if it's one more day late, yes -- the price of the movie is charged to your account (the price of the movie less the rental fee) which is about $18.00 for a new movie like Shall We Dance. If you've a credit card on your account, it's charged to that. If you don't, it's just slapped on your account.

    When you return it, the $18.00 is refunded to the account minus the $1.25 restocking fee. So if you had that credit card, you'd show a negative balance of around $16.75, or if you had no credit card, you'd have a "late fee" of $1.25.

    If you have that negative balance, you can have the MOD refund it to the credit card on your account or you can use it as money within BBV and not have to worry about paying for stuff for the next few weeks. Choice is yours.

    I don't know about most people, but if it's a choice between having to pay $12.69 for keeping a 2 day rental a few extra days or having a net loss of $1.25, I'll choose the latter.

    Also, even on the old system, if you kept the movie long enough (around 15 days), the movie should be sold to the customers account plus the EVF charges accrued until that point. So even if they charge the PRP price of the movie (probably $12.99 or $13.77 after tax), you have to pay the EVFs that have accrued to that point as well. Keeping a two day rental out for two weeks will give the account a balance of about $25.38 (the price of about six movie rentals). So if you "got stuck" with a movie, you would end up paying almost $40 for it, rather than the $18.00 you pay under the new policy.

    But heck, misleading commercials aside, if you prefer to pay $3.99+ for only having a movie a few hours late, that's your perogative. If I wasn't a BBV employee (;)), I definitely would prefer the new plan. Of course, TEOL has other drawbacks, including the fact that NOBODY brings ANYTHING back on time anymore, so many "righteous" customers who think they're entitled to see the latest Hillary Duff movie right now get all pissy at us because their fellow customers want to keep it a "few extra days."

  45. Bunch of whiners! by Stone316 · · Score: 2, Insightful
    My god, i've never heard a sorry bunch of whiners complain so much before over something like this. I go to blockbuster a fair bit, mostly for the kids and I love this program. With a very busy schedule its very easy to be late a day or two if you have the movie for a week. The late fees add up really quickly.

    Maybe they didn't do a great job of explaining the program for customers but blame is a 2 way street here. All their signs refer to the phamplets available at each cash (and throughout the store) which explains the program in detail.

    The way it is now, you have around 37 days extra to keep a movie and return it for the same cost as 1 day late fee before the program. I swear to god some people here can complain about anything.

    One person above was paying their monthly fee to netflix and kept one of the movies for 3 months. You could have bought the damn movie but you'll complain about blockbuster?

    Yikes...

    --
    "Thanks to the remote control I have the attention span of a gerbil."
    1. Re:Bunch of whiners! by Anita+Coney · · Score: 5, Insightful

      First, did you read the links above?! Blockbuster says, without an OUNCE of ambiguity, that "there are no more late fees." It has a link to "find out more" and that link is DEAD!

      Here's a scenario, what if the pamphlets and the dead links said you had to turn over your first born child?! Would that be fair too?

      The fact is that Blockbuster COULD have put the fact that you've bought them after a week on their signs AND on their website. How difficult is it to say, "There are no more late fees, after a week, you've bought it!" The ONLY reason that did not do something so incredibly simple is because they want to deceive their customers!

      The fact that Blockbuster did NOT say that means they were committing fraud by omission.

      I agree that consumers have to take some responsibility, but when a company says "no more late fees" but then charges you 20 bucks automatically after a week, they are screwing customers over!

      --
      If someone says he and his monkey have nothing to hide, they almost certainly do.
  46. Re:Well, it is worse-- by Squirmy+McPhee · · Score: 2, Informative

    This is a MUCH better deal than before, so to the fucking jerkoff suing them: "STOP IT"

    Despite the misleading ad, this is way better than before, and i dont want to lose it because of some whiney malcontents and a money grubbing lawyer.

    So companies should be allowed to lie in exchange for giving customers a better deal? I don't think so. And you're not going to lose this because of lawsuit -- Blockbuster can't afford to go back to the old system. The lawsuit seeks only to change the advertising to something more honest.

    As for the "money grubbing lawyer," he happens to be the Attorney General of New Jersey, doing his job by enforcing the laws of that state. Oh, and he doesn't get any money out of this either -- just the same paycheck he gets whether he sues Blockbuster or not.

  47. Re:Well, it is worse-- by Bellyflop · · Score: 2, Insightful

    It doesn't matter if it's a better deal or not. They can still offer the deal while changing their advertising. They are using it to reap profits and it's misleading and the cost is being borne by the consumer and competitors who are losing business.

  48. Are People Just Lazy/Stupid? by Clanner · · Score: 2, Insightful

    Maybe it's me, but WTF is so hard about returning a rented movie on time? Granted, I haven't rented anything since laserdics were popular, but I *never* had a problem returning a movie within three days. As for DVD's, I just buy the ones I want. Between the DVD club, buying used DVD's, and just finding good deals, I'm averaging right around $10 a DVD, and I get to watch it as many damn times as I want. And yes, I have watched most of my DVD's more than once.

    Are people really so stupid to think that by saying "No more Late Fees", that they can keep rentals forever without penalty?

    If you can't be responsible enough to return a rental product on time, maybe you shouldn't be renting them in the first place...

    --
    The dry fish swims alone.
  49. Netflix Rocks by HangingChad · · Score: 4, Interesting
    We dumped all our satellite premium channels in favor of Netflix.

    Now instead of watching the same cheap movies over and over we have a great selection that includes foreign films, documentaries, TV (including British TV series), special interest and, somewhat ironically, the series from the recently disposed premium subscription channels.

    I couldn't imagine going back to anything as primitive as a video store, especially Blockbuster. *urp*

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
  50. Good. by t_allardyce · · Score: 2, Interesting

    Seriously, if the retards at Blockbuster marketing had just said "we've added an extra week to all rentals" - which is really what they've done, then there wouldn't be any of this hassle for them. They deserve everything they are about to get for a stupid marketing gimmick that just obfuscates their real policy.

    --
    This comment does not represent the views or opinions of the user.
  51. Am I alone here by PK_ERTW · · Score: 3, Interesting
    Hey Slashdot

    I have a question: am I alone here in thinking that I actually like Blockbusters(BB) new policy? Now, let's make things clear, I am from the club that thinks that BB is evil. I don't like how they use their corporate clout to force censorship, they are over priced, and they are abusive to their underpaid staff.

    Whrn I saw their new ad campaign that said you could keep your movie for an extra "day or two", immediately I thought the worst. I figured that on day three they would charge you for all three days missed and continue to abuse you. When I read the deal (look it up,I am not gonna explain it here) I thought it was extremely fair.

    Lets be clear, you are still renting something, and you are expected to return it. If you do not, they do have to restock it. They may have to buy a new copy. It will require paperwork. These things take an employees time, who is being paid money.

    I use Zip, so I am still not about to switch, but if I really want to see something, or I need to rent a movie for whatever reason, I would consider using BB. I would like know that if I like the movie, I can just keep it, and I can return it at my leisure without having to worry about things. A week is a long time people. A month is even longer, and an extra $1.75 for those 3 weeks isn't that mutch.

    pk

    --
    Engineers arn't boring people, we just get excited about boring things.
  52. Interesting but... by jomagam · · Score: 2, Funny

    What does it have to do with Nerds ? It's not even Blockbuster Online that we're talking about.

  53. Dream for me by null+etc. · · Score: 2, Interesting
    This is a dream come true for me. I hate lawyers, and I hate corporation who pull shit over the public, but I love lawyers who sue corporations who pull shit over the public.

    I signed up for a Blockbuster account, just so I could rent some videos to test out my new HD television. I recently moved to this area, and Blockbuster was the only video store around.

    I signed up because of their "no late fees". After I filled out my application, I was handed a small piece of paper with likewise small text, stating that the videos had to be purchased at market price if beyond a 6 days late. Then I looked up and saw the price of $4.29 per rental. I was fumed.

    So I voted with my dollars and never rented a video there. I now drive back to Philadelphia to rent from TLA, which has supperior selection, prices, and deals.

  54. You are a sucker, then. by tgd · · Score: 2, Interesting

    You need to shop around. Hell, get your free phone and pay the $150 cancellation fee if your money management skills are so bad its somehow going to cost you $2000.

    If you buy a car telling the sales guy "I want a payment of $x a month" or "I want the zero percent financing" you've already broadcast "sucker who can't manage his money" to the sales guy in blazing lights. Last car I bought I took the 0% financing, knowing exactly what the alternate discount was if I didn't take it. And the dealer made $400 on the vehicle, after their holdback (it was $600 under dealer *cost*, after all the incentives, almost $7000 off MSRP.

    Its easy to get all those deals and not get screwed if you take some time and do your research. I went in knowing the exact (to the dollar) cost the truck I bought cost the dealer, exactly what the suggest prices for all the hundred different options on it cost, and precisely what incentives to the dealer and the buyer were available at the time, as well as checking what a five-star dealer's holdback was.

  55. The only thing that really changed... by dotgod · · Score: 2, Insightful

    is that Blockbuster extended the due date by a week and changed the late fee to $1.25.

  56. The End of Late Fees. The Start of More. - Catch by Absentminded-Artist · · Score: 2, Insightful
    I'm surprised nobody's mentioned the last part of Blockbuster's ad campaign. My friends and I couldn't be the only ones who sat back, read "The End of Late Fees. The Start of More.", and then said, "The start of more WHAT?"

    It's obvious that this is a shakedown. We had a late video, but my wife believed the ad campaign. "They don't charge late fees anymore," she'd tell me. Then I received a bill from Blockbuster for the two videos I rented. One had been returned because I didn't believe Blockbuster. One was still in it's 7 day grace period. I called the store and spoke with a manager. He assured me it was just a reminder. I had to inform him that the "reminder" claimed I had decided to keep the videos and that I would be charged for them. I could get a refund if I returned them within 30 days but be charged a $1.25 restocking fee. The odd thing was that my account hadn't been charged yet, and he could clearly see that one of the DVDs was not due yet. If I was a pushover consumer, I would have assumed that I had already been charged, blamed myself for being stupid, and left it at that, not called to check on my account.

    This is criminal. They obviously plan on people forgetting about the rentals, then scare them into believing they've already blown it so they get charged fullprice for the discs. I'm glad somebody's suing them. Not only was this the most stupidly worded commercial campaign but it was the most deceptive one I have seen in a long time.

    --
    The Splintered Mind - Overcoming
  57. Re:Hopefully CREDIT CARDS are on the chopping bloc by Creepy+Crawler · · Score: 2, Insightful

    Better yet, is to use Credit Cards AGAINST bad businesses like Blockbuster.

    Talking in a stern manner, whilst using strong terms as : Unauthorized, Theft, Illegal, and other power words and start some serious proceddings against BB.

    When this shit starts hurting BB's mail line, awwwwww ;)

    --
  58. Re:We'll call it the TANSTAAFL Law by tfoss · · Score: 2, Informative
    Their competitor Netflix is saying the same thing - "Keep them as long as you want! No late fees!" Except I'm paying $17.99 a month and can't get any new movies until I return the old ones, so ergo the late fee is $17.99/month. Duh.

    Are you serious? Surely you are just trolling (or are an idiot). "Keep them as long as you like." Check, you can. Period. In fact, netflix is happier the longer you keep them. "No late fees." As in, extra fees for turning in a movie late. There are none. You *cant* turn a movie in late. The monthly fee is the same, regardless of whether you return every movie you get the same day, or whether you don't return a single one. I can't imagine a way you can consider that a "late" fee.

    -Ted

    --
    -=-=- Quantum physics - the dreams stuff are made of.
  59. Re:Hopefully CREDIT CARDS are on the chopping bloc by angle_slam · · Score: 2, Insightful
    A lot of credit cards are doing this now. They regularly check your payment history on your credit report. If they see anything, they'll raise the rates.

    In addition, they are getting much more strict with late fees. I had one credit card due on the 13th of every month. I get paid on the 14th. So I would send my payment to get there on the 14th. They never cared before. Now, they charge $39 every month if even a day late. I've been forced to go to automatic payments from my bank, with payments sent well in advance, to stop being affected.

  60. I like it too! by Omega · · Score: 2, Interesting
    I don't know about everyone else here, but I didn't find anything deceptive about this at all. And I really enjoy the new policy.

    First off, every news story I read or heard about the "no late fees" policy explained the caveat that it didn't mean you got to keep the movie forever, no strings attached. I guess I'm naturally distrustful too, so I even read the FAQ's about it on their website. They all said you got 1 week past your due date gratis. After that you automatically "bought" the movie, and it would be charged to the credit card on your account. If you returned the movie after that, the full charge would be refunded minus a restocking fee. This doesn't seem underhanded or tricky at all. In fact, it beats the hell out of Best Buy's "restocking fee" bullshit. I know I'm renting from Blockbuster, and keeping the movie forever is breaking that contract. Your movie is still due on the due date. Just because you don't have to pay a late fee for returning it late doesn't mean the movie doesn't have a due date any more.

    Secondly, I know Blockbuster is a franchise system, so not every store is owned by the company. And every time I see an ad for them (or any other franchise system like McDonalds or Subway or something), they always feature the disclaimer "at participating locations." So I didn't assume that every store was going to follow through -- and sure enough, I heard news reports that some stores (to the dismay of the corporate parent) said they weren't going to participate. The stores near me all had big "The End of Late Fees" signs in the window, so that's how I knew they were participating.

    Finally, I've been bitten by the late fees thing before. I know when I check out that the clerk always tells me when it's due ("Monday by noon" or whatever), and when I have the movie at home, I keep the receipt in the case as a reminder of when it's due -- so when I forget to return it, I know it's my fault for forgetting. Now I don't have to worry about forgetting occasionally. Recently, I rented a new release (2 day rental) and I only watched half the movie on the first night -- when the due date came and I forgot to return it, I could still watched the second half and return it the next day without paying a fee. To me, that's fantastic.

    If Blockbuster hadn't posted a full terms and conditions or if they said something like "no strings attached", then, yes, I would say they were being deceptive. But they didn't do that. They listed their full T&C -- they even posted easy to read FAQ's on the details, and every PR interview or press release they put out disclosed the "automatic purchase" and "restocking fee" disclaimers.

    IMHO, it's bullshit lawsuits like this that lead to crap laws like the one Congress just passed. There are people out there suffering real physical harm because corporations want to save $0.03 on a pool drain cover or hide the results of clinical tests that show their drugs are unsafe. There's factories out there that belch carcinogens into the air or drain PCBE's into the ground and some people get their panties in a knot over a $1.75 because they kept "Dodgeball" out for a month? If some little girl has her intestines ripped out by a pool drain, I want the motherfuckers to pay. But I could care less if some 30 year old guy thought he could keep his rentals forever because he was too lazy to read the fine print.

  61. Re:Well, it is worse-- by DarkEdgeX · · Score: 2, Informative

    Why does common sense dictate this? It says "NO LATE FEES". If I return something late, say, a month late, and I get charged a fee, isn't that the exact opposite of what their advertising is claiming?

    Isn't that unfair to their competitors that they can advertise something they have no intention of living up to?

    Oh, and that "whiney malcontent" "fucking jerkoff" suing them is an Attorney General of a state in the United States. It's not a citizen crying foul, it's an AG seeing an obvious violation of consumer protection laws (not to mention unfair business practice; or are we saying it's OK to advertise anything now to put your competitors out of business even if you never actually live up to your offers?).

    --
    All I know about Bush is I had a good job when Clinton was president.