The State of New Jersey vs. Blockbuster Video: Who is right?

[LynneSin]

http://www.imdb.com/news/sb/2005-02-22/#film6

New Jersey Accuses Blockbuster of Fraud


New Jersey has accused Blockbuster of perpetrating a fraud on its customers with its "no late fees" policy, saying that the video renter does not inform them of hidden charges. Under Blockbuster's policy, if customers do not return a video within one week after renting it, their credit card is charged the cost of buying the movie. Renters are then given one month in which to return the movie for a refund, less a $1.25 restocking fee. New Jersey Attorney General Peter C. Harvey said in a statement that customers are being ambushed by Blockbuster with the hidden charges. A spokesman for the company said that the customers are phoned after the one-week grace period and informed that they have been charged for the video. If they wish to return it for a refund and tell the customer representative that they were not aware of the restocking fee, it is waived the first time, the spokesman said.

I like what the NJ AG is doing because Blockbuster is trying to compete with Netflix but Blockbuster's policy is bonus. To me "no late fees" means just that - no fees. But This is bullshit that BB will charge your credit card if the movie isn't returned after a month. With Netflix, you just don't get your next movie if you forget to return one.

So what do you folks think

[aden_nak]

1. It's not "No Late Fees". What they are doing is fine, but call it that.

They should run it the same way Netflix runs it. You can't get a new movie until you bring back your old one.

The real reason they are doing this is, of course, that Blockbuster makes a huge chunk of profit on late fees, and they have every intention of keeping as much of that late fee revenue as possible. Call it "extended rental" or some shit like that. But it's not really fair to Netflix, is it, if Blockbuster can offer a crappier service under the same name.

[realisticphish]

2. BB is ripping people off

with a classic late fee scam, and it needs to be stopped


:hippie: The Incorrigible Democrat

[luvLLB]

3. i knew there was a catch somewhere...

after I got hit with the 1.25 "restocking fee" and read the fine print..i hate blockbuster!!

[LynneSin]

4. Yep

It's not quite netflix.

BTW, welcome to DU :hi:

[LoZoccolo]

5. It's not really the charging-for-the-video that irks me.

I think that that would have to happen eventually, and I'm not sure, but I'd think even Netflix would do it if you keep it after your subscription lapses.

It's this "restocking fee" that is BULLSHIT!

:wtf:

Anyways, Netflix seems to be more popular than Blockbuster's mail-order rental service anyways, despite the fact that Blockbuster is cheaper! I think a lot of people remember when Blockbuster gave them a late fee, and now want to bring them down!

[DS1]

6. Other

If you're that fucking dumb that you think you can walk away with a DVD for under 5 bucks to use forever, you need the kind of big government you likely vote against to protect your ass from advertising that if nothing else asks a rhetorical question.

[Osamasux]

7. Blockbuster's business model is almost dead.

If they want to take on Netflix, they have to give up their late fees. They said they would, then they lied like a Bush. I don't see any gray area.

[GalleryGod]

8. NETFLIX Rules!

We've been with them since 1999!

They are the BEST-and have only gotten =Faster:bounce: