Wednesday, March 30, 2005

Update on "Skippy" Blockbuster

I previously posted on this subject over a month ago. Here's the update via Studio Briefing:


Blockbuster on Tuesday reached an agreement with the attorneys general of 47 states to settle charges that it misled consumers with its "no late fees" promotion. The video rental company agreed to pay $629,000 to reimburse legal costs and to reimburse customers who were misled by the promotion. The case centered around Blockbuster's policy of charging a $1.25 restocking fee if customers returned rentals after eight days. "A fee by any other name is still a fee," Utah Attorney General Mark Shurtleff said in a prepared statement Tuesday. "This case is important to remind advertisers that catchy slogans can be misleading and even violate the law." Blockbuster, however, did not do away with the fees, saying only that it intends to post more signs in its stores that the describe them and to print the information on sales receipts.

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