Block…Busted is More Like It
Blockbuster has recently been running ads announcing “No More Late Fees”, as part of their attempt to recapture consumers who have begun using alternative methods of renting movies, such as NetFlix. Well, the New Jersey attorney general has filed a lawsuit against Blockbuster, citing that it’s fraudulent in nature since after the one week grace period, the late movie is charged as a sale to your credit card, and if you bring it back after that, you have to pay a restocking fee. Also, not every Blockbuster is participating, which, the attorney general says, is deceiving since Blockbuster is a recognized national chain.
Ok, I don’t like Blockbuster, but there are at least two things that make me inclined to see this lawsuit fail. First, the commercials say “participating locations only” or something like that. I specifically remember seeing that disclaimer when that ad first ran. Yes, the text was small, and onscreen for a short period of time, but it met the broadcast requirements for such disclaimers. On the second point of what happens if you never bring the movie back, well duh. You don’t get to keep the movie for the price of a rental. Netflix is a membership, and they’ll keep taking your money each month, and limit the number of movies you can have out at a time, so they are never in danger of having a customer “buy” a movie for the cost of a single rental. If you cancel your Netflix membership, and have unreturned movies, guess what they do...that’s right, they charge your credit card for purchase price.
Do I think they are intentionally trying to be deceptive? Of course! That’s what advertising is. I don’t go there anymore, but I’m willing to bet that there are either brochures on the counter, or a “no late fees” policy on your receipt. They inform you of every part of the program, but they aren’t going to end a commercial with, “Oh, and here’s how we still make money as a business with this program, that you aren’t thinking about.” What ever happened to caveat emptor? Why do people need the government to protect them from themselves? Why not just work on not being stupid instead? I’m sure there’s a government sponsored program out there, or an attorney who would gladly sue some company or pharmaceutical manufacturer that is no doubt to blame for your lack of discernment as a consumer.
Posted Tuesday February 22, 2005 in Rants by Derek Jones
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I am going to have to agree with you on this one. I think this is the result of the same type of person who accuses me of fraud for having empty merchandice boxes in my store to show the product off even though we are out of stock.
I am sure it says “restrictions apply”
Though, i do think “ NO LATE FEES” is not a good selling point if there are in fact some sort of fees for not returning things.
Lastley, if blockbuster didn’t charge $5 damned dollars for one dvd rental, they would get more business and wouldn’t be loosing out to things like netflix.
By Greg Ferrell on February 22, 2005 at 05:55pm link