Blockbuster Pays For Late Fee Debacle

In a move to satisfy complaints over its so called "No More Late Fees" ad campaign in which the video chain's elaborate and twisted return policy confused and angered consumers, Blockbuster has agreed to pay $630,000 in legal fees to settle claims from 47 states and the District of Columbia. The settlement calls for Blockbuster to refund anyone who claims the ad campaign misled them into believing they could keep their rental for as long as they liked rather than, as the details explain, having to return it within 8 days or face the full price of the rental added to their account only to be refunded if it was then returned in 30 days along with a $1.25 restocking fee.

Confused? Yes and that's the whole point behind Blockbuster finding itself in this mess. Sure, all the T's are crossed and the I's dotted in the rental agreement but when Blockbuster goes out and spends millions to scream, "No More Late Fees," without divulging details clearly, something is amiss and the chain is now paying for that oversight. We don't know who said it first but there's an important little tidbit to keep in mind when marketing: KISS - keep it simple stupid. Clearly, Blockbuster did not adhere to that notion.

by Steve Hall    Mar-29-05   Click to Comment   

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