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N.J. claims Blockbuster claim is a sham

TRENTON, N.J., Feb. 18 (UPI) -- New Jersey's attorney general filed suit against Blockbuster Inc., Friday claiming its "no more late fees" policy defrauds video renters.

New Jersey Attorney General Peter Harvey filed suit in Mercer County Superior Court in Trenton, charging Blockbuster with deceptive advertising and violating state consumer fraud laws.

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Harvey released a statement saying: "Blockbuster boldly announced its 'no more late fees' policy, but has not told customers about the big fees they are charged if they keep videos or games for more than a week after they are due."

In response to the suit, Dallas-based Blockbuster said it was "disappointed," CNN/Money reported.

"The fact is there are no longer late fees at Blockbuster," the company said. "We're disappointed he took this action, because we believe our end-of-late fees program is a terrific program and we've received tremendous feedback from both our customers and employees."

Under the policy, customers get one week past the due date to keep a movie. After that, a $1.25 fee is tacked on and one month past the due date, they must pay the retail replacement price.

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