DALLAS, March 29 (UPI) -- Texas joined 46 other states Tuesday in an agreement with Blockbuster inc.to settle allegations the company deceived consumers in its "No Late Fees" ads.
Texas Attorney General Greg Abbott said Blockbuster failed to clearly disclose that a consumer who rented a video or game and kept it for more than seven days after its due date would be charged the sale price. If the consumer returned the item, there was a "restocking" fee of at least $1.25.
Abbott also alleged Blockbuster didn't sufficiently disclose its "No Late Fees" program was offered only at participating stores.
Blockbuster began its "No Late Fees" promotion on television and radio and in stores in December. Under the settlement, the company agreed to fully disclose in future ads any charges associated with a rental converted to a sale.
Blockbuster also promised to provide a full refund or credit for any rental item that was converted to a sale under its "No Late Fees" program upon the return in good condition of the items rented. The company will also give refunds of "restocking" fees, Abbott said.
