Blockbuster Agrees to Pay Over "No Late Fees" Ad Campaign

Blockbuster has reached a settlement in the lawsuit filed on behalf of 47 states and the District of Columbia over the "No Late Fees" ad campaign. The lawsuit claimed Blockbuster deceived customers into believing they could keep rentals as long as they wanted. However, rentals are automatically converted to a sale on the eighth day and if customers return the rental after the eighth day, they're charged a $1.25 restocking fee.

Blockbuster will offer consumers who felt they were deceived credits or refunds. The company will also change the way it advertises "No Late Fees."