Some Blockbusters Reject "No Late Fees" Slogan

Blockbuster's "No Late Fees" ad campaign has become another controversial news item one more time in 2005. Some stores are now charging late fees in the south and more locations could soon follow.

The Arkansas Attorney General has received complaints that many Blockbuster stores in that state have gone back to charging late fees for movies, despite Blockbuster's "No Late Fees" ad campaign that began last winter. Some locations in Alabama, Mississippi and Tennessee will resume charging late fees as well.

A spokesperson for Blockbuster says the stores are independent franchises and the ones Blockbuster owns will continue the "no late fees" campaign. Individually-owned stores can make their own decision regarding the policy. Franchise owners say the lack of late fees encourages the consumer to keep the movie and the stores can't keep new releases on the shelf.

In late 2004, Blockbuster kicked off the "No Late Fees" campaign. By early 2005, 47 states and the District of Columbia sued the company for deceptive advertising. Blockbuster settled the suit by agreeing to refund fees to customers who felt they were deceived.

In related news:

• Blockbuster Sued Over "The End of Late Fees"
• Blockbuster Agrees to Pay Over "No Late Fees" Ad Campaign