State settles Blockbuster late-fee allegations

Washington is one of 46 states that have reached an agreement with Blockbuster to settle allegations that the video-rental giant misled consumers in the advertising of its "No Late Fees" program.

Under an agreement made public yesterday, Blockbuster admitted no wrongdoing. But it agreed to improve communication with consumers to avoid misunderstandings.

The states alleged that Blockbuster's ad campaign was misleading because it failed to disclose clearly that consumers who kept an item more than a week past its due date would be charged the selling price of the item.

For an item returned between seven and 30 days late, the selling price would be refunded, but the consumer would be charged a restocking fee of $1.25 or more.

As part of the settlement, the company agreed to include more signs in stores to explain the terms of the no-late-fees program and to reinforce employee training, among other changes.

In addition, Blockbuster agreed to pay the states $630,000. Washington state's portion is expected to be about $12,500, the state Attorney General's Office said.

Consumers who believe they are entitled to a refund may get a refund-request form at any of the 136 Blockbuster stores in Washington state.

Peter Lewis: 206-464-2217 or plewis@seattletimes.com