Blockbuster will pay up, clarify advertising regarding late fees.

Publication: The Dallas Morning News (Dallas, Texas) (via Knight-Ridder/Tribune Business News)

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COPYRIGHT 2005 The Dallas Morning News

Byline: Maria Halkias

Mar. 30--Blockbuster Inc. has agreed to pay a total of $630,000 to 47 states and offer refunds to customers to settle the states' investigations into its "no-late-fees" promotions for movie rentals.

"Advertisers may not use catchy slogans if those slogans are misleading," Texas Attorney General Greg Abbott told reporters Tuesday in Dallas. "Blockbuster's no-late-fees program wasn't what it claimed to be."

The agreement between Dallas-based Blockbuster and the state attorneys general wraps up a series of investigations into how the movie-rental giant presented the change in its late-return policy to customers. A lawsuit by the state of New Jersey over the policy is still pending.

Chairman and chief...

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