Blockbuster's "No Late Fees" Program

Blockbuster has been sued by the Attorney General's office of the filthy, dirty state of New Jersey. They are saying that the new "No Late Fees" program is deceptive to consumers because Blockbuster: 1) charges a $1.25 "restocking fee;" 2) charges you for the price of the movie if kept beyond the 1 week grace period; and 3) because Blockbuster is a franchise and each franchise can choose whether to participate in the "No Late Fees" program. Although various sources on the net are saying that attorney general offices from 35 states are investigating the matter, New Jersey seems to be the first to sue. Here is a link to the article.

Blockbuster Sued Over Late Fees

I personally hate the program basically for one reason. I think it makes people lazy and will make it harder to keep certain items in stock. I personally have rented 3 movies under this program and kept them far longer than I would have before, and not because I "needed an extra day" with it, but simply because I didn't feel like driving an extra few miles to return the video. This program may or may not have a big impact on new releases (although even before the program it was not uncommon for certain new releases to be all out), however, it will really make a difference when you want to rent a non-new release. Blockbuster usually only stocks 1-3 copies of movies that are a few years old or more. Now, when you want to rent one of these, don't even bother asking when it's due back because it could be anywhere from 1 day to a month and a half under their "No Late Fees" program. My understanding of the policy is this:
- You have 7 days (I think) to keep a movie when you rent it (for new releases)
- After it is due, you have a 1 week "grace period"
- After the grace period, you are charged the cost of the film (i.e. $19.99)
- From this point, you have 30 days to return the film
- If you return the film, you are charged a $1.25 restocking fee (trust me, you don't want to hear my opinion on restocking fees), you are also re-credited the cost of the film that you were charged. However, the re-credit is in the form of store credit that, obviously, locks you into using that money at Blockbuster.

So, when you rent a movie from Blockbuster now, you can keep it for a month and a half and only pay the cost of the rental + $1.25, as long as you don't mind devoting $20 or so to Blockbuster rentals in the near future (which is basically just 4-6 rentals).

As for the lawsuit, I'm sure the AG's office wouldn't be suing unless they had a legitimate reason (it's not like they are a private person looking for a huge money settlement). What do I think will happen? Blockbuster will likely just revise their advertising campaign to alleviate the legal problems with the program. I would like to hear your thoughts on the program and/or lawsuit.