Jason tipped me off to the story in the Oregon Bend, Blockbuster busted, must refund "no late fees". The story states that Oregon Attorney General Hardy Myers was the lead on the negotiations, which resulted in a $630,000 settlement. The proceeds will be used to reimburse the states for the cost of the investigation.
Here's the press release from New York Attorney General Eliot Spitzer, which stated:
Blockbuster, Inc. settled investigations commenced by 47 states and the District of Columbia and agreed to provide clear and conspicuous disclosures about its "No Late Fee" program and to issue refunds to thousands of consumers who have paid "re-stocking fees" or were charged the full cost of a video.
The Attorneys General alleged that the advertising campaign launched in late December 2004 was misleading because it failed to clearly disclose that, seven days after a movie or game’s return due date, the consumer would be charged its selling price if the item were not yet returned. Thereafter, if a consumer returned the rental, he/she would be credited for the selling price, but would be charged a "restocking fee" of $1.25 or more.
The Attorneys General also alleged there was insufficient disclosure that not all Blockbuster franchise stores were participating, leaving customers of those stores wrongly believing that they, too, would not have to pay late fees.
The terms of the settlement include:
Make the terms of the "No More Late Fees" program clear and disclose any charges.
Disclose that not all Blockbuster stores are participating in the program.
Provide notices throughout stores that includes the terms and conditions of the promotion.
Remove the existing "No More Late Fees" signage throughout the store, and request that franchises do the same.
Link to the terms and conditions from the main page of their Web site.
Notify customers in writing when a rental has been converted into a sale, and that they need produce the credit card that opened the account to receive a credit.
Provide a refund or credit to any customer that failed to return a movie, if they do so by April 28, 2005.
Additional information from the press release on obtaining a refund or credit:
Customers who believe they are entitled to a refund may obtain complaint forms at Blockbuster stores or by writing to: Blockbuster at 1201 Elm Street, Suite 2100, Dallas, TX 75270, Attention: Mr. Steve Krumholz, Sr. Vice President. New York consumers also can call the Attorney General’s consumer help line at (800) 771-7755 for a copy of a complaint form.
Eligible customers are only those who rented a product after December 31, 2004 and prior to March 29, 2005. Customers must allege the details of the transaction and a lack of understanding of the "No Late Fee" program. Restitution only applies to fees on items in the initial rental transaction after December 31, 2004. Requests must be made by April 28, 2005, or if after that, within 7 days of first discovering that late fees have been charged.
The Blockbuster.com Web site now includes "The End of Late Fee Terms" which is a link to the following text:
Membership rules apply for rentals. Rentals are due back at the date and time stated on the transaction receipt. There is no additional rental charge if a member keeps a rental item up to 7 days beyond the pre-paid rental period. After 7 days beyond the due date, Blockbuster will automatically convert the rental to a purchase on the 8th day and will charge the member the selling price for the item in effect at the time of the rental, minus the rental fee paid. Member then has 30 days to return the product and receive a credit for the selling price charged, less a $1.25 restocking fee. These terms available at participating stores only. Franchisee restocking fees may vary. See store or blockbuster.com for complete terms and conditions.
The awesome Ain't It Cool News team sneaks into a press junket that gets 
