Blockbuster paid $630,000 and offered refunds to some customers to settle suits in 47 states over its “No Late Fees” program, which actually charges late fees. The New Jersey suit is still pending. For those just tuning in, the suits allege, with good reason, that Blockbuster is not upfront about the true costs of the program. The settlement will not change the program itself, but will require Blockbuster to advertise more clearly.

For most companies, without Blockbusters’ huge clout and high profile, you won’t be subject to this kind of legal exposure, but bad price communication will still hurt your business.

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