DOW JONES NEWSWIRES
Blockbuster Inc. (BBI) will pay $300,000 in civil fines and
costs to resolve a four-year probe looking at the video-rental
giant allegedly overcharging customers in California.
The decision comes as Blockbuster has been battling slumping
sales as it's faced with the recession and increasing competition
from online rivals such as Netflix Inc. (NFLX). The company also
has struggled to conserve cash amid concerns about its
liquidity.
Blockbuster was found to have charged customers more than the
advertised or posted price on scanned items. The investigations
covered 14 counties, and the agreement was announced by the
district attorneys offices in San Diego and Los Angeles
counties.
"The judgment is an important step toward pricing accuracy and
fairness in the marketplace," said L.A. District Attorney Steve
Cooley. "Consumers should be able to rely on the accuracy of the
prices charged at the check stand."
Blockbuster, which did not admit wrongdoing, will pay $237,750
in penalties and $62,250 in costs.
Shares closed at 79 cents Monday and didn't trade premarket. The
stock is down nearly 80% from last year, though it has rallied
since hitting an all-time low of 13 cents in March.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com
