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"No late fees" sounds like a simple concept to me. The clincher in this case was that the company took excessive liberty with wording their offer vs. the reality of their offer.
However flexible our language, fine print rarely excuses explicit guarantees. The exceptions are when the offer is vague and open to interpretation, or "marketing humor". By my reading, "No late fees" is too straight-forward to be an exception. I'm guessing they dodged an FTC bullet by settling.
I haven't rented a movie in quite a while. Probably 5yrs from these guys. So I could be missing something that would make the offer seem less deceitful.
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