Dallas-based Blockbuster has closed the book on the “no late fees” crisis in Texas and 46 other states. The New Jersey attorney general’s office, which announced the first state investigation, is still pursuing its own lawsuit. The Dallas Morning News reports today:

Blockbuster Inc. agreed to pay $630,000 and refund customers as part of an agreement with 47 states including Texas and the District of Columbia investigating the company’s “no late fees” promotion.

The Dallas-based company’s ads failed to clearly disclose that a customer could be charged a $1.25 re-stocking fee or the retail price of a movie or game if it’s kept longer than the seven day-grace period that runs after the due date.

The ads also failed to disclose that the “no late fees” offer wasn’t available at all stores because not all franchise stores are participating.

Blockbuster must make refunds to customers who submit written claims that they were charged the fee and felt misled by the national television campaign in January.

“Advertisers may not use catchy slogans if those slogans are misleading,” said Texas Attorney General Greg Abbott said during a press conference in Dallas Tuesday.

The settlement, which was brokered by Oregon Attorney General Hardy Myers on behalf of the other states, also requires Blockbuster to make the existence of these fees clear in future ads.

Blockbuster senior vice president Karen Raskopf said the company “wants everyone to understand this program and to use it.” Most customers bring the movie back within two days of the due date, she said.

The $630,000 fine will be distributed to all states from the Oregon Attorney General’s office and amounts to about $13,000 per state to cover the costs of the investigations.

Two states didn’t participate, Vermont and New Hampshire. New Jersey is pursuing its own lawsuit filed in February, said spokesman Jeff Lamm for Attorney General Peter C. Harvey. “Our case is still active.”

Unfortunately for Blockbuster, the negative attention has undoubtedly caused more than $630,000 in damage to sales. Here’s hoping they can turn this mistake into a positive.