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British advertising watchdog, the Advertising Standards Authority (ASA), received multiple complaints relating to a magazine insert and email from the Lovefilm rental service. The complaints centred around the use of the term "unlimited" to describe the amount of rentals offered to customers, and after an investigation by the ASA, these complaints were upheld.

Lovefilm, who offer DVD and game rental, as well as movie downloads, suggested that a customer could theoretically receive "26 discs during a 30-day period" but customers typically returned their discs once per week. They believed that customers would understand their usage of the term "unlimited."

The rental service went on to admit that they implement a fair use policy to "manage their growing number of members" but insist that it is used sparingly. The policy was designed to "ensure that a fair and balanced service was provided" to each customer on their different packages. Their system works by sending higher priority titles to customers that have on average used the service the longest, yet rent fewer discs per month.

Lovefilm maintain that customers know about their fair use policy and agree to it when they sign up—it is intended to de-prioritise members thought to be abusing the system. They went on to suggest "those members who rented very high numbers of discs were often engaged in illegal DVD piracy."

The adjudication concluded that although their policy did not affect the majority of customers, Lovefilm's advertisement did not mention their service was subject to a fair use policy, and therefore breeched clauses relating to substantiation and truthfulness. Lovefilm is currently in the process of merging with former rival Video Island who run Screenselect, the result of the merger will make Lovefilm "Europe's leading online home entertainment group."

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