VUDU Fraud, Corrupt, Violating terms of service, criminal Santa Clara California

We have purchased many movies from their streaming service. We had noticed some charges on our bank card we did not make. We went thru the hops with the bank and filed the paper work on charges we know we didn’t make. Two of those charges were from episodes of "SpongeBob" of a collection we already purchased though the service. We assumed that since we owned the episode it had to be a fraudulent charge. We noted that with the bank. Shortly afterward we noticed we could not access our movies we had purchased thru their service. They had blocked us from the movies we own. I contacted VUDU thru email and explained the situation. They responded with :

Hello David and thank you for contacting VUDU customer care.

Unfortunately your account has been suspended due to chargebacks coming back from your account. To further resolve this issue please contact your bank to resolve this matter. Once it has been resolved please email us a written statement from the bank that the chargebacks are resolved.

Thank you,

Lauren L.
VUDU Customer Care
1-888-554-VUDU (8838)
support@vudu.com

I contacted by phone them and explained that they had charged me for episodes I already owned. The gentleman I spoke to looked at my account and advised me that I was correct and he would contact the billing department to fix the issue. It was Saturday and no one was in that department until Monday. I expected that the issue would eventually be fixed. On 9/9/13 I noticed that I could not access my movies still. I contacted VUDU again by phone. I spoke to a “Fred” He looked over my account and put me on hold to contact the billing department. He came back and told me that I would have to contact my bank and have them reverse the chargebacks to get my account re-instated. I advised him that the charges that they made were fraudulent as I owned those episodes. That he needs to put me on with a manager.  After holding for 30 mins he put me on with “Anthony”. I explained to him that this is fraud not letting me watch movies that I already purchased and that I would either like my money re-funded or hard copies of what I purchased since I am being prevented from watching what I own by his company. He re-iterated that it was too bad and I have to follow company policy and have the charge backs reversed. I advised him that I would contact the FTC, FBI and BBB to file fraud complaints. He told me that if that’s what I wanted to do, go ahead. They are violating their own terms of service (excerpt below):

“You are not required to have an account in good standing to view Content that has been previously purchased on the VUDU Equipment. High speed Internet access is required to maintain the VUDU Service. The VUDU Service is only available, and content can only be downloaded, within the 50 States of the United States of America. When you order Content for rental, you will be granted a non-exclusive, non-transferable limited license to download and view one copy of the Content on a single in-home television within the exhibition period described below. When you order Content for purchase, you will be granted a non-exclusive, non-transferable limited license to download and view one copy of the Content on a single in-home television once or repeatedly, and to retain such copy.”