Monday, February 16, 2009

FTC Settles with BurnLounge

Source: Digital Media Wire

"The Federal Trade Commission (FTC) has announced that one of the operators of BurnLounge, a digital music distribution service the agency had determined was actually a pyramid scheme, has settled charges and agreed to give up $20,000 in ill-gotten gains.

The FTC charged BurnLounge in June 2007 with operating a pyramid scheme, where consumers were recruited to operate their own online digital music stores -- but instead of selling music, money was made mainly through signing up new store operators at $29.95 to $429.95 per year.

A federal court ordered BurnLounge to halt its network marketing scheme, and froze the defendants' assets. "

Digital Media Wire : Source Link

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