Wednesday, October 02, 2002

Price Fixing Settlement

A article, Labels pay to settle price-fixing suit, tells of a settlement in a case against record labels:
Under the agreement, record labels including Bertelsmann Music Group, EMI Music Distribution, Warner-Elektra-Atlantic, Sony Music Entertainment and Universal Music Group, along with retailers Transworld Entertainment, Tower Records and Musicland Stores, will pay consumers $67.3 million in cash and donate $75.7 million worth of CDs to charities and schools. However, the labels did not admit any wrongdoing.
The settlement involved a suit brought by State Attorneys General from 43 States, according to this report.

From the press release issued by Delaware's Attorney General, Jane Brady:
Attorney General Brady will designate how Delaware's cash portion of the settlement will be distributed. It is expected that she will direct donations, including approximately 16,000 CDs valued at $137,000, to be made to schools, libraries and other institutions. Brady commented, "This lawsuit and settlement demonstrate our commitment to halting corporate misconduct which causes our citizens to pay higher prices for goods, and distorts our free market economy."

Consumers will be able to claim single rebate payments, by telephone, mail or on-line, in a process to be announced in major publications at a later date. It is estimated that some 76 million Americans were impacted by this price fixing scheme.
For some reason, I'm guessing that the amount of each rebate might be just enough money to buy one CD.