Overview, company details, product information, news, events, rankings and Rep listings for BurnLounge.
BurnLounge was an online digital music store/business opportunity. Participants could become “Independent Retailers” selling music and merchandise, and some paid extra to become “Moguls” who could earn cash rewards. The Ninth Circuit summarized the business that way and upheld the finding that BurnLounge’s MLM operation was an illegal pyramid scheme.
The FTC sued in June 2007, alleging that BurnLounge sold “product packages” priced from $29.95 to $429.95 per year, made income claims, and primarily compensated participants for recruiting new participants rather than retail product sales.
The final judgment was substantial. The court entered judgment against BurnLounge and CEO Juan Alexander Arnold jointly for $16,245,799.70, intended for consumer reimbursement, with additional disgorgement judgments against other defendants.
Original Npros business profile for BurnLounge, preserved below for archival purposes:
BurnLounge is a replicated digital music store. Each operator's music store has the same look and feel, and all carry the BurnLounge brand. All also have access to the BurnLounge digital music library and pricing system powered by Loudeye. Operators may choose which bands or songs to feature on the home page as well as create customized playlists.BurnLounge subscription levels include Fan, Affiliate, and Music Mogul.
Ryan Dadd, Co-Founder, President / COO
Alex Arnold, Co-Founder and CEO
Stephen Murray, Co-Founder
According to FitsNews.com, former Burnlounge founder Rob DeBoer is now launching a new venture called cPrime which markets magnetic wristbands to athletes, claiming they will help them perform better athletically...From FitsNews.com: 'Three years after he was implicated in the BurnLounge pyramid scam (a racket that was busted up by the Federal Trade Commission), former University of South Carol...
The federal lawsuit that alleges former USC football star Rob DeBoer was involved in the pyramid scheme is in the hands of a judge.Testimony recently ended in the case over Burnlounge, a New York online music store operator that attracted many investors from the Columbia area.The Federal Trade Commission sued Burnlounge executives and top recruiters, claiming the business was a pyramid schem...
Have you ever wanted to be a snarky record store clerk like the ones in High Fidelity, recommending the choicest cuts to a grateful and adoring public? People's Music Store lets you set up your own online storefront to sell up to 50 DRM-free albums from a decent range of high-quality electronica, rock and other music. The store won't earn you money, but it could earn you respect, plus ability to d...
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 mus...
You may remember a site called BurnLounge, which charged users upfront for a chance to make money selling other peoples' music, like a digital music version of Amway.If your reaction to BurnLounge was anything like mine, you quickly became frustrated by chirpy, overenthusiastic strangers infiltrating your favorite spots on the internet to hammer you with links to lame bands, subverting the norm...
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