BurnLounge and FTC Reach Compromise
Since the FTC filed its complaint, BurnLounge announced that it would abandon the "network marketing" aspect of its business model, where customers were rewarded when they recruited others to sign up and pay BurnLounge fees to create their own digital music stores. The company's CEO Alex Arnold, one of the defendants named in the FTC complaint, also resigned.
"Network marketing was a unique channel to promote our products, but the strategic decision to voluntarily remove this part of our business was the right decision on all fronts," said BurnLounge CEO Grant D. Johnson.
More BurnLounge news
BurnLounge Founder Rob DeBoer Launches cPrime
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...
Burnlounge Lawsuit in Hands of US Judge
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 in Wired News
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...
FTC Settles with BurnLounge
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...
BurnLounge on Wired Blogs
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...