BurnLounge Reaches Compromise Injunction with FTC
BurnLounge, the world's first fan driven digital download community, has come to a cooperative agreement with the Federal Trade Commission based on its recent decision to eliminate the network marketing portion of its business.
"This is the first time in recent history that any company has emerged from such charges by the FTC and survived entirely intact," said D.J. Poyfair, a partner from Shughart Thomson & Kilroy and lead outside counsel for BurnLounge. He added, "The Judge's ruling allows the company to continue to move forward with its new model unabated and unrestricted."
"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 Grant D. Johnson, chairman and chief executive officer, BurnLounge. "With this hearing behind us, we are aggressively moving forward and will focus on our new free model to help fuel the next evolution business growth to better benefit our employees, artists, partners and independent retailers."
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