Source: Digital Media Wire 7/7/2008
FTC Settles with BurnLounge
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.
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