Source: TechWhack 7/3/2007

BurnLounge Reaches Compromise Injunction with FTC

Order Allows Company to Continue Operation of New Model Unimpeded

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."

View BurnLounge Review

Related News

  • 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, a New York online music store operator that attracted many investors from the Columbia area.The Federal Trade...  Read More...
  • 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 you set up your own online storefront to sell up to 50 DRM-free albums from a decent range of high-quality electronica, ro...  Read More...
  • 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 scheme, has settled charges and agreed to give up $20,000 in ill-gotten gains.The FTC charged BurnLounge in June 2007 wit...  Read More...
  • 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 reaction to BurnLounge was anything like mine, you quickly became frustrated by chirpy, overenthusiastic strangers infiltra...  Read More...


BurnLounge News Archive

New Companies on Npros

Receive News and
Updates from

 Send me news updates
 Send me New Companies

RSS Npros News Feed