Music buyers in the USA can expect an unusual financial windfall. Because they are alleged to have illegally fixed prices, record companies paid back nearly 50 million dollars to their customers.
Leading music corporations sent out over three million checks to customers in the USA last Friday. Five major record labels must compensate consumers across the country because they are said to have engaged in illegal price fixing. According to the conviction of the justice authorities from 43 US states, the prices of CDs, cassettes, and records rose between 1995 and 2000 because the corporations agreed on minimum prices.
Although the affected companies - Sony, EMI, Warner, Universal Music, and Bertelsmann Music Group - denied the allegations, they agreed to a multi-million dollar settlement. They will pay a total of 47.4 million dollars to consumers who have submitted a corresponding claim; additionally, they must provide schools and libraries with CDs worth 77 million dollars. However, individual customers will only receive 13.86 dollars each in compensation.
Source: Spiegel Online
Leading music corporations sent out over three million checks to customers in the USA last Friday. Five major record labels must compensate consumers across the country because they are said to have engaged in illegal price fixing. According to the conviction of the justice authorities from 43 US states, the prices of CDs, cassettes, and records rose between 1995 and 2000 because the corporations agreed on minimum prices.
Although the affected companies - Sony, EMI, Warner, Universal Music, and Bertelsmann Music Group - denied the allegations, they agreed to a multi-million dollar settlement. They will pay a total of 47.4 million dollars to consumers who have submitted a corresponding claim; additionally, they must provide schools and libraries with CDs worth 77 million dollars. However, individual customers will only receive 13.86 dollars each in compensation.
Source: Spiegel Online
