Libraries are among the beneficiaries in the settlement of a class-action lawsuit over price-fixing by the nation’s five major record labels and three largest music retailers.
In the settlement, announced September 30, the companies agreed to give state organizations some 5.5-million CDs worth $75.7 million to distribute to schools, libraries, and other nonprofit groups, the New York Times reported October 1. They also agreed to refund $67.4 million to consumers who purchased CDs from 1995 to 2000 and eliminate policies that set minimum prices for advertised CDs.
The lawsuit, filed by 40 states in August 2000, claimed the music industry and retailers unlawfully colluded to keep the price of CDs artificially high through what are called “minimum advertised pricing” policies under which the major labels would subsidize advertising if retailers agreed not to sell CDs below a certain price.
The record industry defendants are the Bertelsmann Music Group, EMI Music Distribution, the Warner-Elektra-Atlantic Corporation, Sony Music Entertainment, and the Universal Music Group. The retailer defendants are Trans World Entertainment, Tower Records, and Musicland stores.
Posted October 7, 2002.