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Collect $20 Refund in CD Price-Fixing Settlement
Netlore Archive:  If you bought any music CD, cassette tape or vinyl album between 1995 and 2000 you are eligible to file a claim and receive a refund of up to $20 in a class action settlement

Description:  Email rumor
Status:  True
Circulating since:  Jan 2003
Analysis:  See below
 


Email example contributed by J. Johnson, 9 January 2003:

Subject: Want a free $20?

As some of you may or may not have heard, the recording industry (particularly the CD production big-wigs) were recently found guilty of price-fixing. Due to this verdict, the companies will be returning over $67 million dollars to the CD purchasing public. If you bought a CD from January 1, 1995, through December 22, 2000 you are eligible to file a claim and receive up to $20 back. You can only file one claim per person but as many as you want per family. The link to read about this legislation in its entirety along with the online form to sign up if you want money back is here:

http://www.musiccdsettlement.com/english/default.htm

You're only entitled to money back if you sign up. You have until March 2003 to read it over for yourself and file if you're interested; after that no new claims will be accepted.

Finally one for the little guy!



Email example contributed 7 January 2003:

Hey everybody.... I was just reading the newspaper when I read about a settlement the federal government has going with the music industry. Apparently there was a HUGE music industry price fixing scam going for the last six years, and as part of the settlement, they are offering a cash settlement to...get this...everyone that purchased a CD from 1995-2000 in a major store. Which I think is just about everyone I know. So here's the deal. If you go to this web site and fill out a claim form, you are eligible. If enough people respond and the divided amount gets below $5 per person, they will donate the money to charity (almost as good as getting it for yourself.) This isn't a scam (you can read about on the AP) and I promise you I checked it out to make sure it isn't.

Just thought I would share some money with my friends.

http://www.musiccdsettlement.com/english/default.htm


Comments:   True.  Any person who purchased one or more "prerecorded music products" (CDs, cassette tapes or vinyl albums) in the United States between 1995 and 2000 is eligible for a cash refund of up to $20 under the terms of an antitrust settlement between state governments and a group of music companies accused of price-fixing. Filing a claim is as simple as filling out an online form, according to a special Website set up to distribute the settlement.  No proof of purchase is required.

The actual amount of individual cash settlements will depend on how many claimants there are to split the $44 million pot. Under the best-case scenario each person would receive the $20 maximum, but a high number of claims could reduce that figure to as little as $5. Worst-case scenario: the pot is divided by more than 8.8 million people and individual shares drop below $5. In that event, officials say, the distribution would be canceled.

All claims must be filed by March 3, 2003.

Last updated: 01/09/03


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Sources and further reading:

CD Litigation Settlement Website
Complete information and online form for filing a claim

Settlement Is Music to CD Buyers' Ears
CBS News, 1 Oct 2002

Few Takers for CD Music Settlement Cash
Wired News, 7 Jan 2003


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