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The Deseret News reports that receipts are not needed to participate
in the rebate. For more information, visit deseretnews.com.
Settlement
in compact disc lawsuit nets Utah money, free music.
SALT
LAKE CITY (AP) _ Utah is one of 42 states that settled a lawsuit
Monday against music distributors and retailers for allegedly
conspiring to inflate the price of popular music, according
to the state Attorney General's Office.
An antitrust
lawsuit filed in federal court in Aug. 2000 claimed that some
music stores were prohibited by distributors from selling
popular compact discs at discount prices. Retailers who didn't
comply could have lost millions in advertising funds from
the distributors, investigators said.
The defendants
deny the allegations.
On Monday
five music distributors and three retailers agreed to a settlement
that requires them to pay $67,375,000 to consumers and charities.
The groups also will donate 5,541,000 compact discs to the
state attorneys general which will distribute the music to
groups such as schools and libraries.
In Utah,
consumers will be able to file for a refund of between 50
cents and $1 on CDs purchased. The total amount available
for Utah refunds is $525,000, said Assistant Attorney General
Wayne Klein.
In addition,
state libraries and schools will get 43,358 compact discs
worth about $592,325, he said.
The donated
music will increase the number of CDs in libraries by 12 percent,
said Amy Owen, state library division director.
About
one-third of the state's libraries now have fewer than 100
CDs.
"These
CDs will have a tremendous impact for us," she said.
Matt
Limburg, owner of Starbound Records in West Valley City, said
the settlement should make music cheaper for the buyer. He
said in the past a Bob Dylan CD might cost him between $7.50
and $8.50 and he was required to sell it for $9.99 because
of minimum advertised pricing policies. Now he said the CD
may cost $5.45, and he's selling it for $7.99.
That's
a $2 savings for consumers.
He said
in the past distributors would threaten to withhold advertising
money from merchants who sold compact discs at lower prices.
"This
has been a tough year in the music industry," he said.
"The consumer just isn't ready to pay a lot of money
for a CD. Anytime consumers can get better prices we'll get
more people into the store."
The settlement
was reached between the attorneys general of 42 states and
three territories and the defendants _ Bertelsmann Music Group,
Inc., EMI Music Distribution, Warner-Elektra-Atlantic Corp.,
Sony Music Entertainment Inc., Universal Music Group Inc.,
and national retail chains Transworld Entertainment Corporation,
Tower Records and Musicland Stores Corporation.
(Copyright
2002 by The Associated Press. All Rights Reserved.)
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