BurnLounge in legal trouble with FTC complaining against it

The U.S. Federal Trade Commission has announced that they have now filed a complaint against the digital music service BurnLounge in the courts.

The compliant has been filed with the U.S. District Court for the Central District of California and the FTC is claiming that the music service is operating an illegal pyramid scheme.

They are asking the courts to permanently shut down the service. FTC added in its complaint that BurnLounge recruited customers through the Internet, telephone calls and in-person meetings and told them that they could make substantial income if they would buy one of its product packages. These packages are usually cost ranging from US $29.95 to $429.95 per year.

BurnLounge has responded to this legal challenge by issuing a press release stating: “BurnLounge will continue to afford its customers the opportunity to enjoy sharing their tastes in music and films, while providing an avenue for them to express their entrepreneurial talents.”

The service allows their customers to open up their own digital music stores and sell music and movies. FTC claims that the service primarily provides payments to the customers for getting more people to join their service program.

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