The Big Five settle price-fixing case

Discussion in 'Archived Threads 2001-2004' started by Brian Perry, Oct 1, 2002.

  1. Brian Perry

    Brian Perry Cinematographer

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    http://www.chicagotribune.com/busine...siness% 2Dhed
    One has to wonder whether the entire point of this lawsuit was to enrich a bunch of attorneys or to promote Spitzer's future career. $67 million to be paid to consumers who purchased CDs from 1995 to 2000 comes to what--about 2 cents per consumer? (Or less.)
     
  2. John Kotches

    John Kotches Cinematographer

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    Is this before or after the lawyers' fees?

    Regards,
     
  3. Brian Perry

    Brian Perry Cinematographer

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    John,

    I'm not sure. But Spitzer's quote said that consumers would see a "substantial" refund. Sure, $67 million, in and of itself, is certainly substantial. But when it gets split up into a billion pieces, I can't see it amounting to anything on a per-consumer basis. I've purchased over five hundred CDs over the last six years, and I'd be surprised if I were entitled to more than $10 (probably a coupon and only after filling out a mountain of paperwork...does anyone even keep receipts for CDs?).

    By the way, I don't even believe the Big Five are guilty of what they are accused. I'm just saying that it's a meaningless settlement for anyone other than Spitzer and the lawyers (and the defendants, of course).
     
  4. Brian Perry

    Brian Perry Cinematographer

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    The other thing that's fishy is the "5.5 million CDs valued at $75 million" that will be given to schools to promote musical education. Which CDs are these, exactly? The rejects no one wants? Even they were brand-new-in-demand CDs, valuing them at $13.76 per unit is very misleading. That would be the retail price, which is irrelevant in this case.
     
  5. Benson R

    Benson R Supporting Actor

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    What I don't get about all this is the record companies claim that they do this to benefit the smaller retailers. The record companies are right, they have no incentive to set a MAP since the their fee is the same irregardless. But I see no benefit to smaller stores. They have no choice but to sell at MAP because they need their advertising subsidized but the department stores don't need all the advertising material and then can still undercut the record store's prices.
     
  6. Lee Scoggins

    Lee Scoggins Producer

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  7. Thomas Newton

    Thomas Newton Screenwriter

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  8. Michael Reuben

    Michael Reuben Studio Mogul

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