Antitrust case entitles Iowans to file for CD refunds
February 13, 2003
All Iowans who purchased compact discs between 1995 and 2000 may be entitled to a refund of up to $20.
Iowa Attorney General Tom Miller and the Iowa Department of Justice recently released a consumer advisory bulletin that urges Iowans who have purchased prerecorded music to file a claim with the department. Each person who files a suit could receive a refund of up to $20.
Those who have purchased prerecorded music products, including CDs, cassettes and vinyl albums, from one or more retailers between Jan. 1, 1995, and Dec. 22, 2000, are entitled to the refund.
There is about $44 million in funds to distribute nationwide. The refunds will range from $5 to $20, depending on how many people file a claim.
Bob Brammer, spokesman for the Iowa Attorney General’s office, said one-third of all CD buyers are young people. He said it is easy to file a claim.
“I can’t emphasize how easy it is [to apply for the refund],” Brammer said. Claims can be sent to the Iowa Department of Justice through the mail, via the Internet or by phone.
Brammer said at least 8.8 million people have to file a claim before the refund amount drops below $5. If that happens, the money will go to charitable, nonprofit and public organizations, he said. Brammer said as of Monday, only three million have applied for the refund.
The basis for the refunds is an antitrust case, in which Iowa and other states alleged the nation’s top distributors of recorded music and three large retailers entered into illegal conspiracies to raise the price of CDs and other recorded music, according to the consumer advisory.
The suit alleges the defendants acted illegally to stop other retailers from offering CDs at discount prices. Legal action is aimed at restoring competition in the industry, according to court documents.
A handful of widely known record labels are named in the lawsuit, including BMG Records, Capital Records, Sony Records, Virgin Records and Warner Bros. Records.
Media representatives for Sam Goody/Suncoast Entertainment declined to comment, citing a conflict of interest.
ISU student David Rutledge said he purchased the majority of his CDs between 1995 and 2000. Rutledge estimates he bought between 200 and 300 CDs, ranging in price from $10 to $17. He said learning about the record labels’ overpricing of CDs doesn’t surprise him and may even justify electronic copying of CDs.
“I don’t feel bad for burning CDs now. What goes around comes around.” said Rutledge, junior in finance. “I think you have to be a big fan of certain groups to go out and buy a CD anymore.”
Rutledge said it only took him two minutes to file his claim online.
Proof of purchase is not required to file a claim. Claimants will be asked for their name and address, date of birth and the last four digits of their Social Security Number. Information will be kept completely confidential. Claims also may be filed by businesses and on behalf of persons who have died, according to the consumer advisory.