Northwestern University and Evanston's Only Daily News Source Since 1881

The Daily Northwestern

Northwestern University and Evanston's Only Daily News Source Since 1881

The Daily Northwestern

Northwestern University and Evanston's Only Daily News Source Since 1881

The Daily Northwestern


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Lawsuit offers money to jipped CD buyers

Quick — rifle through your compact disc collection and find three you bought between 1995 and 2000 — a cast-off Oasis album, or maybe Britney Spears’ “… Baby One More Time.”

Don’t be ashamed, they’re all worth something again. The search may have netted you $20.

In September, the attorneys general of 43 states filed a lawsuit against various music companies, claiming that they illegally raised CD prices between 1995 and 2000 by setting a minimum selling price.

“When I began in 1994, new releases sold for $11.99,” said George Drag, manager of Wherehouse Music, 1711 Sherman Ave.

Since then, prices have jumped to anywhere from $14 to $18 because, as Drag said, “we’re at the mercy of the record companies.”

The companies, including Capitol Records, Time Warner and Sony Music, denied jacking up prices. But instead of going to court, they agreed to a settlement.

Under the terms, the companies must give $45 million to consumers who have purchased music during the five years. They also are required to donate 5.5 million CDs to various nonprofit organizations and charities that the attorneys general will choose.

Customers can submit a request for reimbursement by filling out a form on the suit’s Web site, www.musiccdsettlement.com. No proof of purchase is needed, just a list of what CDs were bought.

The catch is that if more than 8.8 million people file a claim — meaning that each person would receive less than $5 — no one receives a reimbursement. Instead, the designated money would go to the same charities that get the CDs.

However, that seems unlikely, according to the lawyers who filed the suit. At last count, only 900,000 claims had been filed. The deadline is March 3.

“I would imagine that many (people), like me, are simply unaware,” said Northwestern Music Prof. Scott Lipscomb. “You can bet that the major record labels are going to make very little effort to promote this ‘giveaway.'”

That leaves promotion to the attorneys who filed the lawsuit. So far, they’ve placed advertisements in USA Today, Seventeen and Rolling Stone.

But a recent radio campaign, along with increased media coverage, has boosted the number of claims filed, one lawyer said.

“Once several news organizations picked the story up, we saw a major increase,” said Blake Harrop, an assistant attorney general for Illinois.

Despite the tempting prospect of “free” money, some students said they feel shafted by the meager compensation. No matter how many CDs were purchased during the time in question, the most anyone can receive is $20.

“I have probably bought most of my music collection in the past six years,” said Daniel Kohler, a Communication freshman who said he has filed a claim. “Where’s the rest of my money?”

Although there’s no easy solution in sight for people in Kohler’s situation, the lawsuit may put a hold on CD price increases, Harrop said.

“It won’t necessarily lower prices, but it will at least slow the rate of increase,” he said.

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Lawsuit offers money to jipped CD buyers