Schools and libraries in the US can expect hundreds of free CDs in the coming months as the record labels fulfil their obligations relating to an anti-trust lawsuit that was settled out of court last December.
In that lawsuit, led by American consumer groups, 3.5 million consumers accused the major record labels and retail chains Best Buy, Circuit City, Target, Sam Goody, Musicland, and Tower Records of keeping the price of music artificially high between 1995 and 2000. The allegations centred on an "unfair" business practice where retailers "were discouraged from selling cheaper CDs because distributors withheld advertising reimbursements."
The labels and retailers agreed to settle out of court last year committing to pay a $143 million settlement. From that settlement all of the 3.5 million consumers who were listed on the petition will receive a thirteen dollar cheque. In addition the labels will distribute thousands of CDs to schools and libraries featuring artists such as Pearl Jam. Willie Nelson, Benny Goodman, Ella Fitzgerald, Frank Sinatra, Bruce Springsteen and Dizzy Gillespie.
In Washington State alone schools will receive 72,800 compact discs while a further 40,000 CDs will be given to state libraries - a musical package worth more than $1.5 million.