KOMO-TV, Seattle
February 19, 2004
By Connie Thompson

SEATTLE - It's seven months late, but finally, the checks are in the mail!

We're talking about the refund checks from the big CD price-fixing settlement.

Consumers were supposed to get their refunds last July, but money back is not the only promise the government made.

The settlement fell under the radar of a lot of consumers, but Sang Cho of Lake Forest Park is ready for his share.

Under the terms of the settlement, just over $67 million in cash goes to consumers. And more than $75 million worth of CDs goes to schools, libraries and other groups -- of which $1.5 million go local groups.

The consumer payback part comes to $13.86 a person. The 213,000 that filed for the claim in our state should get their checks within the next week or so.

But what about reason for lawsuit in the first place?

When the feds sued four years ago, they claimed the industry was overcharging us and that the settlement would lower CD prices by as much as $5.

We checked around, and distributors and retailers have dropped prices.

For example, Nora Jones' new release "Feels Like Home" is $11.99 at Circuit City, $14.99 at Target and $13.99 at Tower Records -- all much better than they typical new release price four years ago.

And there's more fluctuation.

Melissa Etheridge's "Lucky" is $10.99 at Circuit City, $11.99 at Tower and $14.99 at Target. But you can still pay close to $20 at some other locations.

Josh Groban's "Closer" was $12.99 at Circuit City, $14.99 at Target and $18.99 at Tower.

But industry experts say lower prices are probably more due to competition from the Internet and consumer downloading than the price fixing lawsuit.

Sang Cho says whatever the reason, and whatever the refund, he's glad to see the system work for the consumer -- even if it's 7 months late.

"You know, I spent the time to fill out all the forms and follow it through, so I'll take it," he said.

Links:
http://www.komotv.com/stories/29891.htm
www.musiccdsettlement.com