New York - Digital music store technology provider BurnLounge, which last week was branded a pyramid scheme in a complaint filed by the Federal Trade Commission (FTC), announced on Thursday a "simplification of its business model" to address the FTC's concerns.

The company eliminated "network marketing," where users who paid fees to create their own digital music stores using BurnLounge were compensated when they got others to pay fees and set up additional stores.

The company intends to focus now on its free service, and says it will deliver increased rewards when sales of actual music and other goods are made through users' BurnLounge stores.

"Despite our strong disagreement with the FTC's complaint against the network marketing portion of the business, BurnLounge has voluntarily decided to make this bold move to show our commitment to our artists, partners, and independent retailers who have supported us from the beginning," said Grant D. Johnson, who became BurnLounge's new chief executive this week after founding CEO Alex Arnold resigned.

"Network marketing was a unique channel to promote our products, but not integral to the future success of the company and its retailers," Johnson added.

Related Links:
http://tinyurl.com/2856e7

http://www.ftc.gov/opa/2007/06/burnlounge.shtm

http://www.burnlounge.com