James Delahunty
30 Jan 2007 17:18
Sony BMG has reached a settlement with the U.S. Federal Trade Commission (FTC) over the inclusion of copy protection software on millions of CDs sold by the label. Sony BMG is a joint venture of Sony Corp. and Germany's Bertelsmann AG. The deal will allow consumer to exchange CDs at issue and will reimburse consumers for up to $150 to repair any damage to their computers.
"Consumers' computers belong to them, and companies must adequately disclose unexpected limitations on the customary use of their products so consumers can make informed decisions regarding whether to purchase and install that content," FTC Chairman Deborah Majoras said in a statement.
Sony BMG reached a very similar agreement recently with 41 states and the District of Columbia, and no longer uses the software on CDs. "We are pleased to have reached this agreement with the Federal Trade Commission." The company said. The FTC said that Sony BMG broke the law because it disclose adequately that software would be installed.
Source:
Reuters