Federal Trade Commission Calls Burnlounge A Pyramid Scheme

The Federal Trade Commission filed suit last week alleging that Burnlounge is a pyramid scheme and that some of its largest retailers have misrepresented the income investors made with the company. One had  claimed that by last summer he had made almost $300,000.

Burnlounge sells downloads via custom stores set up by individuals who buy in and profit from a multi-level marketing style arrangement. For now at least, Burnlounge's download stores remain open and pacts with high profile partners like Live Nation remain intact.