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BMG Direct Slapped With Class-Action Suit

By Erik Gruenwedel, L.A.
Publication: Billboard Bulletin
Date: Wednesday, June 12 2002
A Calabasas, Calif., consumer has filed a four-count class action against the BMG Direct record club. In the suit--filed Monday in L.A. Superior Court--Rafi Aghababian says he was charged excessive shipping and handling fees for seven CDs that were advertised as free on BMG Direct's Web site. In addition, Aghababian says he was charged sales tax on the shipping and handling charges. He claims such fees violate state consumer laws.

Aghababian seeks unspecified "treble damages" dating back four years and a change in the way BMG "does business," according to his lawyer. A BMG Direct spokesperson says the company does not comment on pending litigation.

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