When music stores accept money from major record labels to help advertise their hottest compact discs, the retailers also agree to a minimum sales price for those CDs. Federal regulators are looking into whether this widespread industry practice amounts to price fixing.
The probe by the Federal Trade Commission is one of two by the government into major recording companies,The FTC notified recording companies last month that it was opening a preliminary inquiry into their so-called minimum advertised price programs, lawyers confirmed.
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Those programs give retailers advertising assistance in exchange for agreeing to a minimum price for CDs.