CDWow reverts to lower prices after CD row

6 Feb 2004

Low-cost online retailer appears to have found a loophole allowing it to keep its original prices while complying with a legal settlement that forces the company to source the CDs it sells from within the EU.

Last month it appeared that the web-based firm would have to add €3 to the cost of every CD as part of a legal settlement reached with the Irish Recording Music Association (IRMA). The music body had alleged that was sourcing CDs outside the EU and sued the internet firm for damages. typically sells music CDs for €13.95 with free postage – effectively up to €5 cheaper than some Irish music shops. It is thought that its low prices were due to the company’s ability to source CDs in cheaper markets such as the Far East. IRMA had alleged that in doing so, was in breach of European import regulations.

After last month’s settlement ended, the company indicated that it would be forced to sell its CDs for €16.95; the DVDs and console games the company also sells were not affected by the legal row.

The online seller’s UK store was also on the receiving end of similar legal moves by the British Phonographic Industry. However, after originally raising its prices following a settlement, CDWow has managed to revert to its previous pricing structure.

Beyond confirming that the price cuts had taken place, the company would not comment further on the move.

By Gordon Smith