Guitar Center has been accused of price-fixing guitars in a national class-action lawsuit that was filed in court yesterday, as Hagens Berman Sobol Shapiro, a law office, is claiming that Guitar Center joined up with NAMM (the National Association of Music Merchants) to try to force guitar companies into not selling their products for cheap online, and to threaten boycotts of companies who did.
“Guitars and other fretted instruments comprise a multi-million dollar industry in the United States alone, and one that’s heavily influenced by a handful of industry giants like Guitar Center,” said Steve Berman, lead attorney and managing partner at Hagens Berman Sobol Shapiro. “We contend that, even with its market domination, the company acted illegally to rig the marketplace to its benefit."
It wasn't publicized how much the suit is for, but it could seriously damage Guitar Center, essentially the Wal-Mart of instruments. [Daily Swarm]
But I'm guessing most Guitar Center employees don't care, since they're just working there until their bands take off*.
*- Am I right? Doesn't it seem like every person you talk to there has some band that is "about to take off?" I've only been there twice, and both times I talked to guys in "Nickelback-esque" rock bands who are going to be moving to California to get famous.