Regulation & law
BurnLounge case (2014)
A court decision upholding the FTC's finding that BurnLounge was a pyramid scheme.
The Ninth Circuit's 2014 decision in FTC v. BurnLounge affirmed that the company's music-store scheme was a pyramid, focusing on whether rewards were tied to recruitment rather than product sales to ultimate users. It is the most cited modern application of the Koscot test.