Its primary business was the BurnLounge online music store, and it was associated with Orbital Publishing, which produced printed matter for the company.
BurnLounge offered only music downloads, but other products such as audiobooks, video, ring tones, and physical merchandise were said to be planned.
Federal Trade Commission (FTC) filed a lawsuit on June 5, 2007, against specific BurnLounge participants for involvement in a pyramid scheme.
The FTC claimed that BurnLounge is a pyramid scheme because the company pays more money for recruiting new store owners than for selling music.
[17][18] In June 2014, the U.S. Court of Appeals unanimously upheld the ruling, declaring BurnLounge to be an illegal pyramid scheme.
Herbalife praised the ruling, saying that it clarified that its own business model does not fall under the appellate court's definition of pyramid scheme.
As of April 2019, the company's website hosted a teaser promoting BurnLounge 3.0 with the statement, "Get ready", which remained unchanged for over ten years.