Under the settlement, Cashier Myricks of Los Angeles is barred from making misrepresentations about P2P file-sharing products or services, the FTC said in a statement. He also must disclose the civil and criminal liability risks of downloading copyrighted material without the owner's permission and refund more than US$15,000 to the 611 customers he duped into buying memberships, the FTC said.

In September 2005, the FTC filed suit in federal court charging that Myricks used his mp3downloadcity.com Web site to market and sell a tutorial and referral service that promoted the use of P2P file-sharing software programs to download digital music, movies and computer games.

However, the defendant's service did not provide its paying customers with a license to download and share copyrighted music, movies, or games. Instead, for $24.95, the defendant told users how to use free P2P file-sharing software provided by others, the FTC said.

According to the FTC's complaint, Myricks enticed users to become members by making the deceptive claim that subscribing to the defendant's service made P2P file-sharing "100 percent legal."

According to the FTC statement, the defendant's customers who used P2P file-sharing programs to download copyrighted material, or who made it available to others, without the copyright owner's permission, were engaged in copyright infringement that could subject them to civil and criminal liability.