Sirius XM Hit With Suit Over Allegedly Deceptive Music Pricing

Sirius XM Radio Inc. advertises its music plans at deceptively low prices by hiding an invented “U.S. Music Royalty Fee” that increases a plan’s true cost “by a whopping 21.4% above the advertised and promised price,” a new proposed class action alleges.

Sirius XM doesn’t mention the words “U.S. Music Royalty Fee” in any of its advertising, “not even in the fine print,” plaintiffs Christopher Carovillano and Steven Brandt allege in a suit filed Monday in the US District Court for the Southern District of New York.

The company’s only disclaimer is that “Fees and taxes apply,” but reasonable consumers “wouldn’t expect Sirius XM to charge such a fee, let alone hide it as ‘Fees and Taxes,’” they allege.

The company didn’t immediately respond to a request for comment.

Satellite radios are pre-installed in 84% of the more than 13 million new automobiles sold each year in the US, and vehicle buyers are automatically provided a free 3- to 6-month trial of Sirius XM service, the complaint says.

Read full story at Bloomberg