SiriusXM Facing Lawsuit Over Allegedly “Deceptive” Royalty Fee

A group of angry consumers claim the satellite radio giant SiriusXM has been adding an allegedly misleading “U.S. Music Royalty Fee” that jacks up prices above what’s allegedly advertised. In a complaint filed last week in federal court, attorneys for four aggrieved subscribers claim that SiriusXM allegedly adds a “U.S. Music Royalty Fee” — allegedly 21.4% of the actual advertised price — onto the normal price that users pay for satellite radio plans.

According to a source from billboard.com, “This action challenges a deceptive pricing scheme whereby SiriusXM falsely advertises its music plans at lower prices than it actually charges,” attorneys for the users claimed. “SiriusXM intentionally does not disclose the fee to its subscribers. SiriusXM even goes so far as to not mention the words ‘U.S. Music Royalty Fee’ in any of its advertising, including in the fine print.”

SiriusXM also faced some other legal problems. In an alleged complaint filed on December 20, Attorney General Letitia James’s office had accused SiriusXM of allegedly subjecting canceling customers to “a lengthy and burdensome endurance contest,” which allegedly requires phone conversations with a live agent and an extended time being put on hold.

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