{"id":1546,"date":"2024-06-27T16:43:36","date_gmt":"2024-06-27T16:43:36","guid":{"rendered":"https:\/\/usatrustedlawyers.com\/blog\/siriusxm-facing-class-action-lawsuit-over-deceptive-royalty-fees\/"},"modified":"2024-06-27T16:43:36","modified_gmt":"2024-06-27T16:43:36","slug":"siriusxm-facing-class-action-lawsuit-over-deceptive-royalty-fees","status":"publish","type":"post","link":"https:\/\/usatrustedlawyers.com\/blog\/siriusxm-facing-class-action-lawsuit-over-deceptive-royalty-fees\/","title":{"rendered":"SiriusXM Facing Class Action Lawsuit Over ‘Deceptive’ Royalty Fees"},"content":{"rendered":"\n
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\n\tSiriusXM is facing a class action lawsuit that claims the company has been earning billions in revenue by tacking a deceptive \u201croyalty fee\u201d onto consumers\u2019 bills.<\/p>\n

\n\tIn a complaint filed last week in federal court, attorneys for four aggrieved subscribers claim that SiriusXM adds a \u201cU.S. Music Royalty Fee\u201d \u2013 allegedly 21.4 percent of the actual advertised price \u2013 onto the normal price that users pay for satellite radio plans.<\/p>\n

\n\t\u201cThis action challenges a deceptive pricing scheme whereby SiriusXM falsely advertises its music plans at lower prices than it actually charges,\u201d attorneys for the users write. \u201cSiriusXM intentionally does not disclose the Fee to its subscribers. SiriusXM even goes so far as to not mention the words \u2018U.S. Music Royalty Fee\u2019 in any of its advertising, including in the fine print.\u201d<\/p>\n

\n\tThe lawsuit claims the royalty fee is an \u201cinvented\u201d charge that SiriusXM has \u201cdeceptively\u201d labeled to falsely suggest that it\u2019s mandated by the government to pay for music rights. In reality, the lawsuit says, it\u2019s a really just a \u201cdisguised double-charge for the music plan itself\u201d that no other competing music services imposes on their users.<\/p>\n

\n\t\u201cReasonable consumers would expect that the advertised price for SiriusXM\u2019s music plans would include the fundamental costs of obtaining the permissions necessary to provide the music content that SiriusXM has promised is included in those plans,\u201d lawyers for the subscribers say.<\/p>\n

\n\tAccording to the lawsuit, SiriusXM has reaped huge benefits from the \u201cunlawful advertising scheme\u201d since it was implemented in 2009, allegedly collecting $1.36 billion in such royalty fees in 2023 alone. In just in the states of Washington and Florida \u2014 the locations where the plaintiffs live \u2014 the lawsuit claims Sirius has collected $932 million in royalty fees since the charge was created.<\/p>\n

\n\tAnd, according to the complaint, SiriusXM allegedly tries its best to ensure that consumers never find out: \u201cSiriusXM\u2019s sign-up process, automatic renewal process, and policy of not sending monthly or ongoing billing notices or invoices are deliberately designed to prevent subscribers from learning of the U.S. Music Royalty Fee.\u201d<\/p>\n

\n\tThose allegations echo claims made by New York\u2019s attorney general, who sued SiriusXM in December over claims that the company made it \u201cextremely difficult\u201d for listeners to cancel their subscriptions. In a statement at the time, SiriusXM called those claims \u201cbaseless allegations\u201d that \u201cgrossly mischaracterize\u201d its customer service practices.<\/p>\n

\n\tThe new lawsuit was filed in the form of a proposed class action, aimed at eventually representing \u201cmillions of individuals\u201d who have allegedly paid the royalty fee after seeing a lower price advertised.<\/p>\n

\n\t\u201cTo be clear, plaintiffs are not seeking to regulate the existence or amount of the U.S. Music Royalty Fee,\u201d lawyers for the subscribers wrote. \u201cRather, plaintiffs want SiriusXM to include the [fee] in the music plan prices it advertises to the general public.\u201d<\/p>\n

\n\tA representative for SiriusXM did not immediately return a request for comment on Thursday.<\/p>\n

\n\tRead the entire lawsuit here:<\/strong><\/p>\n