SiriusXM sued for "deceptive pricing"

Channel98

Don't yell or hit.
Feb 2, 2019
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Glendale CA
The story from Inside Radio is linked below. Here are the highlights. And don't worry – SiriusXM will not charge you a U.S. Website Royalty Fee to read it.

"Two days after SiriusXM was served with a lawsuit brought by a pair of California attorneys alleging it has engaged in 'a deceptive pricing scheme,' the satellite broadcaster has been hit with a nearly identical complaint by three New Jersey lawyers. Both suits claim 'SiriusXM falsely advertises its music plans at lower prices than it actually charges' by not including the amount of the U.S. Music Royalty Fee in its advertised prices.” According to the complaints, this increases the true plan price by 21.4% above the advertised price.

The first suit was originally filed by Ayana Stevenson and David Ambrose in Contra Costa County Superior Court on April 14. SiriusXM on May 15 entered a motion to move the case to U.S. District Court in San Francisco. The second case, brought by attorneys Robyn Posternock, Muriel Salters and Philip Munning, was filed May 17 in U.S. District Court in Newark. Both seek class action status to represent all current and former SiriusXM subscribers in their respective states who paid a U.S. Music Royalty Fee within the applicable statute of limitations.

In both cases, the plaintiffs are seeking relief to protect the general public by putting an end to SiriusXM’s unlawful advertising scheme.' They also want the court to declare these practices unlawful under state law and to require the satcaster to hand over any profits it made as a result of this practice or to pay damages to the Plaintiffs and Class members 'in the amount of their overpayments.' They also seek a court order for SiriusXM to include the amount of the U.S. Music Royalty Fee in the music plan prices it advertises to the general public."

 

Kryptonite

Well-Known Member
Oct 21, 2008
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Are they going to sue every company which charges taxes? I'm sure SiriusXM has a "small print" mention of "not including music royalty fees plus other taxes applicable by law."

Hell, doesn't Disney charge sales tax on certain items? I'd love to see that mess unfold, given what's happening in Florida.
 

IdRatherBeSkiing

Sherbet is NOT and NEVER WILL BE ice cream.
Oct 11, 2008
27,449
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Toronto, ON
Music Royalty Fees are not taxes.

This will be settled as follows:
-- all lawyers will get their full fee in cash.
-- subscribers will get a coupon for $10 or something which can be applied to their account (not cash).
-- they will make the finer print bigger.
 
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Listener

Well-Known Member
Mar 21, 2023
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I agree that SiriusXM should include the royalty fee in its pricing. Hotels, airlines and auto dealers should also have to be more open about all their extra fees and taxes.
 

Kryptonite

Well-Known Member
Oct 21, 2008
11,772
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A lot of these taxes are "because they're charging us for credit cards, we'll charge you customers for using your credit cards."

Ticketmaster does this and my auto repair place as well.