Sirius XM faces a class action lawsuit over its controversial "US Music Royalty" fee, which adds 21.4% to subscribers' monthly costs beyond the advertised price. The lawsuit, filed in Washington state, challenges this pricing practice as deceptive.

The key issues at stake:

• The fee affects approximately 33.9 million subscribers
• In 2023, Sirius XM collected $1.36 billion in music royalty fees, exceeding their net profit of $1.26 billion
• The company advertises subscription prices with "plus fees and taxes" in smaller print
• Unlike state-mandated sales tax, this fee is created by Sirius XM

The lawsuit argues that:

• Reasonable consumers expect advertised prices to include fundamental service costs
• No other music services charge separate royalty fees above plan prices
• Sirius XM presents the fee as if it's government-mandated, when it's company-created
• Music royalties are a core business expense that shouldn't be an added charge

Legal Action and Demands:

• Plaintiffs seek an injunction requiring Sirius XM to include the royalty fee in advertised prices
• The lawsuit requests damages for affected subscribers
• Similar cases have been filed in Oregon and New York
• The lawsuit names subscribers in Washington and Florida as plaintiffs

While Sirius XM correctly states that music royalty rights are established by Congress through the Copyright Act, the lawsuit contends that companies using copyrighted works should incorporate these mandatory costs into their advertised prices rather than adding them as supplemental fees.

Related Articles

Previous Articles