“All the while, Sirius XM silently and automatically renews their subscriptions month after month and year after year,” the complaint says.Īnd when a promotional rate expires-for example, a $5 monthly charge jumps to $17.99-the royalty fee increases accordingly, according to the filing. Once consumers “have been lured to sign up,” the company keeps them from from learning about its “scheme” by not sending periodic bills or receipts, the suit says. Its business model relies on converting these millions of vehicle buyers from free trial users into paid subscribers.

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. The company didn’t immediately respond to a request for comment. 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. 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. Sirius XM doesn’t mention the words “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.

advertises its music plans at deceptively low prices by hiding an invented “U.S.

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