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

The core issues of the lawsuit include:

• 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
• Plaintiffs argue that music licensing costs should be included in the base subscription price, as other streaming services do

While Sirius XM maintains that these music royalty rights were established by Congress through the Copyright Act, the lawsuit contends that presenting these costs as an additional fee is misleading, as they are fundamental business expenses.

Key lawsuit demands:

• Force Sirius XM to include the music royalty fee in advertised subscription prices
• Seek damages for affected subscribers (amount to be determined in court)
• Similar lawsuits have been filed in Oregon and New York

The case highlights a broader debate about pricing transparency in subscription services and whether essential operating costs should be presented as separate fees to consumers.

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