An application by lawyers for pay-radio operator SiriusXM for a court to dismiss a Class Action which concerns allegations that the satellite broadcaster deliberately hid a 21.4 per cent ‘US Music Royalty Fee’ from subscribers, and where the accusation is of alleged deceptive pricing, has failed, and the Action can proceed.

A federal judge (District Judge Michael H. Simon) in his 17-page opinion ruled that the four Oregon-based plaintiffs may proceed with claims that SiriusXM violated Oregon’s Unlawful Trade Practices Act and breached its duty of good faith and fair dealing.

The claim is that SiriusXM promoted its music plans at rates excluding the additional US Music Royalty Fee. The claim argues that SiriusXM only disclosed this fee in small print or at the very end of the subscription process, if at all.

The claim also alleges that SiriusXM customer service representatives mischaracterised the fee as “government-mandated” or “required by law,” even though the company held onto the extra fee beyond what was paid in royalties.

Judge Simon wrote that SiriusXM’s handling of the fee may have exceeded what customers could reasonably expect under their subscription contracts. “A defendant’s voluntary cessation of a challenged practice does not deprive a federal court of its power to determine the legality of the practice,” Simon noted, and rejected SiriusXM’s claim that recent advertising changes made the case moot.

SiriusXM has faced a number of Class Actions. Some cases have settled, while others are ongoing.

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Categories: Articles, Broadcast, Digital Radio, Policy, Regulation

Tags: Class Action, Music, siriusXM