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 price. The lawsuit, filed in Washington state, challenges this pricing practice as deceptive.

The satellite radio company collects this fee from approximately 33.9 million subscribers, generating $1.36 billion in 2023 – exceeding their net profit of $1.26 billion. While Sirius XM advertises subscription prices with "plus fees and taxes" in smaller print, the lawsuit argues that reasonable consumers would expect fundamental music costs to be included in the advertised price.

Key points of contention:

• No other music services charge separate royalty fees above their advertised prices
• The fee is presented as if government-mandated, but is company-created
• While music royalty rights are established by Congress, the lawsuit argues that making them an extra charge is unjustified
• The practice particularly affects subscribers in states with no sales tax, like Oregon

The lawsuit seeks:

• An injunction requiring Sirius XM to include the music royalty fee in advertised prices
• Damages for affected subscribers (amount to be determined in court)

Similar lawsuits have been filed in Oregon and New York, with named subscribers from Washington and Florida in the current case. The plaintiffs emphasize they support fair compensation for artists but argue that music licensing is a core business expense that shouldn't be presented as an additional fee.

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