SiriusXM Hit with $3.3 Million Penalty for Misleading Subscription Pricing

SiriusXM Hit with $3.3 Million Penalty for Misleading Subscription Pricing

Kelly Harris and Jane Huang

On June 5, 2024, the Competition Bureau announced that it had reached a settlement agreement with SiriusXM Canada over an investigation into SiriusXM’s drip pricing practices. The Bureau’s investigation found that SiriusXM’s advertised prices for satellite radio and streaming subscription services excluded mandatory music royalty and administrative fees.

These hidden fees increased the monthly costs of SiriusXM’s subscriptions by 10% to 20%. The advertising of these misleading prices were prominently displayed on SiriusXM’s website, promotional emails, and direct mail to consumers. SiriusXM cooperated with the Bureau’s investigation and settlement terms, agreeing to pay a penalty of $3.3 million and $30,000 in investigation costs. As part of its settlement agreement with the Bureau, SiriusXM has also agreed to stop drip pricing, ensure subscription plans are advertised at true prices, and implement new procedures and a compliance program to adhere to legal requirements.

This investigation demonstrates the Bureau’s commitment to ensuring that businesses uphold fair and transparent price advertising practices. A statement by Matthew Boswell, the Commissioner of Competition, highlighted the need for clear pricing by noting: “Canadians should be able to trust that the price they see is the one they pay. Consumers deserve clear and precise information without hidden fees. Businesses should ensure their prices are always displayed upfront.”

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Companies are encouraged to seek legal counsel to ensure compliance with applicable laws.

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