SiriusXM Fined $3.3 Million for Deceptive Pricing Practices for Subscriptions

SiriusXM Canada has agreed to pay a $3.3 million penalty for charging customers more than was advertised for satellite radio service, a practice known as drip pricing.

The Bureau says the investigation found the company had practiced drip pricing in provinces excluding Quebec, by advertising a subscription plan, but then adding on extra fees such as a music royalty and administrative fee that were not indicated in the advertised price.

With the extra costs added on, subscriptions were 10 to 20 percent higher than the price advertised, the release said.

“Canadians should be able to trust that the price they see is the one they pay,” Commissioner of Competition Matthew Boswell said in the release.

“Consumers are entitled to clear and precise information, and should never be surprised by hidden or additional fees. Businesses should review their marketing claims and make sure their prices are always displayed upfront.”

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The subscription price was promoted on SiriusXM’s website and in promotion emails and direct mail campaigns.

Sirius has also agreed to pay an additional $30,000 for the cost of the investigation.

The company has also agreed to not engage in drip pricing, and put new procedures in place that comply with the law, the release said.

The government says that Sirius cooperated during the investigation and has voluntarily complied with the findings.

The Bureau has previously found other companies engaged in drip pricing practices.

The company was found to have charged fees that added 38–53 percent to the advertised price.

TicketNetwork was also said to advertise prices in American dollars without identifying the currency difference.

The company agreed to a fine of $825,000 and to avoid the practice in the future.

Drip Price Warning

The Bureau said it was trying to crack down on the practice of drip pricing, and issued a public advisory to educate consumers.

The advisory said signs of drip pricing were when the price you see is not the same as the one you pay or the true total cost is not displayed.

“You shouldn’t have to scroll down or read the fine print to find the total price of an item,” it said.

Additional charges that are not imposed by the government, like sales tax, are another warning of drip pricing.

Consumers who suspect a business of using the practice are advised to report it to the Bureau.