The Competition Bureau reached an agreement with SiriusXM Canada to address concerns over subscription price representations.
A Bureau investigation concluded that, outside the province of Quebec, Sirius advertised their satellite radio and streaming subscription plans at prices that are not attainable due to an additional mandatory fee, a practice known as drip pricing.
The Bureau determined that consumers could not buy subscription plans at the represented price because they were required to pay a Music Royalty and Administrative Fee. This additional mandatory fee increased the monthly cost of a plan by 10% to 20%.
The Bureau concluded that the company promoted its subscription services on its website, as well as in promotional emails and direct mail sent to Canadians.
As part of an agreement registered with the Competition Tribunal, Sirius agreed to:
- pay a $3.3 million penalty and an additional $30,000 for the costs of the Bureau's investigation;
- not engage in drip pricing, nor promote subscription plans at prices that are not attainable and;
- enhance its compliance program and implement new procedures to comply with the law
The Bureau acknowledges Sirius' cooperation during its investigation, as well as its voluntary compliance in relation to concerns over subscription price representations.
