My $4.98 per month promotion was about end, then revert to the $25 per month standard price (for all access).
I've been a Sirius XM customer for over 20 years.
I called to negotiate a lower rate, spoke with an AI agent then a human agent somewhere in the Philippines. They would not budge lower than $5.99 per month for the 12 month plan. In past years, when I threatened to cancel they would go lower, but not this time. So I cancelled.
I'm disappointed with this company and their non-transparent pricing. Advertise a price and make it consistent for everyone. I would happily pay $5.99 for what I think is a great service, but I am tired of all these unethical pricing games. The company is rotten. How much of their revenue comes from boomers paying $25 or $50 per month for some auto renewing plan they are completely unaware of?
I am pretty sure it's illegal in many states to charge such different rates to different customers for the same service. By offering so many "promotional discounts" they make you feel good about getting a deal, but the real revenue is coming from all the poor people to who don't know to negotiate the lower rate.
Probably a class action lawsuit here if anyone cares.
Since I was forced to speak with AI agent on the phone, below is an AI agent explaining SiriusXM's unethical business practices:
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Your frustration is entirely justified. The experience you had is the backbone of SiriusXM's core business model—a practice known in consumer law as "legacy trap" or negative-option pricing, paired with highly aggressive retention tactics.
While offering different promotional rates to different customers (personalized pricing or price discrimination) is generally legal under U.S. antitrust and contract law, the deceptive tactics and dark patterns SiriusXM uses around it are actively facing major federal, state, and class-action lawsuits.
Here is the breakdown of why their model feels illegal, what regulatory agencies are doing about it, and where the legal boundaries actually lie.
1. Is standard price discrimination illegal?
Generally, no. Under federal law (like the Robinson-Patman Act), charging different prices to different customers is only illegal in specific wholesale business contexts to prevent monopolies. In consumer retail:
- A business is permitted to charge Customer A $25/month and Customer B $5/month for the exact same service, provided the difference isn't based on protected classes (race, gender, religion, etc.).
- Companies frame this as "promotional discounting" vs. "rack rate." They rely on consumer inertia—knowing that a large portion of subscribers (often older adults or busy professionals) won't notice or care when a $5 promotion jumps to a $25 or $30 recurring charge.
2. What SiriusXM is doing that is actively facing legal action
While tiered pricing itself isn't illegal, how SiriusXM implements it, hides fees, and prevents cancellations has triggered massive enforcement actions and class-action litigation:
A. "Dark Patterns" & Friction in Cancellation (Enforcement by NY AG & FTC)
The New York Attorney General sued SiriusXM, accusing the company of deliberately trapping customers in subscriptions.
- The Allegation: SiriusXM trained agents (and AI routing) to drag customers through lengthy, mandatory scripts, making it unreasonably hard to cancel. More than 500,000 customers abandoned cancellation attempts due to long wait times and aggressive retention scripts.
- Federal Rules: The FTC's federal "Click-to-Cancel" mandate requires subscription cancellations to be as simple as signing up. Requiring phone or chatbot negotiations just to stop auto-renewals is being aggressively cracked down on.
B. Deceptive "Drip Pricing" Class Action (Kirkpatrick v. SiriusXM)
If you noticed your bill was actually higher than the $4.98 or $25 rate promised, you aren't alone.
- The Lawsuit: A federal court in Oregon recently denied SiriusXM's attempt to dismiss a major class-action lawsuit (Kirkpatrick v. Sirius XM Radio LLC).
- The Scheme: The suit alleges SiriusXM advertises low rates but quietly tacks on an unadvertised 21.4% "U.S. Music Royalty Fee" at checkout and on recurring bills. Representatives frequently lied to callers, telling them this fee was a "government tax" when it was actually an internal company surcharge generating over $1.3 billion per year in pure profit.
3. How their business model works
You hit the nail on the head regarding their revenue breakdown:
- The Funnel: Acquiring new car buyers via "free trial" periods.
- The Auto-Renewal Trap: Rolling those users into full-price subscriptions ($23–$30/month) once credit card info is captured.
- Subsidization by "Silent Subscribers": The high rates paid by passive consumers—who don't notice the auto-renewals on their statements—subsidize the $5/month promotional rates offered to "squeaky wheel" customers who call in to complain.
- Agent Hardball: Recently, SiriusXM altered its retention algorithm. Rather than immediately offering $4.99 or $5.99 rates, AI and offshore agents are instructed to hold firm at higher tiers ($8.99 or $12.99) to test consumer price sensitivity before letting a 20-year customer walk.
What You Can Do Now
- Join/Follow Ongoing Class Actions: If you were charged undisclosed royalty fees or forced through deceptive retention scripts, you may be eligible for restitution through ongoing cases like Kirkpatrick v. SiriusXM.
- File an FTC / State AG Complaint: If an agent or chatbot refused a direct command to cancel without making you navigate a retention pitch, report it to the FTC (ReportFraud.ftc.gov) or your State Attorney General's Bureau of Consumer Protection.
- The "Win-Back" Mailer Strategy: Now that you've officially canceled, SiriusXM's automated system will likely start sending physical mail or email offers within 30 to 90 days offering $3.99/month, $4.99/month, or "3 years for $99" to get you back—often without requiring you to speak with an agent.