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Edited by: TJVNews.com
In a case that highlights growing scrutiny of subscription practices, New York Attorney General Letitia James announced on Friday that SiriusXM Radio, Inc. violated federal law by subjecting customers to burdensome cancellation procedures. As was reported by Spectrum News 1, the ruling, issued by New York State Supreme Court Justice Lyle Frank, found that SiriusXM’s practices contravened the federal Restore Online Shoppers’ Confidence Act (ROSCA) of 2010.
New York Attorney General James initiated the lawsuit against SiriusXM in December 2023 after her office investigated numerous customer complaints. According to the report on Spectrum News 1, subscribers described experiencing prolonged waits in automated systems, followed by lengthy interactions with live agents trained to resist cancellation requests. Evidence presented included affidavits detailing these obstacles, with customers reporting an average cancellation time of 11.5 minutes by phone and 30 minutes online. For many, the process took considerably longer.
Justice Frank’s ruling noted that SiriusXM’s cancellation procedure often required subscribers to listen to repeated retention offers, a tactic deemed to discourage or delay cancellations. The Spectrum News 1 report emphasized that the court’s findings align with ROSCA’s mandate for clear and simple cancellation methods for online subscriptions.
The court determined that SiriusXM’s actions violated federal law and ordered the company to simplify its cancellation procedures for New York subscribers. Customers will no longer be required to interact with live agents to cancel their subscriptions. According to the information provided in the Spectrum News 1 report, this marks a significant shift for SiriusXM, whose practices were deemed “burdensome and frustrating” by the court.
Attorney General James lauded the ruling, stating, “No one should have to endure a lengthy and frustrating process to cancel a subscription, and any company that forces customers to jump through unnecessary hoops to end their subscriptions is breaking the law.” As reported by Spectrum News 1, James also pointed out that SiriusXM, headquartered in New York City, serves approximately 35 million subscribers, with nearly 2 million residing in New York State.
In a statement provided to Spectrum News 1, SiriusXM countered the narrative presented by the Attorney General’s office. The company noted that the court dismissed most allegations, asserting that its policies were neither misleading nor deceptive. SiriusXM’s statement highlighted the court’s acknowledgment of its efforts to avoid fraudulent practices, but conceded that technical violations of ROSCA were identified.
“While the Court found some technical violations of a Federal statute, it did not find that SiriusXM ever deceived anyone or committed any fraud,” the company said. SiriusXM also signaled its intention to appeal the ruling regarding these technical violations. Moreover, SiriusXM stated it would comply with the Federal Trade Commission’s (FTC) forthcoming guidelines on subscription cancellations.
The case sets a significant precedent for how companies structure their subscription models and cancellation processes. As Spectrum News 1 reported, the ruling sends a clear message that companies must prioritize transparency and simplicity in consumer interactions. Attorney General James emphasized this point, stating that lengthy cancellation procedures are not only unfair but also unlawful.
The SiriusXM case comes amid broader regulatory efforts to hold companies accountable for their subscription practices, including the FTC’s recent initiatives to mandate clear, consumer-friendly cancellation methods. According to Spectrum News 1, the case shines a spotlight on a growing demand for reform in the subscription-based service industry, as consumer advocates push for easier ways to end recurring charges.
