New York Judge Rules SiriusXM Violated Federal Law by Making it Difficult for Subscribers to Quit
A New York judge has ruled that SiriusXM Radio violated federal law by making it too hard for subscribers to quit. New York Attorney General Letitia James sued the company in 2023, alleging that they trapped New Yorkers in a cumbersome, frustrating loop to keep taking their money.
The Ruling
New York Supreme Court Justice Lyle Franke ruled that Sirius failed two out of three cancellation standards from the Federal Trade Commission. The company was found to have violated the federal Restore Online Shoppers’ Confidence Act by making it harder to cancel than it was to sign up, and by making subscribers suffer through long conversations with agents trained to resist cancellation.
The Allegations
James accused the company of deceptive business practices, claiming that they would repeatedly pitch retention offers and ignore clear requests to end subscriptions. Sirius argued that many customers who called to cancel actually just wanted discounts, so it only made sense for agents to offer deals before canceling. The company also claimed that they never promised customers to make it easy to cut service.
The Ruling’s Implications
The judge granted summary judgment on one of five claims, requiring Sirius to simplify and overhaul their policies in New York. The company must install a simple, automated cancellation process that doesn’t require speaking to a live representative. This ruling is a victory for consumer protection and ensures that customers can easily cancel their subscriptions without being trapped in a frustrating loop.
Conclusion
The ruling is a significant victory for consumers and a reminder that companies must comply with laws and regulations that protect consumers. This decision sets a precedent for other companies to follow and ensures that customers are not taken advantage of by deceptive business practices.
Frequently Asked Questions
Q: What is the Restore Online Shoppers’ Confidence Act?
A: The Restore Online Shoppers’ Confidence Act is a federal law that requires online retailers to make it easy for customers to cancel their subscriptions.
Q: What did the New York Attorney General’s office allege against SiriusXM?
A: The office alleged that SiriusXM trapped New Yorkers in a cumbersome, frustrating loop to keep taking their money, and that they would repeatedly pitch retention offers and ignore clear requests to end subscriptions.
Q: What is the significance of the ruling?
A: The ruling sets a precedent for other companies to follow and ensures that customers are not taken advantage of by deceptive business practices. It also provides a victory for consumer protection.
