SiriusXM’s Cancellation Nightmare: NY AG Strikes a Chord for Consumer Rights

SiriusXM cancellation process ruled illegal in consumer rights victory

The New York Attorney General has successfully challenged SiriusXM's predatory cancellation practices, marking a significant victory for consumer rights. This landmark ruling will force SiriusXM to simplify its subscription cancellation process, empowering nearly 2 million New York subscribers to easily unsubscribe without facing aggressive retention tactics.

by
November 23, 2024

New York Attorney General Letitia James has secured a court decision against SiriusXM, finding the company’s subscription cancellation process illegal.

Key Legal Ruling Details

 Justice Lyle Frank of the New York Supreme Court ruled that SiriusXM violated the federal Restore Online Shoppers’ Confidence Act (ROSCA).

Problematic Cancellation Practices

 SiriusXM’s cancellation process was systematically designed to prevent subscribers from easily ending their service:

  • Forced customers to call or chat with live agents
  • Trained agents to resist cancellation attempts
  • Presented up to five retention offers during cancellation
  • Deliberately extended conversation times

Documented Customer Experiences

 Concrete examples highlighted the company’s aggressive retention strategies:

  • One customer was kept in a chat for 40 minutes despite repeated cancellation requests
  • Average cancellation times:
    • Phone: 11.5 minutes
    • Online: 30 minutes
  • Some customers experienced even longer interaction times

Subscriber Impact

 Total subscribers: 35 million
New York subscribers: Nearly 2 million
Widespread complaints across multiple consumer agencies

Legal Consequences and Mandated Changes

 SiriusXM must now:

  • Simplify cancellation procedures
  • Provide a straightforward cancellation method
  • No longer require live agent interactions
  • Pay unspecified damages

Company Response

 SiriusXM maintains a defensive stance:

  • Claims court dismissed “almost all” allegations
  • Argues their policies were not misleading
  • Intends to appeal the technical violations
  • Will comply with upcoming FTC “click-to-cancel” rule effective January 14, 2025

Broader Implications

The ruling represents a significant consumer protection victory, potentially setting a precedent for other subscription-based services with complex cancellation processes.

This decision underscores the growing legal scrutiny of predatory subscription retention practices and reinforces consumer rights in the digital marketplace.

Also See

The $50M Streaming Sucker Punch: How 90,000 Viewers Are Suing Netflix Over Tyson v. Paul Boxing Match

Judge Rules Kraft Heinz Can’t Escape Mac & Cheese Artificial Ingredients Lawsuit

Tesla vs. Rivian: The Electric Clash of the Titans Settles

Facebooktwitterredditpinterestlinkedinmail