Judge Rules SiriusXM's Subscription Cancellation Process Too Difficult for Customers
SiriusXM violated federal law by making subscription cancellations unnecessarily difficult, according to a recent ruling by New York State Supreme Court Justice Lyle Frank. The satellite radio company required customers to speak with live agents to cancel, while allowing sign-ups without such interaction.
SiriusXM Studio with radio equipment
The ruling stems from a lawsuit filed by Attorney General Letitia James, who described the cancellation process as an "endurance contest." While the judge dismissed claims of fraud and deception, he found SiriusXM's practices violated the Restore Online Shoppers' Confidence Act (ROSCA), which requires "simple" cancellation processes.
Key findings from the ruling:
- Customers faced "inevitable wait times" to speak with agents
- Agents were instructed to treat every "no" as a request for more information
- The company made cancellation more complex than subscription sign-up
- Four of five lawsuit counts were dismissed, including fraud allegations
SiriusXM plans to appeal the decision while emphasizing that the court found no evidence of deception or fraud. The company has committed to following the Federal Trade Commission's new "click-to-cancel" rule, effective early 2025, which aims to simplify subscription cancellations across various services.
"The FTC's rule will end these tricks and traps, saving Americans time and money," stated FTC Chair Lina Khan regarding the broader regulatory changes affecting subscription services.
Businessman checking phone with charts
Billie Eilish singing with microphone
Charli XCX performing on concert stage
Related Articles
Artist Partner Group Files Lawsuit Against Create Music Over Artist Contract Interference
