Judge Lyle Frank of New York State ruled that SiriusXM Holdings must revise its subscription cancellation practices after the company was accused by Attorney General Letitia James of making the process unnecessarily complicated.
The Manhattan Supreme Court determined that Sirius’s policies violate the Restore Online Shoppers’ Confidence Act (ROSCA), a federal law that protects consumers from unjustified obstacles. While not accusing the U.S. broadcasting company, which provides satellite and web radio services in the United States, of fraud or deceptive practices, the judge emphasized that Sirius’s cancellation practices are “clearly not as easy” as the subscription process.
According to the ruling, Sirius required subscribers to engage in lengthy conversations with operators specifically trained to dissuade them from canceling, forcing customers to listen to up to five offers for additional products or packages before completing the process.
In some cases, data showed that customers spent an average of 11 and a half minutes on the phone to resolve their subscription issues, while those who opted for the online process needed up to 30 minutes. This system was deemed clearly disproportionate compared to the simplicity of signing up.
Judge Frank ordered the company to modify its practices, ensuring compliance with the law and making the process more accessible to consumers. SiriusXM was also ordered to pay damages, although the amounts have not yet been specified.
Although the company has already announced its intention to appeal the decision, it stated that it would comply with the new “click-to-cancel” rule introduced by the Federal Trade Commission. This regulation, which will come into effect on January 14, 2025, will require all companies to simplify cancellation processes.
James emphasized that Sirius’s unfair practices represented an abuse against the consumers of the Big Apple.
The goal remains to ensure that citizens have the right to cancel their subscriptions easily, through a simple click or self-managed processes.
