Judge Rules SiriusXM's Cancellation Process Is Illegal: What You Need

SiriusXM's Cancellation Process Ruled Illegal by New York Judge

A recent ruling in New York has brought significant attention to SiriusXM's subscription cancellation practices. Judge Lyle Frank determined that the company's lengthy and complicated cancellation process is illegal under federal law, specifically the Restore Online Shoppers Confidence Act (ROSCA).

The Background of the Lawsuit

The ruling stems from a lawsuit filed nearly a year ago by New York Attorney General Leticia James. The lawsuit accused SiriusXM of creating barriers that make it difficult for subscribers to cancel their services. Following an investigation, the Attorney General’s office found that the company required customers to call an agent to cancel their subscriptions, often keeping them on the phone with multiple retention offers.

Judge's Findings

Judge Frank's decision highlighted that SiriusXM's cancellation procedure is not straightforward, noting that it included inevitable wait times and aggressive sales tactics. According to the ruling, "Their cancellation procedure is clearly not as easy to use as the initiation method." This reflects a growing concern over user rights and consumer protection in subscription services.

Federal Crackdown on Hard-to-Cancel Subscriptions

This judgment aligns with a broader trend where regulatory bodies, including the Federal Trade Commission (FTC), are increasingly looking into subscription services for deceptive practices. The FTC's new "click to cancel" rule, which will be effective next year, mandates that companies must make subscription cancellations as easy as the sign-up process.

Implications for SiriusXM and Future Subscribers

As a result of the court's ruling, SiriusXM is compelled to overhaul its cancellation process for customers in New York. The company has announced plans to appeal the decision but has also stated it will adhere to the FTC's forthcoming regulations.

Conclusion

With rising scrutiny on subscription cancellation practices, consumers are increasingly gaining rights over their subscriptions. The outcome of this case sets a vital precedent that could influence how companies design their subscription models and address customer cancellation requests in the future.

Judge Rules SiriusXM's Cancellation Process Is Illegal: What You Need to Know