NEW YORK, Nov 22 (Reuters) - A New York state judge
found Sirius XM Holdings ( SIRI ) liable in New York Attorney
General Letitia James' lawsuit accusing the satellite radio and
streaming company of making it too hard for customers to cancel
subscriptions.
While rejecting claims alleging fraud and deceptive
practices, Justice Lyle Frank of the state Supreme Court in
Manhattan said Sirius' policies violated the federal Restore
Online Shoppers' Confidence Act.
Frank said Sirius made canceling subscriptions "clearly not
as easy" as signing up, by requiring subscribers to speak at
length with live agents trained to dissuade cancellations, and
listen to as many as five offers of other services before being
allowed to cancel.
The judge said Sirius must change its cancellation practices
to comply with the law, and pay unspecified damages.
Sirius said on Friday it would appeal the Nov. 21 decision.
It also said it would abide by a U.S. Federal Trade
Commission rule requiring businesses to make canceling
subscriptions as easy as signing up. The "click-to-cancel" rule
takes effect on Jan. 14, 2025.
James sued Sirius last December, saying the New York-based
company's own data showed subscribers spent an average 11-1/2
minutes to cancel by phone and 30 minutes to cancel online.
She said Sirius can cancel subscriptions with a click of a
button, or let customers do it themselves.
"My office sued SiriusXM to protect consumers, and as a
result of our actions, they will have to simplify their
cancellation process to stop taking advantage of New Yorkers,"
James said in a statement on Friday.