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Sirius XM found liable in New York lawsuit over subscription cancellations
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Sirius XM found liable in New York lawsuit over subscription cancellations
Nov 22, 2024 7:58 AM

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.

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