New York Attorney General Sues SiriusXM Over Alleged Trapping of Customers in Subscriptions
The New York attorney general’s office is suing SiriusXM, accusing the satellite radio company of trapping customers in subscriptions and finding ways to prevent them from cancelling.
On Wednesday, New York AG Letitia James announced the lawsuit following an investigation that discovered the company “forces its subscribers to call or chat online with an agent to cancel a subscription, then deliberately draws out those interactions as part of its strategy” to prevent subscribers from cancelling their packages.
In a press release, James stated that a company’s difficult cancellation process is illegal, adding, “Consumers should be able to cancel a subscription they no longer use or need without any issues, and companies have a legal duty to make their cancellation process easy.”
The investigation was opened after “hundreds of customers” reported complaints of the company’s difficult cancellation process. The AG’s office also found that SiriusXM trains its agents to not take “no” for an answer when customers are cancelling, allegedly keeping customers on the phone for a “lengthy six-part conversation” that involves several questions and offering retention offers in an attempt to prevent them from cancelling.
James is seeking compensation for affected customers, penalties against the company for alleged fraud and restitution for violating New York’s laws. She also wants to require SiriusXM to “implement a simple and easy-to-use cancellation process.”
Affected customers are encouraged to report similar issues to James’ office.
SiriusXM has about 35 million subscribers, with two million in New York. Earlier this year, the Federal Trade Commission proposed a rule that would let Americans more easily cancel free trials and subscriptions they no longer want. SiriusXM did not immediately respond to comment on the lawsuit.