Sirius XM Radio reaches settlement with 44 states

By Mark Payne | Dec 12, 2014

Maine Attorney General Janet Mills   Maine Attorney General's Office

Sirius XM Radio, Inc. has reached a $3.8 million settlement with 44 states, including Maine, Attorney General Janet Mills announced on Thursday.

The settlement is related to allegations that the satellite radio company participated in misleading billing practices and advertising.

Among the claims from consumers were allegations of confusing misrepresentation of non-renewed contracts and cancellation; difficulty in getting contracts canceled; contracts renewed without the customer's consent; unauthorized fees; failure to provide timely refunds and higher subscription rates than customers were originally told with their initial low introductory rate.

In addition to paying the state's involved in the lawsuit $3.8 million, Sirius will reimburse affected customers who filed complaints against the company between July 28, 2008 and Dec. 4 of this year. 

The New York-based company also will make changes to the way it conducts business, including providing more focused and clear advertising that isn't misleading; disclosing all details of contracts; giving notice of renewals for plans lasting longer than six months; changing its cancellation policies; and eliminating incentives to customer service representatives based only on retaining current customers who want to cancel their contracts with Sirius.

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