New York Attorney General Letitia James announced a court ruling against SiriusXM Radio, Inc. for imposing an overly complex cancellation process on its customers. The court found that the company violated legal standards by requiring subscribers to engage in prolonged interactions with agents when attempting to cancel subscriptions.
Attorney General James initiated legal action against SiriusXM in 2023 following an investigation by the Office of the Attorney General (OAG). The investigation revealed that SiriusXM required subscribers to call or chat online with agents, who were trained to persistently offer retention deals and not accept "no" as an answer. This strategy was aimed at discouraging cancellations.
"No one should have to endure a lengthy and frustrating process to cancel a subscription, and any company that forces customers to jump through unnecessary hoops to end their subscriptions is breaking the law," stated Attorney General James. She added that the court's decision mandates SiriusXM to simplify its cancellation procedures, thus protecting New York consumers from such practices.
SiriusXM, headquartered in New York City, serves approximately 35 million subscribers nationwide, including nearly 2 million in New York. The OAG began its inquiry after receiving numerous complaints from consumers who struggled to terminate their subscriptions. The findings indicated that SiriusXM engaged customers in a six-part conversation involving multiple retention offers before allowing cancellations.
Affidavits submitted during the investigation highlighted customer frustrations with the cancellation process. One case involved a 40-minute chat session where an agent continued charging a subscriber despite repeated requests for cancellation. Another complaint described a similarly lengthy phone interaction on behalf of a 92-year-old customer.
Justice Lyle Frank of the New York Supreme Court ruled that SiriusXM's cancellation procedure breached the federal Restore Online Shoppers’ Confidence Act (ROSCA) by being significantly more complicated than signing up for services. As per the court's decision, SiriusXM must revise its procedures in New York, ensuring customers can cancel without speaking or chatting with live agents.
The case was managed by Assistant Attorneys General Adam J. Riff and Christian Reigstad from the Consumer Frauds & Protection Bureau under Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine. This bureau is part of the Division of Economic Justice led by Chief Deputy Attorney General Chris D’Angelo and overseen by First Deputy Attorney General Jennifer Levy.