The attorneys general of 45 states and D.C. alleged that Sirius XM engaged in misleading, unfair and deceptive practices in violation of state consumer protection laws.
Sirius XM said it was pleased to have resolved the issue.
"The changes to our consumer practices that we agreed to are practices we have already implemented at SiriusXM. Under the terms of the settlements, we have agreed to provide, upon the request of the States, additional information about our consumer practices and to participate in a process designed to address any previously unresolved consumer complaints," said Patrick Reilly, Senior Vice President, Communications.
The states’ investigation focused on consumer complaints involving: difficulty canceling contracts, cancellation requests that were not honored, misrepresentations that the consumer’s Sirius XM service would be canceled and not renewed, contracts that were automatically renewed without consumers’ notice or consent, unauthorized fees, higher and unanticipated rates after a low introductory rate, and Sirius XM failing to provide timely refunds.
Under the terms of the settlement, Sirius XM agreed to:
- Clearly and conspicuously disclose all terms and conditions at the point of sale, such as billing frequency, term length, automatic renewal date, and cancellation policy.
- Make no misrepresentations about the available plans in advertisements.
- Provide advance notice via mail or email about upcoming automatic renewals for plans lasting longer than six months.
- Revise the cancellation procedures to make it easier for consumers to cancel.
- Prohibit incentive compensation for customer service representatives based solely on “saves,” or retaining current customers who attempt to cancel.
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