SiriusXM Asks Judge to Toss NYS Lawsuit

SiriusXM has requested a judge toss a lawsuit filed by the state of New York in December  against the company for its customer service practice.  Significantly, the suit claims SiriusXM has hurdles consumers must be subjected to when attempting to cancel subscriptions plans. Calling the allegations “meritless” in its response filed in New York Supreme Court, the satellite radio company says the lawsuit is “nothing more than costly, wasteful litigation” and asks for the case to be dismissed.

SiriusXM has found itself in legal hot water due to its cancellation practices. New York Attorney General Letitia James filed a lawsuit against the satellite radio and streaming audio company, alleging that it engages in “trapping consumers” with deliberately long and burdensome cancellation processes1. Here are the key details:

Illegal Cancellation Process: SiriusXM’s cancellation process isn’t just annoying; it’s illegal. The company allegedly forces subscribers to engage in lengthy interactions with agents when canceling their subscriptions. Subscribers are required to call or chat online with an agent to cancel, and SiriusXM intentionally draws out these interactions to prevent cancellations. The company violated state and federal laws by failing to provide a simple, timely, and easy-to-use cancellation mechanism. Additionally, SiriusXM is accused of fraud and deception by misleading subscribers seeking to cancel their accounts.

Lengthy and Frustrating Process: SiriusXM’s agents follow a six-part script designed to delay cancellations. They ask a series of questions and pitch as many as five retention offers to keep subscribers on the line. Agents are trained not to take “no” for an answer and to keep bombarding customers with questions or offers until they relent or become frustrated. On average, it takes subscribers 11.5 minutes to cancel by phone and 30 minutes to cancel online.

Subscriber Impact:  SiriusXM had approximately 34 million subscribers as of September 30, including nearly 2 million New York residents.  The New York AG’s office opened an investigation after receiving hundreds of complaints from consumers who couldn’t cancel their subscriptions.

Response from SiriusXM: A SiriusXM spokesperson stated that they offer various options for customers to sign up for or cancel their subscriptions.