As the satellite provider attempts massive expansion in 2024, SiriusXM’s 2023 is ending with legal action courtesy of New York State Attorney General Letitia James. James has filed the lawsuit over SiriusXM’s purportedly arduous cancellation process, posting it, “Illegally traps people into subscriptions,” on X.
The lawsuit, rooted in findings from an investigation by the Office of the Attorney General, alleges that SiriusXM deliberately prolongs cancellation interactions and trains agents to aggressively retain customers, engaging, “In repeated and persistent fraud and illegality in violation of New York Executive Law.” With approximately 35 million subscribers, including about 2 million in New York, the lawsuit seeks unspecified penalties and restitution, the amount of which will be determined at trial.
The investigation began following numerous consumer complaints about the difficulty in canceling subscriptions. It revealed that SiriusXM reportedly trains its employees to engage customers in a lengthy six-part conversation strategy, including a series of questions and up to five retention offers, when they attempt to cancel. The OAG found the process averages 11.5 minutes over the phone and 30 minutes online.
SiriusXM has suffered massive subscriber-base setbacks this year, with drops of 132,000, 347,000, and 96,000 in Q1, Q2, and Q3, respectively. The company’s recent rebrand, retooled app, and upcoming large-scale marketing push are all out to stymie the bleeding. Young consumers are particularly the target, with new partnerships like TikTok Radio and celebrity takeovers on its channels.
James commented, “Having to endure a lengthy and frustrating process to cancel a subscription is a stressful burden no one looks forward to, and when companies make it hard to cancel subscriptions, it’s illegal. 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. New Yorkers can trust that when companies like SiriusXM try to take advantage of them and violate the law, my office will step in to stop them.”
This lawsuit is part of a series of consumer protection actions taken by the New York attorney general, including a recent $700 million settlement from Google over monopolistic conduct in its app store and on in-app purchases.
The easiest way to cancel anything that makes it almost impossible to cancel is just change the autopay to a dead account.
They will get the message then.
I started working radio in 1989. I currently work for a global TV company that has radio stations in most major markets in the US and Puerto Rico. Who ever is not honest and say that radio is still what it was, shame on you. As long as the digital space continues to expand without regulation, terrestrial Radio will continue to suffer. If major corporate companies continue to buy terrestrial Radio properties for marketing strategies of other products, Radio will continue to suffer.
Terrestrial radio has become a tool in the audio medium to market and promote the digital space. Corporate has squeezed out all talent from terrestrial radio and replaced it with automation. In my opinion, there is no soul in Radio. It is simply a puppet.
Perhaps she should prosecute criminals in her own state since the crime stats are so high.
I applaud the AG. It’s time big tech has guard rails just like broadcasters do.
A useless waste of resources and priorital stupidity.