Subscription-based satellite radio service Sirius XM has agreed to significantly change its business practices, pay $3.8 million to the states, and provide payments to eligible consumers in 45 states and the District of Columbia, based on a recent agreement led by Ohio Attorney General Mike DeWine.
The agreement resolved allegations of violations of states’ consumer protection laws, including:
-
Difficulty canceling contracts.
-
Cancellation requests that were not honored.
-
Misrepresentations that the consumer’s service would be canceled and not renewed.
-
Contracts that were automatically renewed without consumers’ notice or consent.
-
Unauthorized fees.
-
Higher, unanticipated rates after a low introductory rate.
-
Failing to provide timely refunds.
Under the terms of the settlement, Sirius XM agreed to make several significant changes to its business practices, including:
-
Clearly and conspicuously disclosing all terms and conditions at the point of sale, such as billing frequency, term length, automatic renewal date, and cancellation policy.
-
Not making misrepresentations about the available radio plans in advertisements.
-
Providing advance notice about upcoming automatic renewals for plans lasting longer than six months.
-
Revising the cancellation procedures to make it easier for consumers to cancel.
-
Prohibiting compensation for customer service representatives based solely on retaining current customers who attempt to cancel.
Sirius XM also agreed to provide restitution to eligible consumers who have complaints about the problems addressed by the settlement. To be considered for restitution under this settlement, consumers must file a complaint concerning conduct that occurred from July 28, 2008, to Dec. 4, 2014, involving an identifiable loss that has not been previously resolved with the Ohio Attorney General’s Office.
To file a complaint, Ohio consumers should contact the Ohio Attorney General’s Office at
www.OhioAttorneyGeneral.gov or 800-282-0515. Consumers also can contact Sirius XM directly with their complaints. Complaints can be sent by mail to PO Box 33059, Detroit MI 48232-5059 or by going to the following web address:
www.siriusxm.com/settlementprogram.