SiriusXM's Complex Cancellation Process Violates Federal Law, Judge Rules
SiriusXM violated federal law by making subscription cancellations unnecessarily difficult, according to a New York State Supreme Court ruling. Judge Lyle Frank determined the company's practices breached the Restore Online Shoppers' Confidence Act (ROSCA), which requires simple cancellation processes.
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Key findings from the ruling:
- Customers faced "burdensome" cancellation procedures requiring phone calls with live agents
- The company made canceling more difficult than subscribing
- Agents were instructed to treat customer rejections as "requests for more information"
- While problematic, practices didn't constitute fraud or deception
SiriusXM plans to appeal the decision while emphasizing that the court dismissed four of five counts against them. The company maintains their policies weren't misleading or deceptive, citing training materials that instructed agents to be "fast, friendly, and efficient."
This ruling precedes the Federal Trade Commission's new "click-to-cancel" rule taking effect in early 2025, which will require easier cancellation processes for subscriptions including streaming services, pay-TV, and gym memberships.
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