Sirius XM Radio signed a $3.8 million settlement Thursday with 44 state attorneys general and the District of Columbia to resolve claims that the satellite radio company engaged in misleading advertising and billing practices.
“Through this settlement, Sirius is committing to be more transparent, responsive, and fair with its customers,” Nevada Attorney General Cortez Masto said.
An investigation led by the Ohio Attorney General’s Office found consumer complained about: difficulty canceling contracts; cancellation requests that weren’t honored; threats that service would be canceled; contracts that were automatically renewed without consumers’ consent; unauthorized fees; higher rates after a low introductory rate; and failure to provide timely refunds.
Refunds
Consumers who experienced problems with Sirius XM since July 28, 2008 can file a complaint.
The deadline is May 3, 2015. Anyone who complained earlier to an Attorney General’s Office or Sirius XM should file a new complaint to be eligible for a refund.
Consumers can file a complaint on Sirius XM’s website, on their attorney general’s website, or by mail to Sirius XM Radio, PO Box 33059, Detroit MI 48232-5059.
Settlement terms
Sirius XM will make changes to its business practices, including:
- Clearly disclose all terms and conditions.
- Make no false statement about the available plans in advertisements.
- Provide advance notice by mail or email about upcoming automatic renewals for plans lasting longer than six months.
- Revise cancellation procedures to make it easier for consumers to cancel.
- Prohibit compensation for customer service representatives based only on “saves,” or retaining current customers who attempt to cancel.
The other states participating in the settlement are: Alabama, Alaska, Arkansas, Arizona, Colorado, Connecticut, Delaware, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Vermont, West Virginia, and Wisconsin.
