Judge Rules SiriusXM's Cancellation Process Unlawful, Orders Changes
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SiriusXM's Cancellation Process Declared Illegal by New York Judge
A significant ruling from New York has deemed SiriusXM's subscription cancellation process illegal. Judge Lyle Frank's decision comes after a lawsuit filed by New York Attorney General Leticia James, which claimed the company implements burdensome measures to deter cancellations.
The Background of the Case
The legal proceedings were initiated nearly a year ago as an investigation by the Office of the Attorney General uncovered that SiriusXM was making it excessively difficult for customers to cancel their subscriptions. Customers were required to call an agent who, instead of processing the cancellation swiftly, would keep them on the line for several minutes while attempting to sell them retention offers.
Legal Findings
Judge Frank concluded that SiriusXM's practices violated the Restore Online Shoppers Confidence Act (ROSCA), which mandates companies to provide straightforward ways to cancel subscriptions. As per the ruling, he noted that the process to cancel was not as user-friendly as signing up for the service, primarily due to unavoidable wait times and persistent sales pitches from agents.
Implications of the Ruling
This ruling highlighted a growing trend, with federal bodies like the Federal Trade Commission (FTC) now cracking down on hard-to-cancel subscriptions. Starting next year, a new "click to cancel" rule will require businesses to make the cancellation process as hassle-free as the enrollment process.
Next Steps for SiriusXM
As a result of this ruling, SiriusXM is required to revise its cancellation procedure for customers in New York. However, the company plans to appeal the decision, while also stating its commitment to comply with the forthcoming FTC regulations.
Consumer Advocacy and Future Changes
Attorney General James emphasized that the ruling confirms SiriusXM created a convoluted cancellation procedure, which forced customers to spend unnecessary time trying to discontinue their service. This decision is anticipated to set a precedent for how companies handle subscription cancellations in the future.
Conclusion
This case serves as a wake-up call for all subscription-based services to reassess their cancellation processes, aiming to enhance transparency and customer satisfaction. With the shifting regulatory landscape, businesses that fail to adapt may face similar legal repercussions.
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