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 Madigan and the other attorneys general alleged that Sirius XM
engaged in misleading, unfair and deceptive practices in violation
of state consumer protection laws. The states’ investigation focused
on consumer complaints involving: difficulty canceling contracts,
cancellation requests that were not honored, misrepresentations that
the consumer’s Sirius XM service would be canceled and not renewed,
contracts that were automatically renewed without consumers’ notice
or consent, unauthorized fees, higher and unanticipated rates after
a low introductory rate, and Sirius XM failing to provide timely
refunds.
Under the terms of the settlement, an Assurance of Voluntary
Compliance, Sirius XM will make significant changes to its business
practices. Specifically, Sirius XM agreed to:
Clearly and conspicuously disclose all terms and conditions at the
point of sale, such as billing frequency, term length, automatic
renewal date, and cancellation policy.
Make no misrepresentations about the available plans in
advertisements.
Provide advance notice via mail or email about upcoming automatic
renewals for plans lasting longer than six months.
Revise the cancellation procedures to make it easier for consumers
to cancel.
Prohibit incentive compensation for customer service representatives
based solely on “saves,” or retaining current customers who attempt
to cancel.
“This settlement will put a stop to the numerous unfair and
deceptive practices Sirius employed to overcharge customers,”
Madigan said.
In addition to the $3.8 million that Sirius XM must pay the states,
Sirius XM will provide restitution to eligible consumers who have
complaints about the problems addressed by the agreement.
To be considered for restitution under this settlement, consumers
must file a complaint by May 3, 2015, concerning Sirius XM conduct
between July 28, 2008, and Dec. 4, 2014, involving an actual loss
that has not been previously resolved with the Attorney General’s
office.
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Consumers who previously complained about Sirius XM to the Attorney
General’s office do not need to re-file in order to be considered
for restitution under this settlement.
Consumers who have not previously filed a complaint with their
attorney general for the practices covered by this settlement have
150 days after the settlement’s execution date to file a complaint
to be considered for restitution.
Consumers who wish to file a complaint regarding Sirius XM’s
business practices addressed by this settlement are urged to contact
Madigan’s office at 1-800-243-0618 or 1-877-844-5461 (TTY) or file a
complaint online on her website. Consumers also can file complaints
on the Sirius XM website.
Joining Madigan in today’s agreement were attorneys general from the
following states: Alabama, Alaska, Arkansas, Colorado, 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, Texas,
Utah, Virginia, Washington, West Virginia and Wisconsin. The
Executive Committee consisted of attorneys general from Ohio,
Arizona, Connecticut, Tennessee, Vermont and Washington, D.C.
[From the office of Illinois Attorney
General Lisa Madigan]
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