Judge: Sirius broke the law with convoluted cancellations

ALBANY, N.Y. (NEXSTAR) — A New York judge ruled that SiriusXM Radio violated federal law by making it too hard for subscribers to quit. Attorney General Letitia James sued the company in 2023, alleging that they trapped New Yorkers in a cumbersome, frustrating loop to keep taking their money.

Headquartered in New York City, Sirius has approximately 35 million subscribers, including nearly 2 million New Yorkers. James called the ruling a victory for consumer protection. You can take a look at the ruling at the bottom of this story.

New York Supreme Court Justice Lyle Franke ruled from Manhattan that Sirius failed two out of three cancellation standards from the Federal Trade Commission. They violated the federal Restore Online Shoppers’ Confidence Act by making it harder to cancel than it was to sign up, and making their subscribers suffer through long conversations with agents trained to resist cancellation.

James accused the company of deceptive business practices, claiming that they would repeatedly pitch retention offers and ignore clear requests to end subscriptions. But Sirius said that many customers who called to cancel actually just wanted discounts, so it only made sense for agents to offer deals before canceling. They also argued that they never promised customers to make it easy to cut service.

Claiming that they had no problem complying with other state laws, Sirius also raised constitutional concerns. They said that restricting the way they conducted customer service would represent a free speech violation and tried to get the claims dismissed.

The attorney general's office argued for an injunction, paying back customers who'd been tricked, and civil penalties. The judge had to consider whether James could recover damages for out-of-state customers, as alleged deceptions happened with non-New York representatives. He also examined New York's legal standards for fraud and deception.

Frank granted summary judgment on one of five claims, requiring Sirius to simplify and overhaul their policies in New York. They have to install a simple, automated cancellation process that doesn't require speaking to a live representative.

Partial summary judgment means that the court dismissed four other claims. The attorney general's office had argued that Sirius created a fraudulent atmosphere and violated consumer protection laws. But Frank disagreed. Still, his decision lets James assess damages for repeat violations on that single claim.

"Any company that forces customers to jump through unnecessary hoops to end their subscriptions is breaking the law,” James said in a statement announcing the ruling. Take a look below: