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Wednesday, December 10, 2014

Sirius XM Settles Deceptive Advertising Lawsuit


The Satellite company has agreed to pay $3.8 million to resolve allegations it engaged in misleading advertising and billing practices. In addition to paying 46 Attorneys General, who filed the lawsuit, Sirius XM will pay restitution to resolve complaints from eligible consumers who encountered problems canceling their services or obtaining refunds during the period of July 28, 2008 to Dec. 4, 2014. Maryland Attorney General Douglas Gansler said, "Consumers shouldn't have to read the super-fine print or jump through hoops to understand and cancel their service contracts. Requiring Sirius to change its business practices means customers will be better informed about their rights and the terms of their agreement."

Under the terms of the settlement, Sirius XM will also make changes to its business practices by agreeing to:
Clearly and conspicuously disclose all terms and conditions to consumers at the point of sale, including billing frequency, term length, any automatic renewal date, and its 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.

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