The judge ruled that SiriusXM can’t force you to cancel over the phone and waste your time



Nowadays, it seems easy to abolish corporations, people, society, and even the little store around the corner. But bless our impatient hearts if we even consider canceling our gym memberships or music subscriptions. Except in New York State, where a judge recently ruled SiriusXM’cancellation policy violates federal law.

As reported by EdgeSiriusXM was sued by the state last year amid claims that subscribers who tried to cancel were essentially being held hostage by incessant questions or repeated hold offers. According to the lawsuit, “Sirius is intentionally wasting its subscribers’ time, even though it has the ability to handle cancellations with the click of a button.”

The lawsuit also alleged that SiriusXM’s own data showed that customers spent an average of 11.5 minutes on the phone or 30 minutes online with customer service agents. Before dismissing this as frivolous, the key point was The Restoring Internet Consumer Confidence Act (ROSCA), a consumer protection act signed into law by Congress in 2010.

The act states that consumers should be given “simple mechanisms” specifically to stop recurring charges subscription services. An investigation by the attorney general’s office found that would-be cancellers were interviewed on the phone at length while being offered “as many as five offers of maintenance.”

So New York sued SiriusXM not only because it was a waste of time, but also because its lengthy customer service calls were illegal. The judge agreed, saying that SiriusXM’s cancellation practices had been “long and arduous.”

“Their cancellation procedure is clearly not as easy to use as the initiation method,” he said.

As a result, SiriusXM will have to change its cancellation process, at least in New York. It was not clear how or what the updated policy would entail.

Separate, but not unrelatedThe Federal Trade Commission (FTC) announced a new “Click to cancel” rule llast month. In the same vein as ROSCA, businesses must “make it as easy for people to opt out of your program as it is to sign up.” This includes not requiring customers to speak with a representative—in person, over the phone, or online—unless they were asked to do so during registration. The FTC’s “click to cancel” rule will go into effect next year.

SiriusXM, of course, plans to appeal the decision in New York. “While the court found some technical violations of federal law, it did not find that SiriusXM ever defrauded anyone or committed fraud,” SiriusXM spokeswoman Maggie Mitchell said in a statement to Edge. As for the FTC, Mitchell said SiriusXM will follow the new cancellation requirement.



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