This is a blog post for informational and advertising purposes. Maginnis Howard is a civil litigation law firm investigating potential violations of consumer rights and is not affiliated with the following company.
SiriusXM is an audio entertainment business that provides content to consumers on a subscription fee basis. The service uses satellite and online streaming and comes standard in millions of new and used vehicles. But the popular broadcasting corporation is under fire for its billing and advertising practices across the nation. Two recent lawsuits allege SiriusXM is intentionally making canceling subscriptions difficult to retain business, and hides fees in violation of false advertising laws. We are investigating these practices and more to protect North Carolina consumers.
Cancellation Issues
When consumers sign up for the service, they never need to speak to a live representative. However, canceling SiriusXM subscriptions is a complicated affair. Two recent lawsuits allege that the company makes canceling a contract intentionally tricky.
In March of 2023, the FTC proposed enforcing more stringent cancellation rules for subscription services. An updated rule may require companies to ensure cancellation is as easy to cancel as it is to sign up. For example, a “click to cancel” option is available if an online sign-up is available.
Lawsuits Against SiriusXM
A lawsuit in New York alleges the cancellation process is designed to be frustrating and inaccessible by requiring customers to take lengthy steps to end their subscriptions. The satellite radio service comes standard on roughly 13 million new automobiles sold in the United States annually, generally with a 3 or 6-month free trial. This means consumers don’t need to speak to an agent or seek out the service independently. However, getting out of a Sirius contract is a different story.
SiriusXM customers must speak to a live agent to cancel. This is already more labor-intensive than the way their contract began. According to the suit, Sirius instructs agents to refuse cancellation until they have taken the customer through a six-page script. In this script, agents are trained “not to take ‘no’ for an answer” and “think of every ‘no’ as a request for more information.”
A recent lawsuit in California alleges SiriusXM uses deceptive advertising practices to lure consumers into subscriptions that are then difficult to get out of. Complainants say the radio service is advertised at a price that does not include “taxes and fees” when only one such fee, a “U.S. Music Royalty Fee”, is applied. This fee makes up most of the company’s yearly net profits. The lawsuit contends that Sirius is intentionally disguising the pricing of their services in violation of False Advertising legislation.
SiriusXM is the only music streaming service to charge a “U.S. Music Royalty Fee.” This fee adds an additional 21% to the advertised price of the subscription. The class action complaint argues this constitutes a misrepresentation of the actual price. This misleads consumers into subscriptions that they may have otherwise never entered.
North Carolina Consumer Protection Attorneys
Maginnis Howard’s consumer protection attorneys are passionate about holding companies that violate consumer law accountable. If you believe your rights have been violated by SiriusXM or any other large company, contact us today.
Our firm has three conveniently located offices in Charlotte, Raleigh, and Fayetteville. For information on each branch, visit the Locations tab in the navigation menu. To reach an intake specialist, visit our contact page or submit a chat through our Live Chat feature. You may also call us at (919) 526-0450. Our Raleigh office handles most consumer cases, but we accept clients from across the state.
