New York AG Sues SiriusXM Over Cancellation Process

RADIO ONLINE | Wednesday, December 20, 2023

New York AG Office

New York attorney general Letitia James is taking legal action against SiriusXM, alleging that the satcaster creates obstacles for customers attempting to cancel their subscriptions. The AG's office launched an investigation following numerous complaints from customers. The probe revealed that SiriusXM allegedly employs tactics that deliberately prolong and complicate the cancellation process.

The OAG also found that the company trains its agents to not take "no" for an answer when customers try to cancel, making it extremely difficult and frustrating for consumers to end their subscriptions. Through this lawsuit, Attorney General James seeks restitution, penalties, and disgorgement from SiriusXM for violating New York's business laws.

James condemned these practices and stated, "Forcing individuals through a frustrating and protracted ordeal to cancel a subscription is both distressing and illegal."

However, SiriusXM refuted these accusations. The company argued that the extended interaction times mentioned in the lawsuit primarily stemmed from a 2020 inquiry and were partly influenced by the pandemic's impact on their operations. Furthermore, they highlighted that several subscription plans offer a straightforward online cancellation option.

SiriusXM spokesperson Jessica Casano-Antonellis said, "Similar to numerous consumer-oriented businesses, we provide multiple avenues for customers to both sign up for and cancel their subscriptions. We vehemently reject these unfounded allegations that misrepresent SiriusXM's practices."

The attorney general's office supported its claims with customer affidavits detailing grievances of enduring extensive wait times in automated systems, followed by prolonged efforts to retain their business. They noted that, on average, it takes subscribers 11.5 minutes to cancel via phone and 30 minutes online, with instances of even longer waits.

The lawsuit highlighted statistics between 2019 and 2021, where over 578,000 subscribers seeking phone cancellations abandoned their attempts while waiting in the queue. One frustrated customer recounted in an affidavit, "After waiting almost half an hour and finally connecting with a customer representative, I was abruptly disconnected. This meant enduring another 30 minutes just to cancel a service I preferred to terminate online."

SiriusXM countered these claims, stating that in 2021, their online chat agents typically responded to consumer messages within 36 seconds to 2.4 minutes.