SiriusXM Puts Canceling Subscribers Through an ‘Endurance Contest,’ Alleges N.Y. AG

SiriusXM sells subscriptions “that are easy to purchase" but "extremely difficult to cancel,” with a number of tricks designed to dissuade consumers from carrying through with their cancellations, alleged New York Attorney General Letitia James (D) in a five-count fraud complaint Wednesday in New York County Supreme Court. SiriusXM immediately called James' allegations "baseless."

SiriusXM renews subscriptions automatically at the end of each subscription term, and continues to charge consumers “unless they undergo a lengthy and burdensome endurance contest that Sirius created and implemented as a strategy for keeping as many consumers from canceling as possible,” said the complaint.

Even when consumers “outlast" SiriusXM and successfully complete the process, their subscriptions aren’t always canceled, said the complaint. Its strategy for “frustrating cancellations” includes forcing most subscribers to interact with a live customer service agent, even though SiriusXM has the ability to process cancellations without the involvement of live agents, it said.

SiriusXM trains its agents to put subscribers “through a lengthy, six-part script,” said the complaint. The agents also are schooled to refuse cancellation “until either the agent reaches the end of the script,” or subscribers’ frustration reaches a point where they just “give up altogether,” it said.

AG James seeks an injunction permanently enjoining SiriusXM from violating New York law by “engaging in the fraudulent, deceptive, and illegal practices” described in the complaint.

James also seeks an "accounting" from SiriusXM of the name and address of each consumer who canceled or sought to cancel a SiriusXM subscription since January 2019, “together with the date of the cancellation and the date of any prior cancellation interactions.” The accounting also would document the duration of all cancellation interactions, and the amount of any funds collected from such consumers subsequent to the cancellation interaction and the dates and basis for such charges, it said.

A SiriusXM spokesperson emailed to say that "it's telling" that James issued a news release trumpeting the lawsuit early Wednesday "before providing SiriusXM with a copy of the complaint." Like other consumer businesses, SiriusXM offers "a variety of options for customers to sign up for or cancel their SiriusXM subscription," said the spokesperson: "Upon receiving and reviewing the complaint, we intend to vigorously defend against these baseless allegations that grossly mischaracterize SiriusXM’s practices.”