SiriusXM Subscription Cancellation Process Sparks New York Lawsuit
New York is suing SiriusXM over a drawn-out cancellation process allegedly aimed at trapping consumers in unwanted subscriptions.
A lawsuit, filed in New York’s state Supreme Court on Wednesday, points to a probe by prosecutors, who take issue with Sirius training employees to put “subscribers through a lengthy, six-part script” that includes pitching numerous retention offers and to “refuse cancellation” until customers abandon the process.
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In a statement, a Sirius spokesperson said the complaint “grossly mischaracterizes” the company’s practices. “It’s telling that the New York Attorney General issued a press release before providing SiriusXM with a copy of the complaint,” the statement continued. “Like a number of consumer businesses, we offer a variety of options for customers to sign up for or cancel their SiriusXM subscription and, upon receiving and reviewing the complaint, we intend to vigorously defend against these baseless allegations.”
The suit points to a series of complaints from consumers to the New York attorney general’s office, Federal Trade Commission and Better Business Bureau. In 2014, Sirius and 46 states reached a settlement that required the company to simplify its cancellation process. Under the deal, Sirius — which has nearly 35 million subscribers, nearly 2 million of whom are New Yorkers — was barred from engaging in “harassing or abusive” attempts at dissuading consumers from cancelling.
According to the complaint, subscribers calling to cancel their subscriptions are first connected with an automated system that presents them with new offers before having to wait to be connected to a live agent. From 2019 to 2021, more than 578,000 consumers allegedly abandoned their efforts while waiting.
“Sirius XM doesn’t allow users to cancel their service in their online portal without speaking to a customer service representative,” a subscriber said in an affidavit. “Then, when trying to speak to a customer service representative in order to cancel, the wait times are exorbitant. When I finally spoke to the first customer representative and explained that I had been waiting nearly a half an hour, I was promptly hung up on. Which means I had to wait again.”
A chat-to-cancel option on its website is equally as frustrating and time-consuming, the suit says. Consumers are forced to scroll through a series of offers, after which they’re routed to an automated customer support chatbot. Once they express their intent to cancel, they’re placed in a queue to chat with a live customer agent. According to the complaint, average wait times exceeded 15 minutes in an eight month period in 2021.
The suit claims live agents, when connected with subscribers, are instructed by the company to take steps aimed at hindering the cancellation process. They include asking “probing questions” about listening habits, repeatedly underscoring the benefits of a subscriber’s existing subscription and offering to change the terms of a plan.
“Sirius agents are instructed to follow any offer that is declined with even more questioning, about the reason for the consumer’s disinterest,” states the suit, which notes that agents are “instructed to take all of these steps even though they have the ability to process cancellations immediately.”
According to the complaint, training materials teach agents that they “should not take ‘no’ for an answer.” Their pay depends, in part, on how many subscribers retain subscriptions after indicating an intent to cancel.
“Sirius’s approach also leaves ample room for errors—or even misconduct—by its agents. Some consumers who communicated their intent to cancel to a live Sirius agent, and who understood that the cancellation was completed, nevertheless continued to be charged.
In 2021, it took subscribers nearly 12 minutes to cancel their subscriptions if they called in, the complaint says.
Additionally, New York prosecutors take issue with Sirius refusing to cancel subscriptions for consumers who have an outstanding balance, which increases their debt for a service they don’t want.
The suit claims fraud, among other violations of state and federal consumer protection laws. It seeks a court order blocking Sirius from further engaging in deceptive business practices, as well as further information on consumers who cancelled their subscriptions but continued to be charged.
The FTC has been scrutinizing difficult cancellation processes. In June, it sued Amazon for allegedly duping consumers into signing up for its Prime service and then impeding them from canceling their subscriptions.
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