Idaho joins settlement with Sirius XM Radio over misleading advertising, billing
Idaho has joined a $3.8 million multi-state settlement with Sirius XM Radio Inc. over misleading advertising and billing practices, through which Idaho consumers who had problems with the service can get reimbursed. "I am pleased we have reached an amicable settlement with Sirius,” said Idaho Attorney General Lawrence Wasden. “Idaho consumers were having too many problems with Sirius." Click below for Wasden's full announcement; Idaho's consumer protection division has received 10 complaints about Serius since 2009.
STATE OF IDAHO
OFFICE OF THE ATTORNEY GENERAL
LAWRENCE WASDEN
For Immediate Release
December 4, 2014
IDAHO JOINS $3.8 MILLION MULTISTATE SETTLEMENT WITH SIRIUS XM
(Boise) – Attorney General Lawrence Wasden has joined a $3.8 million settlement with Sirius XM Radio Inc. of New York (“Sirius”). The multistate settlement with Idaho and the attorneys general from 44 states and the District of Columbia resolves claims that Sirius engaged in misleading advertising and billing practices.
“I am pleased we have reached an amicable settlement with Sirius,” Attorney General Wasden said. “Idaho consumers were having too many problems with Sirius. Today’s settlement will address those concerns.”
The Idaho Consumer Protection Division has received 10 complaints since 2009. Consumers who have not previously filed a complaint with the attorney general for the practices covered by this settlement have 150 days after the settlement’s execution date to file a complaint to be considered for restitution.
Consumer complaints involved: difficulty canceling contracts; cancellation requests that were not honored; misrepresentations that the consumer’s Sirius service would be canceled and not renewed; contracts that were automatically renewed without consumers’ notice or consent; unauthorized fees; higher, unanticipated rates after a low introductory rate; and, Sirius failing to provide timely refunds.
Under the terms of the settlement, Sirius will make significant changes to its business practices. Specifically, the company agrees to:
- Clearly and conspicuously disclose all terms and conditions at the point of sale, such as billing frequency, term length, automatic renewal date, and cancellation policy.
- Make no misrepresentations about the available plans in advertisements.
- Provide advance notice via mail or e-mail about upcoming automatic renewals for plans lasting longer than six months.
- Revise cancellation procedures to make it easier for consumers to cancel.
- Prohibit incentive compensation for customer service representatives based solely on “saves,” or retaining current customers who attempt to cancel.
In addition to the $3.8 million that Sirius will pay the states, the company will also provide restitution to eligible consumers who have complaints about the problems addressed by the settlement.
Consumers must file a complaint concerning conduct from July 28, 2008, to December 4, 2014, involving an identifiable loss that has not been previously resolved with their state attorney general.
Consumers who have a complaint regarding Sirius XM business practices addressed by this settlement are urged to file a complaint with the Consumer Protection Division. A downloadable complaint form is available here. If consumers have additional questions concerning a claim, they may call the Consumer Protection Division at 334-2424 or(800) 432-3545.
Consumers also may contact Sirius XM directly with their complaints. Complaints can be sent by mail to PO Box 33059, Detroit MI 48232-5059 or by going to the following web address: www.siriusxm.com/
