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ATTORNEY GENERAL JANET T. MILLS ANNOUNCES MULTISTATE SETTLEMENT WITH SIRIUS XM
December 11, 2014
Augusta, Maine – Attorney General Janet T. Mills, along with the attorneys general of 44 states and the District of Columbia, announced today that Sirius XM Radio Inc. of New York has agreed to pay $3.8 million to the states and to provide restitution to eligible consumers to resolve claims that the satellite radio company engaged in misleading advertising and billing practices.
The states’ investigation focused on consumer complaints involving: difficulty canceling contracts; cancellation requests that were not honored; misrepresentations that the consumer’s Sirius XM 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 XM failing to provide timely refunds.
Under the terms of the settlement, formally known as an Assurance of Voluntary Compliance, Sirius XM will make significant changes to its business practices. Specifically, Sirius XM 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 email about upcoming automatic renewals for plans lasting longer than six months.
- Revise the 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 XM will pay the states, Sirius XM also will provide restitution to eligible consumers who have complaints about the problems addressed by the settlement.
To be considered for restitution under this 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.
Maine Consumers who have a complaint regarding Sirius XM’s business practices addressed by this settlement are urged to contact Sirius XM directly before May 3, 2015. Complaints can be sent by mail to P.O. Box 33059, Detroit, MI 48232-5059 or by going to the following web address: www.siriusxm.com/settlementprogram.