FOR IMMEDIATE RELEASE
NEWS ADVISORY
December 9, 2014
For More Information, contact:
Luther Strange
Joy Patterson (334) 242-7491
Alabama Attorney General
Claire Haynes (334) 242-7351
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AG STRANGE ANNOUNCES SETTLEMENT
WITH SIRIUS XM FOR CONSUMER REFUNDS
(MONTGOMERY) -Attorney General Luther Strange, along with the Attorneys
General of 45 states and the District of Columbia, announced that Sirius XM Radio Inc.
of New York has agreed to provide restitution to eligible consumers to resolve claims
that the satellite radio company engaged in misleading advertising and billing practices
and to pay $3.8 million to the states.
“It is essential that companies be straightforward with consumers and that their
customers may rely upon the information provided regarding their transactions,” said
Attorney General Luther Strange. “I am pleased that this agreement puts in place
significant reforms and will provide refunds to eligible consumers.”
The Attorneys General allege that Sirius XM engaged in misleading, unfair, and
deceptive acts or practices in violation of state consumer protection laws.
The states’ investigation focused on consumer complaints involving: difficulty
canceling contracts; cancellation requests that were not honored; misrepresentations
that the consumers’ 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.
Consumers who have not previously filed a complaint with their Attorney
General for the practices covered by this settlement have until May 3, 2015, to file a
complaint to be considered for restitution. To be considered for restitution under this
settlement, eligible consumers must file a complaint with the Attorney General’s Office
or to Sirius. The complaints must be concerning conduct from July 28, 2008, to Dec. 4,
2014, and involving an identifiable loss that has not been previously resolved.
Under the terms of the settlement, 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.
501 Washington Avenue * Montgomery, AL 36104 * (334) 242-7300
www.ago.alabama.gov Page 2 of 2 - 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.
Alabama consumers who have a complaint regarding Sirius XM’s business
practices addressed by this settlement are urged to contact Attorney General Strange’s
Consumer Protection Section within the next 150 days by calling toll-free to 1-800-392-
5658; by writing to 501 Washington Avenue, P.O. Box 300152, Montgomery, AL 36130-
0152, Attention: Sirius XM Settlement; or through the Attorney General’s website at
www.ago.alabama.gov. Consumers can also contact Sirius XM directly with their
complaints. Consumers may request forms to file a complaint by mail to P.O. Box 33059,
Detroit, MI 48232-5059 or by going to the following web address:
https://listenercare.siriusxm.com/app/answers/detail/a_id/6436/.
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