TOPEKA – (December 4, 2014) – The nation’s largest satellite radio provider has agreed to repay consumers after being accused of violating state consumer protection laws, Attorney General Derek Schmidt announced today.
Schmidt, along with the attorneys general of 43 other states and the District of Columbia, reached a settlement with Sirius XM Radio, Inc., to provide restitution to eligible consumers. The states alleged that the company engaged in misleading advertising and deceptive billing practices, such as automatically renewing customers' subscriptions without sufficient notice and making cancellation difficult. In addition, the company agreed to pay $100,000 for violating the Kansas No Call Act.
“Companies that sell services to Kansas consumers must play by the rules,” Schmidt said. “Being upfront and honest about the cost of a service is essential to allowing consumers to make informed purchasing decisions. Companies must also respect the wishes of consumers who choose to list their numbers on the Do-Not-Call list.”
Sirius XM also agreed to make changes to its business practices, including:
- clearly disclosing all terms and conditions, such as billing frequency, contract length and cancellation policy at the time of sale;
- providing consumers advance notice via mail or email if their contract is about to automatically renew; and
- revising its cancellation procedures to make it easier for consumers to cancel.
Consumers may be eligible for restitution if they have filed a complaint regarding Sirius XM’s business practices since July 28, 2008. The deadline for filing complaints is May 1, 2015. To file a complaint, Kansas consumers should contact the attorney general’s consumer protection division at www.InYourCornerKansas.org or (800) 432-2310. Consumers may also file complaints directly with Sirius XM by mail to PO Box 33059, Detroit, MI 48232 or online at www.siriusxm.com/settlementprogram.