A New York state judge has found Sirius XM Holdings liable in the lawsuit filed by New York State Attorney General Letitia James, who accused the streaming and satellite radio company that they made canceling subscriptions too difficult for customers.
While denying allegations of fraud and deceptive practices, Justice Lyle Frank of the State Supreme Court in Manhattan said Sirius’ policies violated the federal Online Consumer Confidence Restoration Act) .
Judge Frank said Sirius made canceling subscriptions “clearly easier” than signing up, by requiring subscribers to speak at length with agents trained to stop cancellations, and to listen to up to five offers from other services before license was suspended.
The judge said Sirius must change its cancellation practices to comply with the law and pay unspecified damages.
Sirius said Friday it would appeal the Nov. 21 decision.
It also said it would comply with a US Federal Trade Commission rule requiring companies to cancel subscriptions as easily as signing up. The “click to delete” rule will take effect on January 14, 2025.
Last December, James sued Sirius, claiming that the company’s data in New York showed that subscribers took an average of 11 1/2 minutes to cancel their subscriptions over the phone. and 30 minutes to cancel their subscriptions online.
She said Sirius could cancel subscriptions with the click of a button, or let customers do it themselves.
“My office sued SiriusXM to protect consumers, and as a result of our actions, the company must streamline its termination process to stop New Yorkers,” Ms. James said in a statement Friday.
2024-11-22 15:17:00
#Sirius #liable #York #lawsuit #subscription #cancellation
**Considering the ethical implications raised by the judge’s ruling, do you believe companies should be obligated to prioritize ease of cancellation for all products and services, or are there situations where other factors should take precedence?**
Here are some open-ended questions to stimulate discussion about the Sirius XM lawsuit, divided into thematic sections:
**I. Consumer Rights and Business Practices**
1. **The judge ruled that Sirius XM’s cancellation process violated the Online Consumer Confidence Restoration Act. Do you think this law adequately protects consumers in the digital age, or does it need updating? Why?**
2. **Some argue that companies should be able to make a profit by any legal means, while others believe that companies have a responsibility to treat customers fairly. Where do you stand on this spectrum, and how does this case illustrate your stance?**
3. **Sirius XM claims its cancellation process was designed to retain customers. Do you think it’s ethical for companies to prioritize customer retention over ease of cancellation? Do you think there’s a balance to be struck?**
**II. The Impact of Technology**
1. **The article mentions the “click to delete” rule coming into effect in 2025. How do you think technology can be used to both empower and protect consumers in the digital marketplace? What are some examples of both positive and negative uses of technology?**
2. **This case involves online subscriptions. How do you think the ease (or difficulty) of canceling online subscriptions compares to other types of services or products? Are there specific industries or services where cancellation practices should be more heavily regulated?**
**III. Legal and Regulatory Implications**
1. **The lawsuit against Sirius XM was brought by the New York State Attorney General. What role do you think state-level officials should play in regulating businesses within their jurisdiction?**
2. **Sirius XM announced that it will appeal the judge’s decision. What are some potential outcomes of the appeal, and how might those outcomes affect other companies with similar cancellation practices?**
3. **Do you think regulations like the “click to delete” rule are necessary to protect consumers, or do they overstep the bounds of government intervention in the free market?**
**IV. Broader Discussion:**
1. **Have you ever experienced frustration when trying to cancel a subscription or service? Share your experience and discuss what made it difficult. How could the company have improved its cancellation process?**
2. **What are the ethical responsibilities of consumers when entering into subscription agreements? How can consumers better protect themselves from potentially problematic cancellation practices?**
3. **In a world where businesses increasingly rely on recurring revenue models through subscriptions, what are some potential solutions for balancing the needs of businesses with the rights of consumers?**
These open-ended questions are designed to encourage thoughtful discussion and exploration of various perspectives on the Sirius XM lawsuit.
