A New York judge has ruled that SiriusXM's complex cancellation process violates federal law, specifically the Restore Online Shoppers Confidence Act, which mandates easy subscription cancellations. This decision follows a lawsuit by New York Attorney General Leticia James, who argued that SiriusXM's process was intentionally burdensome. The ruling requires SiriusXM to simplify its cancellation process for New York customers, although the company plans to appeal. This comes as the FTC prepares to enforce a "click to cancel" rule next year, ensuring easier subscription cancellations.
A New York judge has ruled that SiriusXM's complex cancellation process violates the Restore Online Shoppers Confidence Act, which mandates easy subscription cancellations. This decision follows a lawsuit by New York Attorney General Leticia James, who argued that SiriusXM's process was intentionally burdensome. The ruling requires SiriusXM to simplify its cancellation process for New York customers, although the company plans to appeal. The Federal Trade Commission is also introducing a 'click to cancel' rule to ensure easier subscription cancellations nationwide.
New York's attorney general is suing SiriusXM for its difficult cancellation process, claiming that the company deliberately wastes subscribers' time by bombarding them with questions and offers. The suit seeks damages for affected customers and a $5,000 penalty for each violation. SiriusXM reported a drop in subscribers, and the company plans to vigorously defend against the allegations. In addition to the cancellation issue, SiriusXM has invested in podcasting and recently launched a new app resembling Spotify.
SiriusXM is being sued by the New York attorney general's office for allegedly trapping customers in unwanted subscriptions and making it difficult for them to cancel. The investigation found that the company forces subscribers to call or chat with an agent to cancel, deliberately prolonging the process to prevent cancellations. SiriusXM agents are trained to keep customers on the phone for a lengthy conversation and offer retention offers to discourage cancellation. The attorney general is seeking compensation for affected customers, penalties for fraud, and a simple cancellation process.
The subscription economy has grown significantly over the past decade, with consumers subscribing to various services and often forgetting about them. Research shows that the average consumer spends $219 on subscriptions every month, $133 more than they realize. Businesses take advantage of this forgetfulness, boosting revenues by making it difficult to cancel subscriptions. The Federal Trade Commission (FTC) has proposed a "click to cancel" rule that would make it as easy to cancel a subscription as it is to start one. However, trade groups argue that multi-step cancellation processes protect consumers and offer better deals. Some consumer advocacy groups believe the FTC's proposed rule doesn't go far enough and are urging for stronger regulations to protect consumers from unwanted charges.
The Federal Trade Commission (FTC) has sued Amazon for allegedly using "dark patterns" to make it difficult for users to cancel their Prime subscription. The FTC claims that Amazon intentionally misled customers and used manipulative tactics to hold onto users for as long as possible. Amazon is accused of violating US law and intentionally slowing down the investigation. The FTC is seeking civil penalties, monetary fines, and a permanent injunction against the company.
