Attorney General Masto Announces $3.8 Million Multistate Settlement with Sirius XM

December 4, 2014

Las Vegas, NV – Nevada Attorney General Catherine Cortez Masto, along with 44 state attorneys general and the District of Columbia, announced today a $3.8 million settlement with  Sirius XM Radio Inc. of New York to resolve claims that the satellite radio company engaged in misleading advertising and billing practices.  Eligible consumers may receive restitution.

“Consumers should be adequately and clearly informed of cancellation provisions and other material contract terms that apply to their services,” said Masto.  “Furthermore, if a consumer chooses to cancel a service, they should be able to do so conveniently, without harassment or delay.  Through this settlement, Sirius is committing to be more transparent, responsive and fair with its customers.”

An investigation led by the Ohio Attorney General’s office, 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.  The attorneys general allege that Sirius XM engaged in misleading, unfair, and deceptive acts or practices in violation of state consumer protection laws.

Eligible Consumers Should File a Claim
Nevada consumers who experienced one or more of these problems with Sirius XM at any time since July 28, 2008 are encouraged to file a complaint. Consumers have until May 3, 2015 to file a complaint to be considered for a refund. Anyone who complained previously to either the Attorney General’s Office or Sirius XM should file a new complaint by the deadline in order to be eligible for a refund. Consumers can file a complaint on Sirius XM’s website, the Attorney General’s website, or by mail to PO Box 33059, Detroit MI  48232-5059. 

Settlement Terms
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.
  • 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.

Joining the lead state of Ohio, the Executive Committee also consisted of Arizona, Connecticut, Tennessee, Vermont and Washington, D.C. Additionally, participating in the settlement are the attorneys general of: Alabama, Alaska, Arkansas, Colorado, Delaware, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, West Virginia and Wisconsin.

Lucas J. Tucker, senior deputy attorney general, represented Nevada in this matter.