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
“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
the Attorney General’s website, or by mail to PO Box 33059, Detroit MI 48232-5059.
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
- 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
- Prohibit incentive compensation for customer service representatives
based solely on “saves,” or retaining current customers who attempt to
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