R.I. to receive $48K through Sirius radio settlement

ATTORNEY GENERAL Peter F. Kilmartin said on Thursday that the state of Rhode Island will receive approximately $48,000 through a settlement with Sirius XM Radio Inc. / COURTESY R.I. ATTORNEY GENERAL'S OFFICE
ATTORNEY GENERAL Peter F. Kilmartin said on Thursday that the state of Rhode Island will receive approximately $48,000 through a settlement with Sirius XM Radio Inc. / COURTESY R.I. ATTORNEY GENERAL'S OFFICE

PROVIDENCE – The state of Rhode Island will receive approximately $48,000 through a settlement with Sirius XM Radio Inc., Attorney General Peter F. Kilmartin said Thursday.
Kilmartin, along with the attorneys general of 45 states and the District of Columbia, said in a press release on Thursday that Sirius XM Radio of New York agreed to pay $3.8 million to the states and to provide restitution to eligible consumers to resolve claims that the satellite radio company engaged in misleading advertising and billing practices.
Consumers who have not previously filed a complaint with their attorney general for the practices covered by this settlement have 150 days from today to do so in order to be considered for restitution.

“Sirius made it nearly impossible for consumers to cancel contracts and tacked on unauthorized fees to accounts. This settlement provides those consumers with restitution for their claims and requires that the company implement a consumer-centric approach to its billing and marketing practices. If Sirius put the consumer before profits from the outset, the company could have avoided this lengthy and costly investigation and maintained satisfied customers. I hope this settlement serves as a valuable a lesson to other companies that it is always better to put the customer first,” Kilmartin said.

Kilmartin alleged that Sirius XM engaged in misleading, unfair and deceptive acts or practices in violation of state consumer protection laws.

The investigation 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.

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Under the terms of the settlement, Sirius XM agreed to:

  • Clearly 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 available plans in advertisements
  • Provide advance notice via mail or email about upcoming automatic renewals for plans lasting longer than six months
  • Revise 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

To be considered for restitution under this settlement, consumers must file a complaint concerning conduct from July 28, 2008, to Dec. 4, 2014, that involves an identifiable loss that has not been previously resolved with their state attorney general.

To file a complaint, Rhode Island consumers should contact the Consumer Protection Unit at the Office of Attorney General by calling (401) 274-4400 or emailing contactus@riag.ri.gov.

Consumers can also contact Sirius XM directly with complaints. Complaints can be sent by mail to PO Box 33059, Detroit MI 48232-5059 or by visiting www.siriusxm.com/settlementprogram.

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