Siriusxm Subscription Lawsuit Continuing to Charge
Sirius XM Radio Inc. will be paying restitution to consumers as well as nearly $73,000 to the state of Wisconsin out of a total of $3.8 million nationwide, as part of a multi-state settlement for allegedly engaging in misleading advertising and billing practices.
Wisconsin Attorney General J.B. Van Hollen's office announced the settlement between Sirius XM Radio and 45 state consumer protection agencies across the nation in a news release Thursday.
Wisconsin will get $72,801 to cover fees and costs. In addition to that, Sirius customers who overpaid as a result of the practices will get restitution.
According to the complaint by the states, Sirius XM customers complained that they had problems canceling their contracts.
Consumers said they had problems getting Sirius to honor their cancellation requests; that Sirius representatives lied and told them their service would be canceled and not renewed; that Sirius automatically renewed their contracts without their consent; that Sirius assessed them unauthorized fees; that Sirius' fees were higher than anticipated after the low introductory rate; and that Sirius took a long time to issue refunds.
According to the complaint, Sirius gave extra incentives to its customer service staff based on how many customers they retained when they attempted to cancel.
The settlement states that Sirius has cooperated with the states' investigation but that the company denies the allegations.
"Sirius XM believes that it has disclosed to consumers the material terms and conditions of its subscription plans, including the fact that subscription plans automatically renew at the then current rates and that it properly obtains consumers' consent to the automatic renewal of their subscription plans at the time of purchase," the settlement states.
"Sirius XM contends that it strives to provide and ensure the highest level of service to its subscribers, which includes promptly responding to any issues they may have regarding the automatic renewal of their subscription plans, incorrect billing or charges, cancellations or refunds."
Patrick Reilly, a spokesman for Sirius, added in an email to the Public Investigator that the company is "pleased" to have reached agreements to resolve the investigation and has already implemented the business practices required by the settlement.
"Under the terms of the settlements, we have agreed to provide, upon the request of the states, additional information about our consumer practices and to participate in a process designed to address any previously unresolved consumer complaints," Reilly wrote. "In addition we agreed to make a payment of approximately $4 million to the states that has no material fincial effect on the company."
How to get a settlement payment or refund from Sirius
Consumers who believe they were victims may be eligible for a refund. To get a refund, they need to file a complaint with the Wisconsin Department of Agriculture, Trade and Consumer Protection (see details below) by May 5, 2015, according to the release. Note that consumers who previously filed a complaint still have to re-submit their complaint.
"Those who are eligible should do so to ensure they see some relief as a result of this matter having been resolved," Van Hollen said in a statement. "My office will continue to work toward ensuring that Wisconsin consumers are not mislead about products and services being marketed to them."
Who is eligible?
- Sirius customers who previously submitted complaints to DATCP or other consumer protection agencies or to the Better Business Bureau between July 28, 2008, and Dec. 4, 2014, and whose complaints were unresolved. (Note: You need to resubmit your complaint!)
- Customers who have not previously submitted a complaint, but whose problems with Sirius are unresolved.
- Residents of any state is eligible, except for residents in California, Hawaii, Wyoming and New York.
What to do?
Submit a complaint with your full name, mailing address, phone number, email address and a brief summary of your previously unresolved complaint to Sirius or contact DATCP to file or re-submit your complaint.
- DATCP can be reached at (800) 422-7128. Consumers can also file a complaint on DATCP's website.
- Sirius XM can be reached on the settlement part of the Sirius XM website (www.siriusxm.com/settlementprogram), by email to cr_program@siriusxm.com or by snail mail to Sirius XM, P.O. Box 33059, Detroit, MI 48232-5059.
Sirius XM will send forms to explain the program and confirm eligibility.
What's the deadline?
May 3, 2015.
What's in the settlement?
Consumers will get restitution as part of the settlement.
As part of the settlement, which officials refer to as an "assurance of voluntary compliance," Sirius has also agreed to "clearly and conspicuously" disclose all terms and conditions at the point of sale. That includes the billing frequency, the term length, automatic renewal date and cancellation policy. The company also agreed not to misrepresent terms, conditions and obligations in its advertising.
From now on, Sirius will have to provide advance notice via mail or email about any upcoming automatic renewals for plans that last longer than six months.
The company also has to make it easier for customers to cancel. That includes prohibiting incentives for customer service representatives purely based on how many customers they retain when they attempt to cancel.
Liked this story? Get more consumer news, viral stories, scam alerts, cyber security and occasional freebies by following Gitte Laasby on Twitter @GitteLaasbyMJS or liking her Facebook page.
andersonthentoa1960.blogspot.com
Source: https://www.jsonline.com/newswatch/284778131.html
0 Response to "Siriusxm Subscription Lawsuit Continuing to Charge"
Post a Comment