Koster settles with Sirius XM

Missouri Attorney General Chris Koster joined 45 other attorneys general in reaching a settlement agreement with satellite radio company Sirius XM Radio Inc.

The settlement includes $3.8 million for states – $75,000 for Missouri – and restitution for consumers to resolve claims the satellite radio company engaged in misleading advertising and billing practices, according to a news release.

“This company unfairly profited by misleading customers on pricing and contract practices,” Koster said in the release. “Missouri consumers who feel they were misled by Sirius XM should contact my office to file a complaint.”

According to the release, the states’ investigation focused on consumer complaints involving cancellation requests that were not honored, misrepresentations that 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 failure to provide timely refunds.
 
Under the terms of the settlement, Sirius XM also 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; and
• prohibit incentive compensation for customer service representatives based solely on “saves,” or retaining current customers who attempt to cancel.

Missouri consumers who believe they were unfairly charged between July 28, 2008, and Dec. 4 have 150 days to file a complaint for consideration, according to the release.