The attorneys at SiriusXM have been busy. Not only are they dealing with a series of lawsuits involving The Turtles and pre-1972 music, but now they've completed a $3.8 million deal to be paid across 46 states with regard to shifty billing and advertising practices, according to Billboard. According to the suit, contracts didn't make it clear to users that the service could renew itself. Users who wished to cancel their subscriptions didn't realize that they needed to take action to do so, or else the company would assume they wished to renew. More problematic is that frequently the prices had increased as well.
"Consumers shouldn't have to read the super-fine print or jump through hoops to understand and cancel their service contracts," said Douglas Gansler, Attorney General of Maryland. "Requiring Sirius to change its business practices means customers will be better informed about their rights and the terms of their agreement."
A series of new requirements were agreed upon by the company as part of the acquiescence. Sirius XM will now e-mail customers to alert them of approaching end-of-contract periods, although it seems renewals will remain automatic. The company will also adjust its cancellation process to make it easier for subscribers and, perhaps most interestingly, end systems of customer service works incentives that reward employees for retaining customers who have intentions to cancel. Although retail sales incentives work across many industries, Sirius must want to avoid shifty behavior from its only employees, lest it results in more legal issues.
SiriusXM noted in its statement that the $3.8 million payout would have "no material financial effect" on the company, perhaps to keep shareholders at ease.
