Sirius XM to pay $3.8 million to settle complaints

AP News
|
Posted: Dec 05, 2014 1:17 PM

NEW YORK (AP) — Some Sirius XM customers, who were charged for satellite radio service they didn't want, can now apply for a refund.

Sirius XM agreed Friday to pay $3.8 million to settle complaints that it misled customers with its advertising and billing practices. The money will be split among 46 states and the District of Columbia. Those in four states, California, Hawaii, Wyoming and New York, can't apply for a refund, Sirius said.

State attorneys general said customers complained that it was difficult to cancel their Sirius XM contracts, and some said that Sirius XM automatically renewed contracts without asking.

As part of the settlement, Sirius XM agreed to make several changes to its business, including improving its cancellation process and sending notices before automatic renewals. Sirius XM said in a statement that the changes have already been made.

Customers who may have been unfairly charged between July 28, 2008, and Dec. 4, 2014, can apply for a refund from their state's attorney general office or from Sirius XM. Contact information for Sirius XM is available online at siriusxm.com/settlementprogram.

Sirius XM Holdings Inc., based in New York, has about 26.7 million subscribers. The company said the settlement will have no material financial effect on its business.

Its stock fell 10 cents, or 2.8 percent, to $3.48 in afternoon trading Friday.