Weeks after federal regulators announced a “click-to-cancel” rule for subscription companies, a New York judge ruled that SiriusXM made it too difficult for customers to terminate their services.
New York State Supreme Court Justice Lyle Frank's ruling, issued Thursday, upheld elements of a lawsuit brought against the satellite audio company in 2023 by New York Attorney General Letitia James. In an ”
In a statement provided to Deadline on Friday, SiriusXM said it plans to appeal the ruling. The company also said the decision showed that James's initial complaint, which alleged the company “continued to engage in repeated, persistent and unlawful fraud,” was untrue.
The company added that Frank “dismissed virtually all of the charges against SiriusXM, finding that SiriusXM's policies were not misleading or deceptive.” Importantly, the court ruled that SiriusXM showed through “a significant number of materials… that they took repeated steps to avoid creating a “This atmosphere” of fraud or deception. While the court found some technical violations of federal law, it did not find that SiriusXM deceived anyone or committed any fraud at all.
The statement also confirmed that SiriusXM will comply with the FTC's new rule for a wide range of subscriptions, from streaming to pay TV and gym memberships. This rule is scheduled to take effect in early 2025.
“Too often, companies make people jump through endless hoops just to opt out,” FTC Chairwoman Lena Khan said last month. “The FTC's ruling will end these scams and traps, saving Americans time and money. No one should have to pay for a service they no longer want.” The FTC said it acted after receiving more than 16,000 comments from the public.
SiriusXM had 33 million subscribers as of the end of the third quarter on September 30.
