PHOENIX — The popular satellite radio company Sirius XM agreed to pay $230,000 to the state of Arizona as well as provide restitution to customers to solve claims of misleading advertising and billing practices.
This agreement was part of a national settlement totaling $3.8 million, which will be paid out to 45 states and the District of Columbia.
Arizona Attorney General Tom Horne announced the settlement on Thursday, along with the attorney generals of the other states involved, who all served on a task force respecting the satellite radio company.
Among the company’s chief offenses were not honoring contract cancellation requests, automatically renewing contracts without notifying the customers and unauthorized fees.
Horne said as a result of the settlement, Sirius XM has agreed to do more than just pay money to the states.
“In addition to paying the money, they’ve agreed to change their system and to no longer provide incentive compensation for customer service representatives based solely on what they called “saves,” or retaining customers who were attempting to cancel,” he said.
Sirius XM has also agreed to more clearly disclose all terms and conditions at the time of each sale, provide advance notice regarding automatic renewals and make it easier for customers to cancel their contracts.
Consumers who haven’t yet filed a complaint with the attorney general’s office have 150 days after the settlement is executed to file a complaint eligible for restitution. The incident must have happened between July 28, 2008 and Dec. 4, 2014.
Horne said Arizonans can contact his office if they think they might be eligible for restitution in this case.
“Arizonans can get refunds,” he said. “People can contact our office and we’ll arrange to have claims made for refunds.”
Consumers can file complaints by calling the Consumer Information & Complaints Unit at (602) 542-5763, (520) 628-6504 or, if outside the Phoenix metro area, (800) 352-8431. They can also file them online at www.azag.gov.