SiriusXM violated federal law by making subscription cancellations unnecessarily difficult, according to a New York State Supreme Court ruling. The satellite radio company required customers to speak with live agents to cancel, while allowing sign-ups without agent interaction.

Justice Lyle Frank determined that SiriusXM's practices violated the Restore Online Shoppers' Confidence Act (ROSCA), which mandates "simple" cancellation processes. The ruling cited "inevitable wait times" and company policies instructing agents to treat customer rejections as requests for more information.

Key points from the ruling:

• The practices violated federal law but didn't constitute fraud
• Four of five lawsuit counts were dismissed
• The company's retention tactics were deemed "frustrating" but not deceptive
• SiriusXM had taken steps to prevent outright fraud

SiriusXM plans to appeal the decision while emphasizing that most charges were dismissed. The company also committed to following the Federal Trade Commission's new "click-to-cancel" rule, effective early 2025, which will require easier subscription cancellation processes across various services.

"The FTC's rule will end these tricks and traps, saving Americans time and money," stated FTC Chair Lina Khan, highlighting the broader implications for subscription-based services.

The lawsuit, filed by Attorney General Letitia James, originally described the cancellation process as a "burdensome endurance contest." While the court agreed the process was overly complicated, it rejected claims of fraudulent conduct or deceptive practices under New York state law.

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