Michigan To Get $100,000 In Sirius XM Settlement
LANSING (WWJ/AP) - Michigan will receive nearly $110,000 from Sirius XM Radio Inc. in a national settlement to resolve complaints about misleading advertising and billing practices.
Michigan Attorney General Bill Schuette said Thursday the money will go into the state's general fund. Sirius XM agreed to pay a total of $3.8 million to 45 states and the District of Columbia.
In addition to the lump sum settlement, Sirius XM will make restitution to consumers who lost money due to billing and contract disputes that occurred between July 2008 and August 2014.
"Business practices that create confusion and obstacles to thwart a consumer's right to cancel an unwanted service are unfair," said Schuette. "This is especially true when businesses offer an introductory 'free trial' service period with customer contracts that then renew automatically."
The states' investigation focused on consumer complaints alleging: difficulty canceling contracts; failure to honor cancellation requests; misrepresentations that the consumer's Sirius XM service would be canceled and not renewed; contracts that were automatically renewed without consumers' notice or consent; unauthorized fees; higher, unexpected rates following a low introductory rate; and Sirius XM failing to provide timely refunds.
As part of the settlement, Sirius XM agreed to clearly detail its billing and contract terms.
Eligible consumers looking for a refund should contact the attorney general's office to file a complaint prior to May 3, 2015.
Complaints can be submitted online at www.Michigan.gov/ag, or by mailing a letter explaining the problem to the Attorney General's Consumer Protection Division at: P.O. Box 30213, Lansing, MI 48909.
TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
