SiriusXM violated federal consumer protection 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 while SiriusXM's practices weren't fraudulent, they violated the Restore Online Shoppers' Confidence Act (ROSCA), which mandates a "simple" cancellation process. The ruling came after Attorney General Letitia James filed a lawsuit describing the cancellation process as an "endurance contest."

Key findings from the ruling:

• Customers faced "inevitable wait times" before reaching agents
• Agents were instructed to treat every "no" as a request for more information
• The company made cancellation more complex than subscription sign-up
• Four of five lawsuit counts were dismissed, including fraud allegations

SiriusXM plans to appeal the ruling while maintaining their practices weren't deceptive. The company highlighted that Judge Frank acknowledged their efforts to prevent fraud, citing training materials that instructed agents to be "fast, friendly, and efficient."

This ruling precedes the Federal Trade Commission's new "click-to-cancel" rule, effective early 2025, which will require easier subscription cancellations across various services including streaming, pay-TV, and gym memberships. FTC Chair Lina Khan stated the rule will "end these tricks and traps, saving Americans time and money."

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