SiriusXM agreed to a $28 million settlement to resolve multiple class action lawsuits alleging the satellite radio company made it nearly impossible for customers to cancel their subscriptions. The settlement compensates eligible class members for unlawful cancellation practices, hidden fees, and unauthorized robocalls—with individual payouts reaching up to $1,500 each. This wasn’t a minor customer service complaint; New York courts found SiriusXM violated federal consumer protection laws by deliberately trapping customers in subscriptions they wanted to leave.
The core problem was structural: SiriusXM made canceling a subscription far more difficult than signing up for one. While subscribing required a few clicks online, canceling forced customers through a grueling process that included multiple retention offers, upselling tactics, and mandatory interactions with live agents trained to refuse cancellation requests. Meanwhile, the company buried a 21.4% “Music Royalty Fee” in its pricing that wasn’t clearly disclosed upfront, catching customers off guard when billing statements arrived.
Table of Contents
- How Did SiriusXM Make Cancellation So Difficult?
- The Hidden Music Royalty Fee Problem
- The Court’s ROSCA Violation Finding and Judge’s Ruling
- What Does the Settlement Mean for Eligible Customers?
- Common Issues When Claiming and Eligibility Questions
- How Other Subscription Services Have Faced Similar Issues
- What Changes Has SiriusXM Made and What Comes Next?
How Did SiriusXM Make Cancellation So Difficult?
SiriusXM’s cancellation process was intentionally designed to frustrate customers into giving up. The company required customers to speak or chat with live agents rather than offering a simple online cancellation method. During these interactions, agents followed a structured six-part script that forced customers through as many as five separate retention offers before even considering the cancellation request. This wasn’t accidental friction—internal training documents showed agents were explicitly told to “not take ‘no’ for an answer” and to deliberately prolong cancellation interactions to persuade customers to stay. A real-world example shows how punishing this was: A customer wanting to cancel might call customer service, explain they no longer wanted the service, and then be offered a discount for three months.
When they declined, they’d be offered a different discount package. This cycle repeated multiple times, with each “no” met with another offer, another pitch, and more reasons to keep the subscription active. Only after exhausting all retention scripts would the agent finally process the cancellation—if the customer hadn’t already given up and hung up in frustration. This practice violated the Restore Online Shoppers’ Confidence Act (ROSCA), a federal law that requires companies to make cancellation at least as easy as signup. A New York Supreme Court justice agreed, finding that SiriusXM’s process was “significantly more complicated” than the simple signup procedure most customers experienced.
The Hidden Music Royalty Fee Problem
Beyond the cancellation barrier, SiriusXM concealed a 21.4% “Music Royalty fee” that customers didn’t discover until they received their first bill. This fee wasn’t disclosed clearly during signup—it appeared buried in fine print or only after the transaction was already complete. For customers on lower-priced plans, this fee could nearly double their monthly cost, turning a seemingly affordable subscription into an unexpected expense. The hidden fee component made the situation worse for consumers.
A customer might sign up thinking they’d pay $10 or $15 per month, only to see their first bill total $12 to $19 when the Music Royalty Fee was added. This created a compounding problem: customers felt trapped by both the cost surprise and the nearly impossible cancellation process. Even worse, the fee didn’t clearly correspond to any actual cost SiriusXM incurred—the percentage seemed arbitrary and unexplained, leaving customers uncertain whether they were being charged fairly. The settlement addressed this deception as a separate violation, recognizing that the hidden fee and the cancellation barrier worked together to keep customers locked in against their will. Courts found that clear disclosure of this fee upfront would have deterred many subscribers, making SiriusXM’s concealment particularly egregious.
The Court’s ROSCA Violation Finding and Judge’s Ruling
New York’s Attorney General sued SiriusXM in 2023, and the case resulted in a landmark ruling by Justice Lyle Frank of the New York Supreme Court, New York County. The court found that SiriusXM’s practices violated ROSCA by creating a cancellation procedure that was demonstrably more burdensome than the signup process. This wasn’t just a regulatory interpretation—it was a direct legal finding that the company’s practices were illegal under federal consumer protection law. The ruling was specific about what had to change.
The court ordered SiriusXM to implement a “simple cancellation method” that no longer requires customers to speak or chat with live agents. This meant customers could cancel entirely online, without having to navigate retention scripts or interact with company representatives trained to persuade them otherwise. The court recognized that allowing customers to cancel online without agent interaction was the only way to genuinely provide “simple” cancellation as required by law. Justice Frank’s decision set a precedent that satellite radio and similar subscription services couldn’t hide behind the excuse that their business model depends on high cancellation friction. The ruling made clear that ROSCA has teeth—companies can’t make cancellation deliberately harder than signup, no matter how profitable that practice might be.
What Does the Settlement Mean for Eligible Customers?
The $28 million settlement provides direct compensation to customers who were harmed by SiriusXM’s practices. Eligible class members can receive payments up to $1,500 each, depending on how long they were subscribed and how many times they attempted to cancel. The settlement divides payouts into categories: customers who were active during certain periods, those who tried to cancel multiple times, and those affected by the hidden fees. To claim compensation, customers typically need to provide proof of their subscription during the relevant period, such as credit card statements, billing records, or account confirmation emails.
The settlement’s claims process is designed to be straightforward, though deadlines do apply—customers who miss the filing window lose their right to compensation. Some settlements allow alternative claims pathways for customers who can’t easily locate documentation, such as affidavit-based claims where you certify your subscription details under penalty of perjury. One limitation of the settlement is that the per-person payout will likely be much lower than the $1,500 maximum in most cases. With millions of eligible class members sharing the $28 million fund, individual checks often range from $50 to $300—still meaningful compensation, but not a windfall. Customers should file their claims promptly to ensure payment, as unclaimed settlement funds sometimes revert to the defendant or are donated to consumer protection charities rather than distributed to remaining class members.
Common Issues When Claiming and Eligibility Questions
One frequent problem is determining whether you’re actually eligible. The settlement covers specific customer categories during defined time periods—typically customers who subscribed during a window of several years and were affected by the practices described in the lawsuit. If you cancelled your SiriusXM subscription years ago, you might fall within the class period; if you subscribed recently, you might not be eligible. Checking the official settlement website (not third-party claim processors) is essential to avoid confusion. Another common issue is documentation. If you no longer have access to your old billing records or can’t find your credit card statements from years ago, you may still be able to claim using an alternative verification method.
However, some settlements require more documentation than others, and the burden falls on you to find whatever evidence you can. It’s worth searching email archives for SiriusXM confirmation messages, checking your bank or credit card company’s online portal for historical statements, or looking through any subscription service records you might have saved. A warning: Be cautious of third-party “claim assistance” services that promise to help you file. While some are legitimate, others charge fees or request personal information they shouldn’t need. The official settlement administrator handles claims at no cost to you. If a service claims you must pay to receive your settlement money, that’s likely a scam. Legitimate settlements are always free to claim through official channels.
How Other Subscription Services Have Faced Similar Issues
SiriusXM wasn’t alone in using predatory cancellation practices. Planet Fitness, Adobe, Amazon Prime, and various streaming services have faced class actions and regulatory action for making cancellation intentionally difficult. These companies often require customers to call to cancel, use multiple confirmation screens designed to delay the process, or hide cancellation options in obscure menu locations.
The FTC and state attorneys general have increasingly cracked down on these “negative option” violations, making clear that companies across industries must respect customer choice at cancellation time. The common pattern is that subscription services profit more from customer inertia than from actual customer satisfaction. When cancellation is frictionless, companies must compete on service quality rather than trapping customers who want to leave. SiriusXM’s case highlighted just how far some companies will go to retain unwilling customers—making it a cautionary example for an entire industry.
What Changes Has SiriusXM Made and What Comes Next?
Following the court ruling, SiriusXM was required to implement simple online cancellation without mandatory agent interaction. The company now allows customers to cancel their subscriptions through their online account portal, removing the six-part retention script and multiple offer process that previously plagued cancellation. While this change benefits current and future customers, it came only after legal pressure forced the company’s hand—SiriusXM had no incentive to improve this experience voluntarily.
The settlement also opens the door for continued regulatory scrutiny. State attorneys general are now more alert to subscription cancellation barriers, and FTC enforcement of ROSCA has intensified. For SiriusXM specifically, complying with the court order and settlement terms is being monitored, with potential penalties for future violations. For consumers, the case demonstrates that persistent legal action can force even well-established companies to abandon practices they believed were untouchable.
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