Caught In Subscription Maze With SiriusXM? Audio Entertainment Firm Faces Lawsuit Over Cancellation Process
Portfolio Pulse from Nabaparna Bhattacharya
Sirius XM Holdings Inc. (NASDAQ:SIRI) is facing a lawsuit from New York Attorney General Letitia James for allegedly trapping consumers in unwanted subscriptions with a burdensome cancellation process. The investigation by the OAG revealed that SiriusXM requires subscribers to interact with an agent to cancel, with the process being intentionally prolonged. The company also trains agents to resist cancellation requests, leading to an average cancellation time of 11.5 minutes by phone and 30 minutes online. The lawsuit accuses SiriusXM of fraud and deception in its cancellation practices. SIRI shares dropped 1.65% to $5.360.
December 20, 2023 | 6:21 pm
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Sirius XM Holdings Inc. is being sued for making its subscription cancellation process difficult, which could damage its reputation and customer trust, potentially impacting subscriber numbers and revenue.
The lawsuit from the NY Attorney General alleging deceptive practices in subscription cancellations could lead to negative publicity, eroding consumer trust and potentially leading to a decrease in subscriber numbers. This negative sentiment is likely to put downward pressure on SIRI's stock price in the short term, as evidenced by the 1.65% drop on the day of the announcement.
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