A New York judge has ruled that SiriusXM's lengthy and burdensome cancellation process is illegal, violating a federal law that requires companies to make it easy for customers to cancel their subscriptions. The decision comes nearly a year after New York Attorney General Leticia James sued SiriusXM over claims that the company deliberately makes it difficult for customers to cancel their subscriptions.

The lawsuit, filed by the Office of the Attorney General, alleged that SiriusXM's cancellation process is designed to waste subscribers' time by forcing them to call a live agent, who then pitches them up to five retention offers in an attempt to delay cancellations. The investigation found that this process violates the Restore Online Shoppers Confidence Act (ROSCA), which mandates that companies implement "simple mechanisms" to cancel a subscription.

In his ruling, Judge Lyle Frank stated that SiriusXM's cancellation procedure is "clearly not as easy to use as the initiation method," citing the "inevitable wait times" associated with speaking with a live agent and the subscription offers they promote. The judge's decision requires SiriusXM to change its cancellation process for customers located in New York, making it easier for them to cancel their subscriptions.

This ruling comes as the Federal Trade Commission (FTC) is set to implement a new "click to cancel" rule next year, which will require companies to make canceling a subscription as easy as it is to sign up. The FTC has been cracking down on hard-to-cancel subscriptions, and SiriusXM's decision to appeal the ruling and comply with the FTC's incoming rule may indicate a shift in the company's approach to customer cancellations.

Attorney General James hailed the decision as a victory for consumers, stating that SiriusXM "illegally created a complicated cancellation process for its New York customers, forcing them to spend significant amounts of time speaking with agents who refused to take 'no' for an answer." The ruling sets a precedent for companies to prioritize transparency and ease of cancellation in their subscription processes.

SiriusXM has not commented on the ruling, but Reuters reports that the company plans to appeal the decision. As the company navigates this legal challenge, it remains to be seen how the ruling will impact its business practices and customer relationships in the long term.

The implications of this ruling extend beyond SiriusXM, as it highlights the importance of companies prioritizing customer experience and transparency in their subscription processes. As the FTC's "click to cancel" rule takes effect, companies will need to reexamine their cancellation processes to ensure compliance and avoid similar legal challenges.