A New York judge has ruled that SiriusXM's 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 makes subscriptions difficult to cancel.

According to the ruling, Judge Lyle Frank found that SiriusXM broke the Restore Online Shoppers Confidence Act (ROSCA), which mandates companies to implement "simple mechanisms" to cancel a subscription. The company's current process involves customers calling an agent, who then keeps them on the phone for several minutes while pitching up to five retention offers. This deliberate attempt to delay cancellations and waste subscribers' time is deemed unlawful.

The investigation by the Office of the Attorney General found that SiriusXM's cancellation procedure is far from easy to use, unlike the initiation method. Judge Frank cited the "inevitable wait times" that come with talking to a live agent and the subscription offers they promote as evidence of the company's violation of ROSCA.

This ruling comes at a time when the Federal Trade Commission (FTC) is cracking down on hard-to-cancel subscriptions. The FTC's new "click to cancel" rule, set to take effect next year, requires companies to make canceling a subscription as easy as signing up. The rule aims to protect consumers from companies that make it difficult for them to cancel their subscriptions.

In response to the ruling, SiriusXM plans to appeal the decision and will also follow the FTC's incoming click-to-cancel rule. However, the company did not immediately respond to requests for comment. As a result of the ruling, SiriusXM must change its cancellation process, but only for customers located in New York.

The implications of this ruling are significant, as it sets a precedent for companies to prioritize consumer convenience and transparency in their cancellation processes. With the FTC's new rule on the horizon, companies will need to reexamine their subscription models and ensure that they comply with the law. The decision also highlights the importance of regulatory bodies in protecting consumers' rights and promoting fair business practices.

In conclusion, the ruling against SiriusXM serves as a warning to companies that prioritize profits over customer convenience. As the digital landscape continues to evolve, it is essential for companies to prioritize transparency, simplicity, and consumer-centricity in their business practices. The future of subscription-based services depends on it.