Five States And D.C. Target Sirius XM Over Consumer Complaints

Ohio AG Richard Cordray

SIRIUS XM RADIO is the target of a joint investigation from legal officials in several states after complaints by consumers about the satellite radio company's billing practices and account management. OHIO Attorney General RICHARD CORDRAY will lead the investigation, and has been joined by ARIZONA, CONNECTICUT, TENNESSEE and VERMONT, as well as the DISTRICT OF COLUMBIA.

"Officials are examining a range of allegations surrounding SIRIUS XM's policies on billing, customer solicitation and subscription cancellations and renewals," reports REUTERS. "The company disclosed the probe in a regulatory filing on WEDNESDAY. SIRIUS XM's "aggressive push to find new customers and retain existing ones has come under fire in some quarters. The BETTER BUSINESS BUREAU said 3,462 complaints had been filed against SIRIUS XM in the past 36 months and that half of them involve billing or collection issues."

Last week (NET NEWS 10/8), MISSOURI Attorney General CHRIS KOSTER won his case against SIRIUS XM radio, in which he charged the satcaster was calling consumers who were on the state's Do No Call list. The court sided with KOSTER, who has also filed a lawsuit alleging violations of the MISSOURI Merchandising Practices Act and the Telemarketing No-Call List Act. KOSTER said harassing telephone solicitation calls were made to consumers soliciting satellite radio subscriptions.

In a statement, SIRIUS wrote it "was cooperating with the investigations and that it believed its 'consumer-related practices comply with all applicable federal and state laws and regulations.'"

Satcaster Releases Subscriber Update

SIRIUS XM is close to passing 20 million subscribers. The company said it will have 20.1 million subscribers by the end of 2010 by adding 1.3 million new subscribers this year.

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