Sirius XM Class Action Alleges Deceptive Ad Pricing Scheme

A New Jersey man claims in a Sirius class action lawsuit that he and others were duped by a “bait and switch” scheme, locking customers into high priced satellite radio services.

Lead plaintiff Jeffrey Parrella says he received a flyer in the mail in 2017 offering him three years of Sirius XM radio service for $99; however, when he called about the ad, a customer service rep told him that the only deal they could give him was a year of satellite radio service for $60.

Sirius XM Holdings, the owner of Sirius radio, offers satellite radio service. Satellite radio allows customers to listen to stations virtually everywhere – no more fading in and out of local radio station ranges on long road trips. The complaint states that Sirius offers this service mainly through subscriptions, using both regular and discounted plans. Discounts, alleges the plaintiff, are usually offered for longer contracts.

The Sirius class action lawsuit claims that Parrella had previously cancelled his Sirius service. In addition to offering service at the rate of $99 for three years, the satellite radio company also said it would waive the $15 activation fee and allow the plaintiff to cancel at any time. The company called the offer the “Select service package.”

The mailed offer instructed consumers to either go online or call Sirius customer service representatives by Dec. 31, 2017 to accept the offer.

According to the Sirius class action lawsuit, the plaintiff went online numerous times to accept the Select service package, but could not. Parrella says that he then called the number, but despite telling the customer service representative that he had been mailed the offer, he was told the offer was not available.

The Sirius customer service representative reportedly informed Parrella his only option was to pay $60 a year for service.

Ultimately, according to the class action lawsuit, Parrella agreed to reactivate his service at $60 per year, but he alleges he was assured by the customer service representative that his mailed offer for the Select service package would be “escalated” to a different department and ultimately honored by Sirius XM Holdings. Despite these assurances, the plaintiff contends that he was charged $60 plus taxes and fees for reactivating his Sirius service.

According to the Sirius class action lawsuit, the alleged bait and switch technique violates New Jersey consumer protection laws.

The plaintiff seeks to represent other New Jersey consumers who were offered the Select service package, responded to the offer, and were duped into paying for a more expensive service.

The Sirius class action lawsuit is seeking a court order requiring the satellite radio company to notify customers who were duped by the bait and switch scheme along with damages.

The lead plaintiff is represented by Bharati O. Sharma of the Wolf Law Firm LLC.

The Sirius XM Deceptive Pricing Scheme Class Action Lawsuit is Jeffrey Parrella, et al. v. Sirius XM Holdings Inc., et. al., Case No. 3:19-cv-15778, in the U.S. District Court for the District of New Jersey.

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