Sirius XM Radio Inc. has agreed to pay $35 million to settle proposed class actions alleging the company illegally used predictive dialers for telemarketing calls. It was alleged that the New York City-based satellite systems provider violated the Telephone Consumer Protection Act (TCPA) by using an autodialing system to make sales calls to Sirius XM trial users to induce them into subscribing.
Under the proposed settlement, which extends to three related cases around the country, Sirius XM will pay $35 million into a cash common fund from which proposed class members can either draw a payment or opt to receive three months of Sirius XM Select service at no charge. The company also has agreed to enter into agreements with certain telemarketing call center vendors to make modifications to their “system architecture,” according to the status report.
The TCPA regulates the use of autodialers and prohibits the use of artificial or prerecorded voices to make nonemergency calls to cellphone numbers without the recipient’s prior consent.
The entire proposed class consists of all people in the U.S. who were trial recipients of Sirius XM radio service and who did not become paying subscribers, but received one or more calls on their cellphones from vendor TeleServices Direct made by or on behalf of Sirius dating back four years from the 2013 complaint.