SiriusXM Cannot Force Vehicle Owners To Arbitrate

SiriusXM Holdings Inc cannot force owners of vehicles sold with trial subscriptions to its satellite radio service to arbitrate disputes, a federal appeals court decided on Monday, in a case involving alleged unsolicited sales calls.

Reuters reports a three-judge panel of the 9th U.S. Circuit Court of Appeals in Pasadena, California reversed a lower court rulling and said owners may try to pursue their claims as a group rather than in individual arbitrations, which can be costly and time-consuming.

The panel found no showing that plaintiff Erik Knutson, a San Diego-area real estate broker, agreed to arbitrate disputes with Sirius when he bought his Toyota Tacoma truck in Nov. 2011.

Knutson accused New York-based Sirius of violating the Telephone Consumer Protection Act by making three unauthorized calls to his cell phone in the 90-day trial subscription period after he bought his truck.

Sirius countered that Knutson was bound by a "customer agreement" containing the arbitration clause, and included in a "Welcome Kit" sent a month after he bought his truck. Knutson said he never read or assented to the customer agreement.

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