The Federal Trade Commission is investigating XM Satellite Radio’s marketing practices to see if it has violated the Can-Spam Act and/or the Telemarketing Sales Rule, the satellite radio company said in an official filing last week.
“[O]n April 25, 2006, we received a letter from the Federal Trade Commission stating that they are conducting an inquiry into whether our activities are in compliance with various acts, including the FTC Act, the Telemarketing Sales Rule, the Truth in Lending Act and the Can-Spam Act,” the company said in a filing with the Securities and Exchange Commission. The company said the FTC requested information about a variety of its marketing activities, including free trial periods, rebates, telemarketing activities, billing and customer complaints.
“We are conducting an internal review of these matters, and anticipate responding to the letter shortly and cooperating fully with this investigation,” the company said.
XM said it is too early in the process to know if the investigation will affect its business.
