Erik Knutson v. Sirius Xm Radio Inc.

Plaintiff Erik Knutson (“Knutson”) appeals the district court’s order dismissing his putative class action and granting Defendant Sirius XM Radio Inc.’s (“Sirius XM”) motion to compel arbitration pursuant to the Federal Arbitration Act (“FAA”). Knutson alleges that he did not consent to enter into a binding Customer Agreement with Sirius XM, and that the Customer Agreement as a whole, and the arbitration provision specifically, are unconscionable.

In November 20Í1, Knutson purchased a vehicle from Toyota that included a 90-day trial subscription to Sirius XM satellite radio. About a month after his trial subscription was activated, Knutson received a ‘Welcome Kit” from Sirius XM that contained a Customer Agreement. Knutson alleges that during his trial subscription, he received three unauthorized calls from Sirius XM on his cellphone. In response to these calls Knutson, in February 2012, brought a class action suit against Sirius XM alleging violations of the federal Telephone Consumer Protection Act. The district court found that both parties consented to enter into the Customer Agreement and that the arbitration clause was valid and enforceable under the FAA.

Knutson…