A Los Angeles judge approved an agreement Friday in which ticket reseller StubHub will pay a $295,000 fine and provide $20 million in consumer restitution to resolve claims it failed to promptly pay refunds to California consumers for canceled events during the COVID-19 pandemic.
At the onset of the pandemic, StubHub failed to honor its advertised policy of providing full cash refunds for canceled events and instead issued consumers StubHub credit for future events, according to California Attorney General Rob Bonta.
Following an investigation by the California Department of Justice, StubHub reversed its decision in May 2021 and began providing cash refunds to California consumers. The settlement includes strong injunctive terms for future StubHub ticket sales, along with the penalty and restitution for more than 45,000 California consumers, the AG said.
“By failing to issue full cash refunds for canceled events during the pandemic, StubHub not only violated its advertised policy but also violated the trust of its consumers,” Bonta said in a statement. “My office proudly works to keep California consumers safe from false or misleading business practices.”
StubHub operates one of the largest online ticket reselling marketplaces, where buyers purchase tickets to concerts, sports and other events. The New York-based company had long advertised that consumers would receive full refunds for tickets purchased on its website or app if the event were later canceled.
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StubHub made this “FanProtect Guarantee” a central part of its marketing efforts. But in late March 2020, as mass events were canceled in response to COVID-19, StubHub announced a policy change in which consumers would instead receive 120% credit for future StubHub purchases, rather than a full refund for canceled events. The new policy was applied to new ticket purchases and to consumers who had already purchased tickets based on the prior guarantee.
The complaint, filed in Los Angeles Superior Court, alleges StubHub violated California’s Unfair Competition Law and the False Advertising Law by misleading ticket buyers who relied on the advertised refund policy when purchasing tickets before March 2020.
