StubHub Pays $295K to Settle California COVID Refund Row

StubHub has agreed to pay a $295,000 penalty as part of a settlement with California Attorney General Rob Bonta over the company’s policy changes on refunds for tickets to events during the COVID-19 pandemic. The settlement, approved last week by Los Angeles Superior Court, also involved the company’s previously agreed-to repayment of nearly $20 million in cash refunds to more than 45,000 consumers in the state.

The ticket resale giant was sued by California and other states in the wake of its March 2020 policy shift as events across the globe were cancelled due to the pandemic. Rather than granting a full cash refund when events were cancelled, StubHub shifted its policy to offer consumers a 120% credit good towards a future purchase – a policy shift that also included tickets purchased prior to the policy change.

“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,” said Attorney General Bonta. “My office proudly works to keep California consumers safe from false or misleading business practices.”

StubHub was one of multiple companies to change policies in the wake of the sudden halt on operations brought by the pandemic and widespread bans on live events being held with fans in attendance. The cancellation (or indefinite postponement) of global events led to a cash crunch just months after viagogo bought the marketplace from prior corporate parent eBay in early 2020.

The company began offering cash refunds again to consumers by May 2021, and had previously settled litigation with other states including Arizona, Arkansas, Colorado, Indiana, Maryland, Minnesota, New Hampshire, Ohio, Virginia, Wisconsin, and the District of Columbia.

Further Reading | StubHub Settles Multi-State Lawsuit Over COVID Refund Policy Changes

“We are pleased to have reached a resolution with the California Attorney General regarding the difficult decision to adjust our refund policy for canceled events at the height of the COVID-19 pandemic,” StubHub’s Deputy General Counsel, John Lawrence says in a statement. “In 2021, as soon as circumstances allowed, StubHub ensured that consumers impacted by this adjustment were made whole, offering them the choice between retaining their 120% credit for canceled events or receiving a cash refund. We remain committed to upholding our FanProtect Guarantee and ensuring the best possible experience for our customers.”

In addition to the cash refunds and monetary penalty, StubHub also agreed to comply with “significant injunctive terms” that it will abide by California’s Unfair Competition Law and False Advertising Law, as well as a prohibition on making any misrepresentations regarding its refund policies or failing to honor its refund policies unless modified with the informed consent of the user.