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StubHub settles ticket refund complaint, pays out $20M to California consumers

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Updated  August 23, 2024 10:47am PDT
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KTVU FOX 2

California Attorney General Rob Bonta has filed a complaint and stipulated judgment concerning the investigation of ticket reseller StubHub, Inc., according to a press release from Bonta's office. 

StubHub is one of the most commonly used resellers when it comes to events and concert tickets, but the company was accused of failing to offer timely refunds to California consumers for events that were canceled throughout the COVID-19 pandemic. 

The California Department of Justice opened an investigation in 2021, which spurred StubHub to begin providing cash refunds to its California consumers. A settlement approved this week in Los Angeles Superior Court lays out clear expectations for future StubHub ticket sales. 

The reseller faced a penalty of $295,000 and ponied up $20 million to more than 45,000 California consumers. 

Dubbed its "FanProtect Guarantee", StubHub had advertised that consumers would receive full refunds for any tickets purchased on the app if the event was canceled after their purchase. However, when events were canceled in mass beginning in 2020, StubHub shifted its policy. 

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The company determined that consumers would receive 120% credit for future StubHub purchases rather than a true full refund. Bonta argued that StubHub applied its new policy expectations to all customers, even those who had previously purchased tickets under the "FanProtect Guarantee". 

Beginning in 2022, California law requires all ticket sellers to provide a full refund for any event that is canceled. The refunds are also expected to be dispersed within 30 days of the canceled event.  

"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. If you believe you are the victim of false or misleading advertising, please report it to oag.ca.gov/report."

StubHub shared the following statement with KTVU on the settlement:

"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. 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," wrote StubHub's Deputy General Counsel, John Lawrence.