Stubhub, Inc. Agrees to Honor Its Refund Policies and Continue Paying Refunds to Consumers Whose Events Were Cancelled as a Result of the COVID-19 Pandemic
Maryland Attorney General Brian E. Frosh today announced a settlement reached by his Consumer Protection Division with California-based StubHub, Inc. concerning the company’s refusal to pay refunds to consumers for concerts, sports events, and other events that were cancelled as a result of the COVID-19 pandemic. Maryland led an investigation that included nine other states and the District of Columbia in a multistate resolution with the company.
StubHub operates one of the largest ticket reselling marketplaces in the country. Under its “FanProtect Guarantee,” StubHub offered consumers full refunds of the purchase price and fees they paid for tickets if their events were cancelled. In March 2020, however, following the mass-cancellation of entertainment events, StubHub stopped honoring its refund guarantee and instead told its customers that they would receive account credits equal to 120% of their purchases to be used for future events and denied their requests for refunds.
Following the commencement of the states’ coordinated investigations, in May 2021 StubHub reversed its decision and notified its customers that if they purchased tickets prior to March 25, 2020, and their events were cancelled, they would receive full refunds of the amounts they paid for their tickets to events unless they elected to retain their account credits. This included more than 8,500 consumers residing in Maryland or purchasing tickets for an event in Maryland, who had previously purchased tickets on StubHub’s marketplace under terms that included the FanProtect Guarantee.
Today’s settlement also includes an injunction that requires StubHub to (i) honor its refund policies; (ii) not change its refund policies for purchased tickets unless the purchasing consumer consents to the change; and (iii) promptly process refund requests it receives from consumers for the events at issue going forward. The agreement also provides for a $424,250 civil penalty, which StubHub can avoid paying provided that it pays the refunds owed to Maryland consumers and it does not violate the other terms of the agreement.
“Despite the unprecedented circumstances that led to mass cancellations of events last year, StubHub had a responsibility to abide by the terms of its own guarantee policy,” said Attorney General Frosh. “This settlement ensures that consumers will receive the refunds that they are entitled to.”
Consumers who have not been contacted by StubHub and believe they are entitled to a refund may either contact StubHub at 866-788-2482 or the Attorney General’s Office at 410-528-8662.
Joining Attorney General Frosh in today’s settlement were the attorneys general for Arizona, Arkansas, Colorado, the District of Columbia, Indiana, Minnesota, New Hampshire, Ohio, Virginia, and Wisconsin.