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

California, StubHub reach $20 million settlement

California Attorney General Rob Bonta announced a settlement with ticket reseller StubHub Inc. has been reached over allegations the company failed to provide timely refunds for events canceled during the COVID-19 pandemic.

California Attorney General Rob Bonta announced Friday a settlement with ticket reseller StubHub Inc. over allegations the company failed to provide timely refunds for events canceled during the COVID-19 pandemic.

The legal settlement, approved by the Los Angeles Superior Court, includes over $20 million paid in consumer restitution, a $295,000 penalty, and injunctive terms for future ticket sales.

At the start of the pandemic, StubHub stopped honoring its policy of full cash refunds for canceled events, instead offering customers 120% credit towards future events. Following an investigation, the company reversed its decision in May 2021 and began providing cash refunds to California consumers, resolving the claims of over 45,000 consumers.

"StubHub not only violated its advertised policy but also violated the trust of its consumers," Bonta said. He encouraged the public to report any suspected false or misleading business practices at oag.ca.gov/report.

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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"We are pleased to have reached a resolution... offering them the choice between retaining their 120% credit for canceled events or receiving a cash refund," said John Lawrence, Deputy General Counsel for StubHub. The company emphasized its commitment to its 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.

The StubHub settlement brings California into agreement with other states that reached similar resolutions with the company over its pandemic refund practices.

FOX 11 reached out to StubHub for comment on the complaint, but has not received a response.