A Los Angeles decide permitted an settlement Friday during which ticket reseller StubHub can pay a $295,000 effective and supply $20 million in client restitution to resolve claims it didn’t promptly pay refunds to California shoppers for canceled occasions in the course of the COVID-19 pandemic.
On the onset of the pandemic, StubHub didn’t honor its marketed coverage of offering full money refunds for canceled occasions and as a substitute issued shoppers StubHub credit score for future occasions, in keeping with California Legal professional Common Rob Bonta.
Following an investigation by the California Division of Justice, StubHub reversed its choice in Might 2021 and commenced offering money refunds to California shoppers. The settlement consists of sturdy injunctive phrases for future StubHub ticket gross sales, together with the penalty and restitution for greater than 45,000 California shoppers, the AG stated.
“By failing to subject full money refunds for canceled occasions in the course of the pandemic, StubHub not solely violated its marketed coverage but in addition violated the belief of its shoppers,” Bonta stated in a press release. “My workplace proudly works to maintain California shoppers protected from false or deceptive enterprise practices.”
StubHub operates one of many largest on-line ticket reselling marketplaces, the place patrons buy tickets to live shows, sports activities and different occasions. The New York-based firm had lengthy marketed that customers would obtain full refunds for tickets bought on its web site or app if the occasion had been later canceled.
StubHub made this “FanProtect Assure” a central a part of its advertising and marketing efforts. However in late March 2020, as mass occasions had been canceled in response to COVID-19, StubHub introduced a coverage change during which shoppers would as a substitute obtain 120% credit score for future StubHub purchases, quite than a full refund for canceled occasions. The brand new coverage was utilized to new ticket purchases and to shoppers who had already bought tickets based mostly on the prior assure.
The grievance, filed in Los Angeles Superior Courtroom, alleges StubHub violated California’s Unfair Competitors Legislation and the False Promoting Legislation by deceptive ticket patrons who relied on the marketed refund coverage when buying tickets earlier than March 2020.
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