StubHub No Refunds for Canceled Events Class Action

StubHub, Inc. is a ticket resale company the offers a FanProtect Guarantee, “a trademarked promised that guaranteed consumers they would be protected against the risks of buying from a ticket reseller[,]” says the complaint for this class action. Nevertheless, the complaint claims that StubHub is refusing to refund money paid for tickets when the events are canceled due to restrictions related to the coronavirus.

The class for this action is all persons living in the US who bought tickets on the StubHub marketplace for events that were canceled on or after March 1, 2020 and who did not receive a full refund within ten days of the cancellation.

StubHub is an online platform that offers secondary ticket sales, acting as a go-between for people who want to resell their tickets to sporting events, concerts, and other live entertainment events and the people who want to buy them. Some tickets are sold, the complaint says, “at a substantial markup over face value[.]”

StubHub offers tickets from third-party resellers, listing their asking prices. When a consumer decides to buy a ticket, StubHub collects the ticket’s asking price plus service and delivery fees. It pays the asking price to the ticket seller, minus a commission, and keeps that plus the service and delivery fees. Then it delivers the ticket to the buyer.

StubHub calls itself the world’s largest ticket marketplace.

The complaint alleges that the FanProtect Guarantee is major reason for StubHub’s success: “This highly publicized form of buyers’ insurance was the primary reason StubHub was able to convert a dubious and largely underground market into more than $1 in annual revenue.” One StubHub commercial promises, “If they don’t play, you don’t pay.” “Yet now that the time has come to pay out on that buyers’ insurance,” the complaint says, “StubHub is in effect canceling the policy.”

Many concerts and other live events have been canceled due to Covid-19. Instead of paying refunds to customers for these canceled events, StubHub is offering customers coupons.

According to the complaint, “Worse yet, StubHub is proactively collecting money owed to customers and converting that money for its own use.”

How is it doing that? “When a consumer purchases tickets on StubHub, the bulk of the purchase price is paid to a third-party reseller. In the event of a cancellation, that money rightfully belongs to the ticket buyers. StubHub is charging third-party resellers’ credit cards for the money owed to its customers; but instead of honoring its guarantee and refunding this money to its customers, StubHub is keeping the money.”

The complaint alleges conversion and breach of contract, among other things.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

StubHub No Refunds for Canceled Events Complaint

May 1, 2020

StubHub, Inc. is a ticket resale company the offers a FanProtect Guarantee, “a trademarked promised that guaranteed consumers they would be protected against the risks of buying from a ticket reseller[,]” says the complaint for this class action. Nevertheless, the complaint claims that StubHub is refusing to refund money paid for tickets when the events are canceled due to restrictions related to the coronavirus.

StubHub No Refunds for Canceled Events Complaint

Case Event History

StubHub No Refunds for Canceled Events Complaint

May 1, 2020

StubHub, Inc. is a ticket resale company the offers a FanProtect Guarantee, “a trademarked promised that guaranteed consumers they would be protected against the risks of buying from a ticket reseller[,]” says the complaint for this class action. Nevertheless, the complaint claims that StubHub is refusing to refund money paid for tickets when the events are canceled due to restrictions related to the coronavirus.

StubHub No Refunds for Canceled Events Complaint
Tags: Entertainment, Event Tickets, Failure To Pay For Refund