Golden State Today

California Attorney General Rob Bonta announced today the resolution of an investigation into ticket reseller StubHub, Inc. for failing to provide timely refunds to California consumers for canceled events during the COVID-19 pandemic. Initially, StubHub did not honor its advertised policy of offering full cash refunds for canceled events and instead issued credits for future events. Following an investigation by the California Department of Justice, StubHub reversed this decision in May 2021 and began issuing cash refunds.

The settlement, approved in Los Angeles Superior Court, includes injunctive terms for future ticket sales by StubHub, a penalty of $295,000, and formalizes $20 million in cash refunds provided to over 45,000 California consumers.

“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 operates one of the largest online ticket reselling marketplaces and had long advertised that consumers would receive full refunds if events were canceled. This “FanProtect Guarantee” was central to its marketing efforts. However, in late March 2020, as mass events were canceled due to COVID-19, StubHub changed its policy to offer 120% credit for future purchases instead of full refunds.

The complaint alleges that StubHub violated California’s Unfair Competition Law (UCL) and False Advertising Law by misleading ticket buyers who relied on the advertised refund policy before March 2020.

In addition to consumer restitution and penalties under UCL, StubHub must comply with significant injunctive terms requiring adherence to consumer protection laws and prohibiting misrepresentations regarding refund policies unless modified with informed consumer consent.

California law mandates several obligations on ticket sellers concerning canceled or rescheduled events. As of January 1, 2022, ticket sellers must provide a full refund within 30 days of cancellation. For postponed or rescheduled events at the same time and place, a full refund must be provided upon request within 30 days.

Attorney General Bonta remains committed to addressing unlawful and deceptive business practices affecting consumers.

In July, Attorney General Bonta issued information following Senate Bill 478 (SB 478), effective July 1, 2024. SB 478 prohibits businesses from advertising prices excluding required fees or charges except certain government taxes and shipping costs.

In May, Attorney General Bonta announced a $10.25 million settlement with major U.S wireless carriers after investigating misleading advertising practices.

In April, settlements included $23 million with Service Corporation International for false advertising related to pre-need cremation packages.

Additionally in April, Attorney General Bonta supported a Consumer Financial Protection Bureau rule proposal aimed at closing a regulatory loophole allowing banks to charge overdraft fees without adequate disclosure.

A copy of the complaint and stipulated judgment can be found here.