StubHub Agrees To $2.5M FTC Settlement Over Refund Policy Violations
StubHub Agrees To $2.5M FTC Settlement Over Refund Policy Violations...
StubHub will pay $2.5 million to settle Federal Trade Commission (FTC) allegations that the ticket resale platform failed to provide refunds for canceled events during the pandemic. The settlement, announced Thursday, resolves claims that StubHub violated consumer protection laws by withholding refunds despite advertising "FanProtect Guarantee" policies.
The FTC accused StubHub of changing its refund policies in March 2020 without properly notifying customers. Thousands of consumers reportedly struggled to recover money for concerts, sports events, and other gatherings canceled due to COVID-19 restrictions. Many were instead offered vouchers valid for only one year.
"StubHub broke its promise to consumers by denying them refunds," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection. "Today's order provides money back to consumers and makes clear that companies must honor their refund promises."
The settlement requires StubHub to pay $2.5 million for consumer redress and prohibits future misrepresentations about refund policies. Affected customers who filed complaints with StubHub or the FTC between March 25, 2020, and November 17, 2020, may be eligible for payments.
This case highlights ongoing scrutiny of ticket industry practices as live events rebound post-pandemic. The FTC has recently increased enforcement actions against companies accused of exploiting COVID-19 disruptions. StubHub's settlement follows similar actions against airlines and other ticket vendors.
StubHub, now owned by Swiss digital marketplace Viagogo, stated it "cooperated fully" with the FTC investigation. The company noted it voluntarily updated its policies in 2021 to provide automatic cash refunds for canceled events.
Consumer advocates welcomed the settlement but cautioned that ticket buyers should carefully review refund terms before purchases. The FTC maintains a complaint database where consumers can report similar issues with event vendors.
The settlement comes as live event attendance approaches pre-pandemic levels, with 2026 projected to set new records for concert and sports ticket sales. Industry analysts suggest the resolution may prompt other platforms to review their refund policies ahead of peak summer sales periods.
