Minnesota, StubHub reach nearly $2M settlement over refund policy
StubHub has agreed to pay nearly $2 million to Minnesotans who were denied refunds after events they’d bought tickets for were canceled due to the COVID-19 pandemic.
Minnesota Attorney General Keith Ellison announced the settlement on Thursday.
As part of the agreement, StubHub will pay $1.87 million in refunds to 5,500 consumers who either live in Minnesota or bought tickets to events in the state. Nine other states and the District of Columbia were also part of the multistate resolution with the company.
Ellison’s office notes SubHub’s "FanProtect Guarantee," it offers full refunds for tickets if an event is canceled. However, when the pandemic hit in March 2020, the company stopped honoring its refund guarantee and instead told customers they’d get an account credit.
"Minnesotans should not lose money when a service they paid for was never provided," Ellison said. "The COVID-19 pandemic is not an excuse to withhold refunds. That’s why we fought to put money back in Minnesotans pockets. This settlement ensures that StubHub will honor its refund policies both now and in the future."
The settlement also includes an injunction requiring StubHub to honor its refund policies, not change its refund policies unless consumers consent to the changes, and promptly process refund requests, according to Ellison’s office.
Additionally, StubHub must pay a $309,150 civil penalty if it doesn’t provide refunds to all Minnesota customers or violates the other terms of the agreement.
Anyone who hasn’t been contacted by StubHub but believes they’re entitled to a refund can contact the company at 866-788-2482 or the Attorney General’s Office at 651-296-3353 or 800-657-3787.
StubHub issued the following statement on the settlement:
"Putting fans first has always been central to the StubHub business. Adjusting our refund policy for canceled events during the pandemic was a difficult decision, but a necessary one at the time. As soon as circumstances allowed, StubHub achieved its goal of providing impacted customers the choice to keep the 120% credit they were issued when their event was canceled or receive a cash refund.
"We appreciate the patience of our customers, partners and regulators as we worked toward providing that choice, and we appreciate the ongoing dialogue with the states as we worked to formalize the actions StubHub voluntarily took beginning in May 2021 through this multi-state agreement."