Earlier this week, StubHub announced a change in its ticket policies during the COVID-19 pandemic and informed customers that cancelled events are now eligible to receive a voucher, rather than a refund. Following backlash from customers, the ticketing company responded in a statement this week.
On Friday, news broke that the full-refund option would no longer be available for StubHub ticketholders. Instead, customers will receive 120 percent of the price they paid for their tickets in the form of a voucher. In a statement, StubHub said that over the past few weeks, over 28,000 events have been cancelled, postponed, or rescheduled, with 23,000 in the U.S. alone, noting that the company is willing “to go above and beyond for our customers.”
“As a marketplace, we act as an intermediary for buyers and sellers,” StubHub said. “In normal times, we’ve made the decision to refund buyers before collecting money from the seller to offer buyers more convenience. And under normal circumstances, this works well, even with StubHub taking the risk of timing delays and some losses when we are unable to collect from the seller.
“With the coronavirus impacting 28,000 events and the associated magnitude of challenge in recouping monies owed by sellers over the coming months, it is currently impossible for us to offer immediate cash refunds for all buyers.”
The secondary site went on to note that as soon as cancellations ramped up a few weeks ago, they were the first in the industry to offer a coupon worth 120% of the ticket valule, which will be a default option in the Canada and U.S. Fans outside of North America are defaulted to a refund.
“Due to the exceptional circumstances the music and sports industries are currently facing, some refunds may take a little longer than normal to process,” StubHub continued. “We greatly appreciate our community’s patience and understanding during this extraordinary time.”
Across social media, customers, brokers, and industry insiders expressed their frustration with the policy change.
That’s interesting right after covid first happened this was the email I got saying don’t worry I would get a full refund. I feel a big lawsuit brewing #stubhub pic.twitter.com/fa3gFUDx2d
— Jared Rangel (@Jaredrangel) March 29, 2020
Back on the 12th of March, @StubHub had said they would give the option to refund money for events canceled. Now they are saying they will give us a coupon for events canceled. To not refund money in a time when money is so tight is despicable & taking advantage of the situation pic.twitter.com/tRhJiJdRKS
— omnipotent ondansetron (@PA_Sertraline) March 27, 2020
I will be looking to join the class action lawsuit that will be coming if I dont get a refund. Tickets havent even been issued yet soo…where is my $$
— Kelly Kay (@nygatoralumni) March 31, 2020
You can’t change your TOS after purchase. Contracts are contracts. Honor yours.
— M D (@MelADavis) March 31, 2020
Seems to me that the terms that were in place when the tickets were purchased are the terms you MUST abide by. I’m sensing a nice class action lawsuit coming your way. You don’t get to change the rules to suit you after the fact.
— Steve Brown #TheTwoSteves (@therealdesert) April 1, 2020
I can’t wait until the lawyers sue you into oblivion in a class action lawsuit for your unethical and dishonest behavior. Refund people’s money. They bought tickets with promise of money back if the event does not occur.
— W79 (@Waa1207) March 31, 2020
See the company’s full statement below:
“StubHub is a global marketplace and our policies vary by region, in line with local guidance. In the last few weeks, 28,000+ events have been cancelled, postponed or rescheduled – 23,000 in the US alone. Given the unprecedented impact the coronavirus has had on the live events industry, we have adapted our policies in the US and Canada while continuing to go above and beyond for our customers.
“As a marketplace, we act as an intermediary for buyers and sellers. In normal times, we’ve made the decision to refund buyers before collecting money from the seller to offer buyers more convenience. And under normal circumstances, this works well, even with StubHub taking the risk of timing delays and some losses when we are unable to collect from the seller. With the coronavirus impacting 28,000+ events and the associated magnitude of challenge in recouping monies owed by sellers over the coming months, it is currently impossible for us to offer immediate cash refunds to all buyers.
“When the volume of cancellations accelerated a few weeks ago, we were the first in our industry to offer a coupon worth 120% of the ticket value. This will now be our default option in Canada and in the US. Outside of the US and Canada, fans are defaulted to a refund. Due to the exceptional circumstances the music and sport industries are currently facing, some refunds may take a little longer than normal to process. We greatly appreciate our community’s patience and understanding during this extraordinary time.”