StubHub has been hit with a class action lawsuit for refusing to refund fans for events that have been, or will be cancelled due to the ongoing coronavirus pandemic.
The suit was brought on by the firm Koskie Minsky, on behalf of all Canadian residents who purchased tickets via StubHub before March 25, 2020 for an event that has been cancelled or is cancelled prior to certification of this claim and did not receive a refund. Minsky is suing the company, alleging that customers are entitled to prompt cash refunds, in the original form of payment, under their terms of contracts with StubHub and under consumer protection laws.
“StubHub has reneged on its promise to refund Class Members’ money,” Kirk Baert, a partner at Koskie Minsky, said in a press release. “This is obviously wrong and hurts everyday Canadians whose household budgets are stretched right now.”
This isn’t the first lawsuit brought on the company regarding its refund policy; last month, a U.S. consumer from Wisconsin filed a class action lawsuit against StubHub. In the suit, consumer Matthew McMillen said that the company has no right to “retroactively” back out of its “longstanding ‘FanProtect’ guarentee…in response to apparent liabilities it would incure stemming from the Covid-19 pandemic.”
Earlier this year, StubHub announced a huge change to its policies amid the slew of postponements and cancellations due to coronavirus — revealing that customers holding tickets to cancelled events are eligible to receive a voucher, rather than a refund. Previously, customers holding tickets to cancelled events were eligible for a refund, however, now the only option is to receive an automatic credit, worth 120% of the original price.
The secondary ticketing company received harsh backlash from fans following the change in policy. In early April, StubHub issued a response, noting that over 28,000 events had been postponed or rescheduled. While the company would normally refund buyers before collecting money from the seller, the company said it would be unable to do that now.
“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 to buyers,” StubHub said at the time.