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StubHub targeted by new Covid-19 refund lawsuit

Following similar action in the US, a Canadian law firm has filed a class-action lawsuit against StubHub, arguing that fans are entitled to refunds for cancelled shows

By IQ on 22 May 2020

StubHub targeted by new lawsuit over Covid-19 refunds

StubHub CEO Sukhinder Singh Cassidy


Secondary ticketing giant StubHub is facing legal action in Canada for its decision to offer credit vouchers, instead of cash refunds, for events that have been cancelled due to the ongoing coronavirus pandemic.

The class action lawsuit, filed by the firm Koskie Minsky, follows a similar case initiated by a consumer in Wisconsin, USA, in April.

Minsky is suing the company on behalf of all Canadians that have not been offered a refund for tickets bought via StubHub for cancelled events before 25 March 2020.

The law firm alleges that customers are entitled to “prompt cash refunds”, in the original form of payment, under their terms of contract 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, says in a release. “This is obviously wrong and hurts everyday Canadians whose household budgets are stretched right now.”

“This is obviously wrong and hurts everyday Canadians whose household budgets are stretched right now”

Earlier this year, StubHub announced a change to its policy amid the slew of postponements and cancellations due to coronavirus — revealing that customers holding tickets to cancelled events are eligible to receive a voucher worth 120% of the original ticket price, but not offering cash refunds.

Previously, customers holding tickets to cancelled events had been eligible for a refund. However, the company stated that, due to the volume of events that had been postponed or rescheduled, “it is currently impossible for us to offer immediate cash to buyers.”

The question of refunds has been hotly debated, as the coronavirus crisis takes its financial toll on the live sector. Ticket vouchers, as well as extended refund grace periods, have formed part of the lobbying efforts of industry associations around the world.

 


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