(KERO) — ABC News said StubHub has agreed to refund customers who purchased tickets to events canceled because of the pandemic.
When the virus forced the cancellation of concerts, sports and other events StubHub initially stopped honoring its refund guarantee, instead offering customers credits to be used for future events, according to ABC News.
On Wednesday, several state attorneys general announced a settlement with StubHub that forces the ticket reseller to reverse the policy and honor refunds for tickets purchased prior to March 25, 2020, said ABC News. The settlement also requires StubHub to be more conspicuous about its refund policies and honor those policies when events are cancelled.
There’s a monetary penalty that reaches into the millions of dollars that the company can avoid if it promptly pays the refunds owed to customers, said ABC News.
Instead of refunds, StubHub had tried to offer credits of 120% of ticket purchase prices for future events, said ABC News.
The multistate investigation began after several customer complaints and Stubhub’s “lack of responsiveness” to the inquiries, the attorneys general said.
The settlement involves StubHub customers in Arizona, Arkansas, Colorado, Indiana, Maryland, Minnesota, New Hampshire, Ohio, Virginia, Wisconsin, and the District of Columbia, according to ABC News.