StubHub is an “online marketplace for the resale and
purchase of tickets to sporting events, concerts, theater shows, and other live
entertainment events.” Porras bought two
tickets to a game between the San Francisco 49ers and the Pittsburgh Steelers through
StubHub's website, paying $594.95. She also spent $442.80 for two round-trip
plane tickets from Los Angeles to San Francisco. She was initially granted entrance, but was
removed by security halfway through the game and told her tickets were
invalid. She complained to StubHub and
received a $594.95 refund.
She brought the usual California claims, alleging that
StubHub “makes numerous misrepresentations and ‘guarantees' on its website that
a ticket purchased by a buyer will be ‘authentic,’ and ‘valid for entry,’ when,
in fact, [StubHub] delivers tickets that are not authentic or valid” and that
StubHub’s “FanProtect Guarantee,” misleadingly implies that all tickets
purchased on StubHub will be valid for entry.
The court first held that there was no violation of
California’s ticket seller statute because StubHub wasn’t a ticket seller; it
merely brought buyers and sellers together.
Turning to the UCL, FAL, CLRA, fraud, and breach of contract
claims, the court first rejected StubHub’s standing argument. Though Porras received a refund of the ticket
price and fees, she was injured by shelling out for plane tickets. However, StubHub’s conduct was not unlawful,
unfair, or misleading. StubHub clearly
disclosed that, if the buyer encountered any problems at the venue, she should
call StubHub, which would try to find comparable replacement tickets, and if it
couldn’t it would issue a full refund. “An
ordinary consumer reading the terms of StubHub's FanProtect Guarantee would
recognize such guarantee would not exist unless there was a possibility that
the tickets purchased might not be valid for entry.” The site’s use of the terms “guarantee,”
“100% confidence,” “authentic,” and “valid” wasn’t misleading, because the guarantee
made clear what the promise was: an attempt to find replacement tickets and, if
that failed, a refund.
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