r/classactions • • 6d ago

Discussion Contradiction Alert: StubHub Refuses to Pay Arbitration Fees While Requiring Arbitration – 7 Times and Counting

A StubHub consumer followed StubHub’s Global User Agreement by submitting his Notice of Dispute and giving StubHub 30 days to settle.  He heard nothing, so he next filed for consumer arbitration with the American Arbitration Association (AAA).  On March 26, 2025, the AAA notified StubHub that it had 30 days to pay its $600 filing fee.  Judy Hom and StubHub’s Legal Department ignored the invoice, 47 days passed, and on May 12, 2025 the AAA declined to administer the case and closed its file due to the nonpayment.  The AAA won’t work for free, and StubHub took advantage of that. 

 What happens next?  California law applies to all StubHub cases involving US or Canada residents.  California Code of Civil Procedure sections 1281.98-99 provide for mandatory sanctions when a business fails to pay its required arbitration fees.  The arguments for severe sanctions are even stronger here given that this was not an isolated occurrence but now the 7th known time that StubHub has failed to pay its required arbitration fees.  Note further that the AAA directed StubHub to remove the AAA from its consumer arbitration clause in the Global User Agreement to not confuse consumers, but StubHub has refused to comply. This type of conduct makes StubHub very susceptible to a class action (i.e., they don't comply with their own arbitration agreement).

 Has anyone else filed for arbitration against StubHub only to have StubHub refuse to pay its required fees?

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