California is making waves in consumer protection with a landmark settlement and groundbreaking legislation that promise to transform how businesses handle refunds and advertise prices. CA Attorney General Rob Bonta’s recent settlement with StubHub and the implementation of Senate Bill 478 are reshaping the marketplace, ensuring greater transparency and fairness for consumers.

StubHub Settlement and Its Impact on Consumers

StubHub, one of the largest online ticket resellers, faced scrutiny after failing to honor its refund policy during the COVID-19 pandemic. The company initially replaced promised cash refunds with credits for future events, leaving thousands of customers in limbo.

After an investigation by the California Department of Justice, StubHub reversed its decision in 2021 and began issuing cash refunds. The settlement announced in August 2024 culminates this investigation, delivering over $20 million in consumer restitution to more than 45,000 Californians.

As California Attorney General Bonta emphasized in his press release,

“By failing to issue full cash refunds for canceled events during the pandemic, StubHub not only violated its advertised policy but also violated the trust of its consumers.”

The settlement ensures that StubHub abides by strict guidelines moving forward, including clear refund policies that comply with California’s Unfair Competition Law. This resolution underscores the state’s commitment to holding companies accountable for misleading practices.

Senate Bill 478 – A New Era of Transparent Pricing

Building on this momentum, Senate Bill 478 introduces sweeping changes to how businesses advertise prices. Effective July 2024, SB 478 explicitly bans "drip pricing," a tactic where additional fees are revealed only at checkout, leading to unexpected costs for consumers.

According to SB 478, “Advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges” is unlawful unless those fees are government-imposed. This legislation impacts ticket sellers, car rental companies, and online marketplaces, ensuring the price you see is the price you pay.

The bill is part of a broader effort to enhance consumer trust and align pricing practices with consumer expectations. It cements California’s leadership in advocating for honest advertising and fairness in commerce.

What This Means for Everyday Consumers

For Californians, these developments mean a smoother and more transparent purchasing experience. Whether buying tickets to a concert, renting a car, or booking a hotel room, consumers will no longer need to sift through fine print or brace for hidden fees at checkout.

If you're a concertgoer or sports fan, understanding your rights under these new rules is essential. Refunds must now be issued promptly for canceled events, and advertised ticket prices must include all mandatory charges. By being vigilant and reporting violations, consumers can actively support enforcement efforts.

Tips for navigating this new landscape include:

• Verifying refund policies before making purchases.
• Keeping receipts and records for transactions involving mandatory fees.
• Reporting non-compliant businesses to California’s Department of Justice.

Looking Forward

While these changes represent a significant step forward, enforcement remains a challenge. Regulators must ensure that businesses comply with the law, while consumers need to stay informed about their rights.

California’s reforms may also inspire similar legislation in other states, creating a ripple effect across the country. As transparency becomes the norm, businesses that prioritize honest practices will gain a competitive edge, fostering trust among consumers.

Conclusion

The StubHub settlement and SB 478 exemplify California’s dedication to safeguarding consumer rights. Together, they promote transparency, fairness, and accountability in business practices.

By staying informed and proactive, Californians can benefit from these changes and help create a marketplace that works for everyone. If you encounter violations, remember that reporting them not only protects your rights but strengthens the system for others.