In the first instance shown below, 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 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. In the second very recent instance, StubHub still had not paid the required AAA fees 41 days after receiving the AAA's $600 invoice. Consequently, the AAA threw out the case on September 28, 2026. The AAA won’t work for free, and StubHub took advantage of that in both cases.
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 at least the 7th and 8th known times 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.
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