Class Action Accuses Phillies and StubHub of Unfair Ticket Pricing Practices

By on September 27, 2011

A class action complaint has been filed against StubHub, Inc., an eBay company (NASDAQ: EBAY) and the Phillies, L.P. in the United States District Court for the Northern District of California, on behalf of purchasers of tickets to a Philadelphia Phillies game on from May 3, 2007 through such time that the alleged violations have ceased.  The lawsuit alleges that ticket purchasers were harmed by StubHub’s practice of not printing the established price (i.e., face value) and the maximum premium (i.e., their maximum price) on its reissued tickets.  According to the complaint filed by baseball fan Joseph Fabozzi, “[Fabozzi] would not have purchased such tickets, or would not have done so at the price he paid, had he known the established price when he purchased the tickets.”

In 2007, Major League Baseball (“MLB”) and StubHub entered into a five-year agreement that designates StubHub as the official online provider of secondary tickets for and grants StubHub club-endorsed status from each participating MLB team, including the Philadelphia Phillies.  The agreement between StubHub, the Phillies, and MLB grants StubHub consent to cancel originally issued tickets to Phillies’ games at Citizens Bank Park (“CBP”) and replace them with reissue tickets with a different bar code, omitting the established price and maximum premium from the face of the reissued tickets. 

The complaint alleges that StubHub, Inc., and the Phillies, L.P., violated Pennsylvania law 4 P.S. § 211 titled “Printing Prices on tickets,” which provides that “[t]he owner of every place of amusement shall, if a price be charged for admission thereto, cause to be plainly stamped or printed or written on the face of every ticket to be so used, the established price.”

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