StubHub sued for illegal reselling tickets to Patriots games

StubHub, an online ticket reseller in the US has been denied protection from liability for its users' actions. American Football team, the New England Patriots, sued StubHub for its brokering of the buying and selling of tickets to Patriots games, as the team had banned the resale of tickets elsewhere but its own online exchange. 

When StubHub argued that it was not liable of its users' buying and selling, and tried to prove its words using Section 230 of the US Communications Decency Act (CDA), the Superior Court of Massachusetts disagreed, explaining "There is evidence in the record that StubHub materially contributed to the illegal 'ticket scalping' of its sellers." The Court went on saying that "In effect, the same evidence of knowing participation in illegal 'ticket scalping' that is sufficient, if proven, to establish improper means is also sufficient to place StubHub outside the immunity provided by the CDA."

Moreover, the Court stated that the Patriots would prove, StubHub induced a breach of contract “if they can show that StubHub intentionally induced or encouraged others to violate [the anti-touting laws], or profited from such violations while declining to stop or limit it.”

Section 230 of the US Communications Decency Act (CDA) provides protection from prosecution for internet publishers for in relation to the actions of other people on their online services.