SXSW BATTLES CLASS ACTION LAWSUIT OVER NO-REFUND POLICY

SXSW is facing a class action lawsuit from two prospective attendees over the Austin, Texas festival over its strict no-refund policy. SXSW announced its cancellation in early March and informed ticket holders that they would not be issuing refunds and instead offer registration for its 2021, 2022, or 2023 events. In addition, they offered patrons a 50% discount on their ticket for these events.

Disagreeing with this policy, the two plaintiffs Maria Bromley and Kleber Pauta filed the lawsuit claiming, “breach of contract and unjust enrichment.” Even though the festival is offering a discount for upcoming years, the tandem claims that SXSW, “cannot be certain that future festivals will occur.” This assumption is backed by SXSW organizers stating they were forced to lay off tons employees foreshadowing doubt of its 2021 presence.

In a statement given to Billboard, a SXSW representative expanded on the current situation. “Due to the unique nature of SXSW’s business, where we are reliant on one annual event, we incurred extensive amounts of non-recoupable costs well in advance of March. These expenditures, and the loss of expected revenue, have resulted in a situation where we do not have the money to issue refunds. SXSW, like many small businesses across the country, is in a dire financial situation requiring that we rely on our contracts, which have a clearly stated no refunds policy. Though we wish we were able to do more, we are doing our best to reconcile the situation and offered a deferral package option to purchasers of 2020 registrations.”

As of now, there has been no response from SXSW on the class action lawsuit.