the penalty is quite steep. If your event is in the US it is listed below.
For tickets to events located in the US or CANADA (unless otherwise specifically noted)
If you dropped your sale, StubHub will charge your payment method an amount equal to the greater of (i) 100% of the price of the ticket(s) sold or (ii) the full amount incurred by StubHub to remedy the dropped sale. In addition, you may be subject to other consequences as specified in the User Agreement at Clause 19, including account suspension.
If we receive a report that tickets you sold on StubHub were not valid for entry, we'll investigate to try to determine what caused the issue, and, if necessary, we'll reach out to you to request documentation.
In this situation, except in cases where the venue or organizer/primary ticketer is responsible for the invalid ticket (as determined by our investigation), StubHub will charge your payment method an amount equal to the greater of (i) 100% of the price of the ticket(s) sold or (ii) the full amount incurred by StubHub to remedy the issue for the buyer (the “Invalid Ticket Charge”).
If you fail to respond to this email and or to take any other actions required by StubHub to investigate the invalid ticket claim, you may be charged an amount equal to 20% of the cost of the original tickets, in addition to the Invalid Ticket Charge described in the paragraph above. A response constitutes an acknowledgment of our request and a bona fide effort to investigate the claim and obtain documentation. However, failing to respond, and not being able to provide documentation are not the same. We understand that every team and venue is different, and there may be cases where you cannot obtain documentation to assist in the investigation. In these cases, we'll work with you and use your history with us, specifically your invalid ticket claim rate, to determine the resolution. You can view your invalid ticket claim rate in the Seller Data Portal any time.