Ontario has imposed a potential initial penalty against a ticket resale platform under the province’s anti-scalping legislation, which is being tested as resellers seek to offload tickets for upcoming events such as the Toronto International Film Festival.
According to the province’s consumer advisory website, SeatGeek Canada was fined $25,000 in late August, with no other fines listed for ticket vendors, indicating that SeatGeek might be the first to face financial consequences under the ticket resale law that came into effect in April.
The details of the penalty reveal that the company was fined $10,000 for allegedly selling a ticket above its face value, $5,000 for failing to disclose the original ticket purchase price, and an additional $10,000 for purportedly facilitating a transaction without evidence of the original price.
Cristian Buzo Tingarov, a spokesperson for Ontario’s Minister of Public and Business Service Delivery Stephen Crawford, declined to provide details on the event associated with the fines or potential future penalties.
“All ticket vendors in Ontario are required to adhere to the legislation prohibiting ticket resale above face value,” Tingarov stated via email. “Violators of these regulations could face fines of up to $250,000 and public disclosure.”
Regarding the payment of fines, SeatGeek’s Vice President of Government Affairs Joe Freeman did not disclose whether the company intends to pay the fines or challenge them. While SeatGeek has notified third-party sellers on its platform about the law, Freeman mentioned that the company is seeking guidance from the province on compliance procedures.
Freeman highlighted the challenges faced by SeatGeek in confirming the original ticket value, particularly when sellers, including season ticket holders, lack access to this information. He emphasized that independent platforms like SeatGeek have limited means to ascertain or authenticate the purchase price from the primary seller.
Similarly, StubHub Canada echoed these sentiments when questioned about recent listings for Toronto International Film Festival (TIFF) screenings on its platform.
StubHub contended that the absence of pricing on certain tickets, such as those bought as part of a season package, and the ease with which receipts can be altered by resellers contribute to listings above face value. The company stressed the need for data from the original ticket purchase platform to validate prices and ensure compliance with the law.
StubHub emphasized unresolved issues related to the verification of a ticket’s original price and expressed its commitment to collaborating with the government to address these concerns.
In another development, some TIFF listings appearing above prices reported during member sales were also found on Vivid Seats. A spot at the premiere of the film “Fjord” was listed for $933 on the platform, and a ticket for the debut of the soccer star biopic “Rapinoe” was priced at $483.
Vivid Seats spokesperson Julia Young refuted claims of non-compliance with legislation, stating that the company is actively engaging with Ontario officials to ensure adherence to the province’s ticket resale regulations.
In late April and early May, the province notified 27 ticket resale websites, including StubHub and Vivid Seats, of impending inspections for compliance with the new law. The province warned of follow-up inspections and enforcement measures if businesses fail to cooperate.
Following these notifications, StubHub was added to the province’s consumer advisory list for suspected non-compliance, although no information on fines has been provided. Vivid Seats indicated progress in addressing identified compliance issues and ongoing discussions with the province to meet obligations.
The province’s efforts to regulate ticket resale aim to ensure transparency and fairness for consumers and vendors in the ticketing industry.