Ontario has levied a potential first fine against a ticket resale platform under the province’s anti-scalping legislation as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
According to the province’s consumer awareness website, SeatGeek Canada received a $25,000 fine in late August, indicating it might be the first to face financial penalties under the ticket resale law enacted in April. The fine breakdown includes a $10,000 penalty for allegedly selling a ticket above face value, $5,000 for failing to disclose the original ticket price, and an additional $10,000 for allegedly facilitating a transaction without proof 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 linked to the fines or whether more fines would be issued.
“All ticket sellers in Ontario must adhere to the legislation that prohibits ticket resale above face value,” said Tingarov. “Violators could face fines of up to $250,000 and public disclosure.”
SeatGeek’s Vice President of Government Affairs, Joe Freeman, did not indicate whether the company intends to pay the fines or contest them. While SeatGeek has advised third-party sellers about the law, Freeman mentioned the company is seeking guidance from the province on compliance procedures.
Freeman highlighted the challenge of verifying the original ticket value, particularly for sellers like season ticket holders who may lack access to the initial face value. He emphasized that independent platforms such as SeatGeek face limitations in confirming or verifying purchase prices.
StubHub Canada made similar arguments regarding listings for Toronto International Film Festival screenings on its platform. Tickets for various events were listed at prices exceeding their reported face value, reflecting discrepancies in pricing.
Fans who participated in member sales reported premium screening tickets being listed well above the initial prices. TIFF previously offered curated ticket packages for multiple premieres at a set price, further complicating the pricing landscape.
StubHub explained that the inability to ascertain original ticket prices, especially for bundled packages or season tickets, contributes to listings above face value. The company emphasized the need for data from the original ticketing platform to ensure compliance with the law.
Issues related to verifying ticket prices remain unresolved, according to StubHub, which expressed willingness to collaborate with the government to address these concerns.
Vivid Seats encountered similar pricing discrepancies with TIFF listings, prompting the company to engage in active discussions with Ontario officials to align with the new ticket resale regulations.
In late April and early May, the province notified 27 ticket resale platforms, including StubHub and Vivid Seats, of impending compliance inspections. The warning letter cautioned of potential enforcement measures for non-cooperation.
Following the inspections, StubHub was added to the consumer beware list for alleged non-compliance, while Vivid Seats reported progress in addressing identified compliance gaps.
The ongoing dialogue between Vivid Seats and Ontario authorities aims to ensure full compliance with the legislation and operational requirements.