Ontario has recently imposed what could potentially be its inaugural penalty against a ticket resale platform in accordance with the province’s anti-scalping legislation. The law is currently being put to the test as resellers endeavor to offload tickets for upcoming occasions like the Toronto International Film Festival.
According to the province’s consumer advisory portal, SeatGeek Canada was fined $25,000 in late August, marking the first instance of financial consequences for a ticket seller under the legislation enacted in April. The breakdown of the fine reveals that the company was penalized $10,000 for reportedly vending a ticket above its face value, $5,000 for failing to disclose the initial purchase price of a ticket, and an additional $10,000 for allegedly facilitating a transaction without providing evidence of the original price.
Cristian Buzo Tingarov, a spokesperson for Ontario’s Minister of Public and Business Service Delivery Stephen Crawford, refrained from responding to inquiries on the specific event linked to the fines and whether more penalties will be issued by the province.
“All ticket vendors in Ontario are required to adhere to the regulations prohibiting the resale of tickets at prices exceeding face value,” Tingarov stated. “Violators of these rules may face fines up to $250,000 and public disclosure.”
Regarding the fines, SeatGeek’s Vice President of Government Affairs, Joe Freeman, did not disclose whether the company intends to pay the penalties or contest them. Despite SeatGeek’s efforts to alert third-party sellers on its platform about the law, Freeman mentioned that the company is seeking clarity from the province on compliance procedures.
The company faces challenges in verifying the original ticket value, especially when sellers, such as season ticket holders, lack access to this information. Similar to StubHub Canada, SeatGeek argues that it is difficult to ascertain the initial ticket price due to various factors like package purchases and the potential manipulation of receipts by resellers.
StubHub emphasizes the necessity of obtaining data from the original purchasing platform to confirm prices and abide by the law. The company expressed ongoing commitment to collaborating with the government to resolve outstanding issues related to verifying a ticket’s original price.
On another platform, Vivid Seats, certain listings for TIFF events were spotted above prices reported by fans during member sales. A spokesperson for Vivid Seats, Julia Young, defended the company’s actions, stating that they are engaged in dialogue with Ontario officials to ensure compliance with the province’s ticket resale regulations.
In a bid to enforce compliance, the province had notified 27 ticket resale websites, including StubHub and Vivid Seats, about impending inspections for adherence to the new legislation. StubHub was subsequently added to the province’s consumer alert list for alleged non-compliance. Vivid Seats aimed to achieve compliance by July and remained in discussions with the province to fulfill its obligations.