Ontario has reportedly imposed a potential first penalty on a ticket resale platform under the province’s anti-scalping legislation, which is being tested as resellers seek to sell tickets for upcoming events like the Toronto International Film Festival.
SeatGeek Canada was fined $25,000 in late August, as indicated on the province’s consumer protection website. This fine marks a notable enforcement action under the ticket resale law implemented in April, with SeatGeek facing financial consequences for alleged violations.
The breakdown of the fine reveals that SeatGeek was penalized $10,000 for purportedly selling a ticket above its face value, $5,000 for failing to disclose the original purchase price of a ticket, and another $10,000 for allegedly facilitating a transaction without proof of the ticket’s original price.
When asked about the specific event linked to the fines and the possibility of issuing additional fines, Cristian Buzo Tingarov, a spokesperson for Ontario’s Minister of Public and Business Service Delivery Stephen Crawford, did not provide details.
“All ticket sellers in Ontario must adhere to the legislation prohibiting ticket resale above face value,” Tingarov stated in an email. “Violators could face fines up to $250,000 and public disclosure.”
Regarding the fines imposed on SeatGeek, the company’s Vice President of Government Affairs, Joe Freeman, did not confirm whether SeatGeek intends to pay the fines or contest them. Freeman mentioned that while SeatGeek has informed third-party sellers on its platform about the law, the company is seeking guidance from the province on compliance procedures.
Freeman highlighted the challenges SeatGeek faces in verifying the original ticket value, especially when sellers, such as season ticket holders, may not have access to this information. He emphasized that independent platforms like SeatGeek have limited means to verify the purchase price from the primary seller.
StubHub Canada echoed similar concerns when asked about listings for Toronto International Film Festival screenings on its platform. The company argued that not all tickets, particularly those bought as part of a package, display prices, and emphasized the difficulty in verifying original prices without data from the original purchase platform.
StubHub emphasized the need for clarity on the evidence sellers must provide to verify a ticket’s original price and expressed commitment to collaborating with the government on resolving such issues.
Similarly, Vivid Seats faced scrutiny for listings above reported prices during member sales for TIFF events. A Vivid Seats spokesperson stated that the company is actively engaging with the Ontario government to ensure compliance with the new ticket resale regulations.
In recent communications, Ontario informed 27 ticket resale websites, including StubHub and Vivid Seats, of upcoming inspections for compliance with the anti-scalping law. The province cautioned that lack of cooperation could lead to enforcement actions.
While StubHub was added to the consumer beware list for alleged non-compliance, the province has not disclosed any fines related to the platform. Vivid Seats reported progress in addressing compliance issues highlighted by the government and anticipated full compliance in the near future.
The enforcement actions and ongoing dialogues with ticket resale platforms underscore the efforts to uphold the regulations aimed at curbing ticket scalping in Ontario.