Ontario has issued a potential first penalty against a ticket resale platform under the province’s anti-scalping legislation, which is being challenged as resellers attempt to sell tickets for events like the Toronto International Film Festival.
According to the province’s consumer-protection website, SeatGeek Canada was fined $25,000 in late August, marking the first instance of financial consequences for a ticket seller under the law initiated in April. The fine breakdown includes $10,000 for allegedly selling a ticket above its face value, $5,000 for failure to disclose the original purchase price, and an additional $10,000 for allegedly facilitating a transaction without proof of the original price.
Cristian Buzo Tingarov, speaking on behalf of Ontario’s Minister of Public and Business Service Delivery Stephen Crawford, declined to provide details on the specific event linked to the fines and whether more fines will be issued.
“All ticket sellers in Ontario are required to adhere to the legislation prohibiting ticket resale above face value,” stated Tingarov in an email. “Violators could face fines up to $250,000 and public disclosure.”
Regarding SeatGeek’s response, Joe Freeman, the company’s vice president of government affairs, did not confirm whether SeatGeek will pay the fines or contest them. Freeman mentioned that SeatGeek has cautioned third-party sellers about the law but is seeking guidance from the province on compliance procedures.
Freeman noted the challenge in verifying the original ticket price, especially for sellers like season ticket holders who may lack access to this information. Independent platforms, such as SeatGeek, face limitations in verifying purchase prices from primary sellers.
StubHub Canada echoed similar concerns when questioned about listings for TIFF screenings on its platform. A pair of tickets for Werner Herzog’s film “Bucking Fastard” were listed for over $2,300, with a single seat for the debut of “Yaga” priced at $777.
TIFF did not comment on the ticket pricing issue, while StubHub highlighted the difficulty in confirming original ticket prices due to the lack of data from the primary seller platform. The company emphasized its commitment to collaborating with the government to resolve such challenges.
Vivid Seats, another resale platform, refuted claims of non-compliance, stating they are actively engaging with the Ontario government to ensure adherence to the new ticket resale regulations. The company emphasized the need for clear guidance and industry-wide cooperation for effective implementation of the legislation.
In response to the province’s scrutiny, StubHub and Vivid Seats received inspection notifications in late April and early May, with the possibility of follow-up inspections and enforcement actions for non-cooperation. StubHub was added to the province’s consumer beware list for alleged non-compliance, while Vivid Seats reported progress in addressing identified issues and ongoing discussions with the province to meet compliance requirements.