Ontario has levied what may be its inaugural penalty against a ticket resale platform under the region’s anti-scalping regulations, which are being challenged as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
As per the province’s consumer protection website, SeatGeek Canada was fined $25,000 in late August, with no other fines recorded for ticket vendors, indicating that SeatGeek could be the first to face financial consequences under the ticket resale rules implemented in April.
The fine breakdown reveals that the company was sanctioned $10,000 for purportedly selling a ticket above its face value, $5,000 for failing to disclose the original ticket purchase price, and an additional $10,000 for allegedly facilitating a transaction without verifying the original price.
Cristian Buzo Tingarov, a spokesperson for Ontario Minister of Public and Business Service Delivery Stephen Crawford, refrained from commenting on the specific event linked to the fines and whether further penalties would be issued.
“All ticket sellers in Ontario are mandated to adhere to our legislation prohibiting ticket resale above face value,” he highlighted in an email. “Any violator of these regulations could face fines of up to $250,000 and public disclosure.”
Regarding SeatGeek’s response to the fines, Joe Freeman, the company’s vice president of government affairs, did not confirm whether they intend to pay the penalties or contest them. Despite SeatGeek cautioning third-party sellers about the law, Freeman mentioned the ongoing efforts to seek guidance from the province on compliance procedures.
Freeman pointed out the challenges faced by SeatGeek in verifying the original ticket value, especially when many sellers, including season ticket holders, lack access to this information. He emphasized that independent platforms like SeatGeek have limited means to authenticate the purchase price from the primary seller.
Similarly, StubHub Canada raised similar concerns about listings for Toronto International Film Festival screenings on its platform. Tickets for various screenings were reportedly priced above what fans had indicated during member sales, prompting speculation about compliance with the regulations.
Furthermore, StubHub argued that the absence of price information on certain tickets, such as those bought as part of a package, coupled with the ease of falsifying receipts by resellers, contributes to the challenge of verifying original prices and ensuring compliance with the law.
The company stressed the need for collaboration with the government to address unresolved issues, such as the proof sellers should provide to confirm a ticket’s original price.
Vivid Seats, another ticket resale platform, also faced scrutiny for listings exceeding reported prices by fans during member sales for TIFF events. The company emphasized its engagement with Ontario officials to align with the new ticket resale framework and ensure compliance with the province’s requirements.
In conclusion, the enforcement of Ontario’s anti-scalping laws has stirred debates and challenges within the ticket resale industry, with platforms like SeatGeek, StubHub, and Vivid Seats navigating compliance issues and seeking clarity on regulatory obligations.
