Ontario has imposed what could be its inaugural penalty on a ticket resale platform under the province’s anti-scalping legislation, which is facing challenges as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
According to the province’s consumer protection website, SeatGeek Canada was fined $25,000 at the end of August, with no other fines listed for ticket vendors, indicating that SeatGeek might be the first to incur financial consequences under the ticket resale law enacted in April.
The breakdown of the penalty reveals that the company was fined $10,000 for allegedly 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 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 associated with the fines and whether more fines will be issued by the province.
“All ticket sellers in Ontario must adhere to our legislation prohibiting ticket resales above face value,” stated Tingarov in an email. “Violators could face fines of up to $250,000 and public disclosure.”
SeatGeek’s Vice President of Government Affairs, Joe Freeman, did not confirm whether the company intends to pay the fines or challenge them. Despite notifying third-party sellers on its platform about the law, SeatGeek is seeking guidance from the province on compliance procedures.
Freeman highlighted the difficulty faced by SeatGeek in verifying the original ticket value, particularly when sellers, such as season ticket holders, lack access to this information. This limitation means that platforms like SeatGeek have minimal ability to verify the purchase price from the primary seller.
StubHub Canada echoed similar sentiments regarding Toronto International Film Festival (TIFF) listings on its website, emphasizing the challenge of confirming original ticket values.
TIFF declined to comment on ticket pricing. Fans who purchased tickets during member sales reported premium screenings listed well above face value, with TIFF previously offering a ticket package to five premieres for $1,760, translating to approximately $352 per ticket.
StubHub argued that listings exceeding face value result from the platform’s inability to verify buyers’ original ticket prices, citing issues with obtaining data from the original purchase platform to comply with the law.
The company emphasized unresolved issues regarding the proof required from sellers to verify a ticket’s original price and expressed commitment to collaborating with the government to address these concerns.
Vivid Seats, in response to questions, stated that it is actively engaged with the Ontario government to ensure compliance with the new ticket resale framework, dismissing claims of non-compliance.
In late April and early May, the province issued warning letters to 27 ticket resale websites, including StubHub and Vivid Seats, about potential non-compliance checks with the new law. StubHub was subsequently added to the province’s consumer alert list for alleged lack of compliance.
Vivid Seats indicated progress in addressing areas of non-compliance identified by the government, aiming for full compliance while ongoing discussions with the province continue.