Ontario has potentially issued its first penalty against a ticket resale platform in accordance with the province’s anti-scalping legislation, which is being put to the test as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
The consumer-alert website of the province disclosed that SeatGeek Canada was fined $25,000 in late August, with no other fines listed for ticket vendors, indicating SeatGeek may be the inaugural recipient of financial penalties under the ticket resale law implemented in April.
Details of the penalty reveal that the company was fined $10,000 for allegedly 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 purportedly 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 comment on the specific event linked to the fines and whether additional penalties will be imposed by the province.
“All ticket sellers in Ontario must adhere to our legislation prohibiting the resale of tickets above face value,” Tingarov stated via email. “Any violators could face fines of up to $250,000 and be publicly identified.”
SeatGeek’s Vice President of Government Affairs, Joe Freeman, did not confirm whether the company intends to pay the fines or challenge them. Despite SeatGeek’s warnings to third-party sellers 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, particularly when sellers, such as season ticket holders, lack access to this information. This limitation makes it difficult for platforms like SeatGeek to authenticate the purchase price of a ticket from the primary seller.
Similar to SeatGeek, StubHub Canada raised concerns about listings for Toronto International Film Festival screenings on its platform. A pair of tickets for a film was listed for over $2,300, while a single seat for a TV show debut was priced at $777.
StubHub explained that the absence of pricing on certain tickets, like those sold in a package, and the ease of altering receipts by resellers contribute to listings above face value. The company emphasized the need for information from the original ticket platform to validate prices and comply with regulations.
StubHub expressed its commitment to collaborating with the government to address unresolved issues, such as the proof required from sellers to verify a ticket’s original price.
Vivid Seats also faced scrutiny for listings exceeding reported prices during member sales for TIFF events. A spot at the premiere of a film was priced at $933, while a ticket for a biopic debut was listed at $483. Vivid Seats emphasized ongoing communication with the Ontario government to ensure compliance with the new ticket resale framework.
In late April and early May, the province notified 27 ticket resale websites, including StubHub and Vivid Seats, of inspections for compliance with the legislation. Failure to cooperate could lead to enforcement actions, as indicated in the province’s warning letters to businesses. StubHub was subsequently added to the consumer beware list for alleged non-compliance.
Vivid Seats indicated progress in addressing non-compliance areas identified by the Ontario government and expressed its commitment to achieving full compliance while engaging in discussions with the province on meeting obligations.