Ontario has levied a potential first penalty against a ticket resale platform under the province’s anti-scalping legislation, which is being tested as resellers seek to offload 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 advisory website. This marks the first known financial penalty for ticket sellers under the law implemented in April. The fine breakdown includes $10,000 for selling a ticket above its face value, $5,000 for failing to disclose the original ticket purchase price, and another $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 regarding the specific event linked to the fines or whether additional penalties are forthcoming.
According to Tingarov, all ticket vendors in Ontario are required to adhere to the legislation prohibiting ticket resale above face value. Violators could face fines up to $250,000 and public disclosure.
Regarding the fines, Joe Freeman, SeatGeek’s vice-president of government affairs, did not confirm whether the company intends to pay the penalties or contest them. Despite notifying third-party sellers about the law, Freeman mentioned that SeatGeek is seeking guidance from the province on compliance procedures.
Freeman highlighted the challenge of verifying the original ticket value, especially when sellers such as season ticket holders may lack access to this information. StubHub Canada made a similar argument, citing difficulties in confirming original ticket prices due to the absence of pricing on tickets bought as part of a package.
Ticket listings for TIFF screenings on various platforms, including StubHub and Vivid Seats, have drawn attention for exceeding reported prices. While StubHub emphasized compliance with Ontario’s regulations, it pointed out the lack of mechanisms to ascertain original ticket prices accurately.
Vivid Seats, on the other hand, defended its actions, stating an ongoing dialogue with Ontario officials to ensure compliance with the new ticket resale framework. The company expressed the necessity of clear industry guidelines to facilitate effective implementation of the legislation.
In response to non-compliance warnings from the province, both StubHub and Vivid Seats have made efforts to address identified issues. StubHub was added to the province’s consumer alert list for alleged non-compliance, while Vivid Seats indicated progress toward meeting regulatory requirements.
The province previously notified 27 ticket resale websites, including StubHub and Vivid Seats, of impending inspections for adherence to the anti-scalping law. Failure to cooperate may result in enforcement actions, as emphasized in the warning letters sent by Ontario authorities.
