Ontario has imposed what appears to be its initial penalty against 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.
SeatGeek Canada was fined $25,000 in late August, as per the province’s consumer-protection website. This marks the first known instance of a ticket seller facing financial consequences under the ticket resale law enacted in April. The fine breakdown includes $10,000 for allegedly selling a ticket above face value, $5,000 for not disclosing the original purchase price, and an additional $10,000 for purportedly facilitating a transaction without proof of the original price.
Cristian Buzo Tingarov, a representative for Ontario Minister of Public and Business Service Delivery Stephen Crawford, did not respond to inquiries regarding the event associated with the fines or the possibility of further penalties.
“All ticket sellers in Ontario are required to adhere to the legislation prohibiting ticket resale above face value,” stated Tingarov via email. “Violators could face fines of up to $250,000 and public disclosure.”
SeatGeek’s Vice President of Government Affairs, Joe Freeman, did not indicate whether the company intends to pay the fines or contest them. While SeatGeek has advised third-party sellers about the law, Freeman mentioned the company is seeking guidance from the province on compliance procedures.
The company faces challenges in verifying the original ticket value, especially when sellers, such as season ticket holders, lack access to this information. StubHub Canada echoed similar sentiments concerning Toronto International Film Festival (TIFF) listings on its platform.
On StubHub, tickets for events like Werner Herzog’s film “Bucking Fastard” were listed for over $2,300, with a single seat for Hudson Williams’ TV show “Yaga” priced at $777. TIFF did not comment on ticket pricing.
StubHub explained that the inability to confirm original ticket prices leads to listings above face value due to the absence of data from the original purchase platform, making compliance challenging.
Vivid Seats also faced similar issues with TIFF listings exceeding prices reported during member sales. A spot for the premiere of “Fjord” was priced at $933, while a ticket for the debut of the biopic “Rapinoe” was listed at $483.
Vivid Seats spokesperson Julia Young emphasized the company’s active engagement with the Ontario government to comply with the new ticket resale regulations.
In April and May, the province notified 27 ticket resale websites, including StubHub and Vivid Seats, of impending inspections for compliance. The province cautioned that non-cooperation could lead to enforcement actions.
Following the inspections, StubHub was added to the province’s consumer beware list for alleged non-compliance. Vivid Seats indicated progress in addressing compliance issues highlighted by the government.
The company anticipated full compliance in July but continued discussions with the province to meet regulatory requirements.
