Ontario has levied what may be its initial penalty against a ticket resale platform under the region’s anti-scalping regulations, which are being put to the test as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
According to Ontario’s consumer-warning website, SeatGeek Canada was fined $25,000 in late August, with no other fines listed for ticket vendors, indicating that SeatGeek could be the first to face financial consequences under the ticket resale legislation introduced in April.
The 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 ticket 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, declined to provide specifics on the event linked to the fines or whether additional penalties will be issued.
“All ticket sellers in Ontario are required to adhere to the law that prohibits reselling tickets above face value,” Tingarov stated in an email. “Violators could face fines of up to $250,000 and be publicly named.”
Regarding the fines, 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 cautioned third-party sellers on its platform about the law, Freeman mentioned that the company is seeking guidance from the province on complying with the regulations.
Freeman explained that it can be difficult for SeatGeek to verify the original value of a ticket since many sellers, including season ticket holders, lack access to the ticket’s original face value. This limitation, he noted, makes it challenging for independent platforms like SeatGeek to confirm or verify the purchase price from the primary seller.
StubHub Canada echoed similar sentiments when questioned about listings for Toronto International Film Festival screenings on its platform, emphasizing the lack of pricing information on certain tickets acquired as part of a package or the ease with which receipts can be altered by resellers.
The company underscored the need for data from the original ticket purchase platform to confirm prices and ensure compliance with the law. StubHub emphasized that unresolved issues, such as the documentation sellers should provide to validate a ticket’s original price, need to be addressed collaboratively with the government.
Certain TIFF listings that appeared above face value were also spotted on Vivid Seats, with a spot at the premiere of Fjord listed for $933 and a ticket for the debut of Rapinoe priced at $483. Vivid Seats maintained that it has been engaging with Ontario officials to align with the new ticket resale regulations and make necessary changes for compliance.
In late April and early May, the province notified 27 ticket resale websites, including StubHub and Vivid Seats, of upcoming inspections for compliance with the legislation. StubHub was subsequently added to the consumer beware list for alleged non-compliance, though no fines have been reported. Vivid Seats stated that it had rectified the identified areas of non-compliance and was working towards full compliance while continuing discussions with the province.
