Ontario has levied what appears to be 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.
SeatGeek Canada was reportedly fined $25,000 in late August, as per the province’s consumer protection website. This marks the first instance of a ticket seller facing financial consequences under the law implemented in April. The breakdown of the fine reveals that SeatGeek was sanctioned $10,000 for allegedly selling a ticket above its face value, $5,000 for failing to disclose the original purchase price, and an additional $10,000 for purportedly facilitating a transaction without proof of the original price.
A representative for Ontario’s Minister of Public and Business Service Delivery, Stephen Crawford, declined to comment on the specific event linked to the fines or whether further penalties would be issued.
“All ticket vendors in Ontario are required to adhere to the legislation prohibiting ticket resale above face value,” a statement from the ministry read. “Violators could face fines of up to $250,000 and public disclosure.”
Regarding the fines, SeatGeek’s Vice President of Government Affairs, Joe Freeman, did not confirm whether the company intends to pay or contest them. While SeatGeek has notified third-party sellers about the law, Freeman mentioned the company is seeking guidance from the province on compliance procedures.
Freeman explained the challenges faced by SeatGeek in verifying the original ticket value, particularly for sellers who lack access to the face value information. He emphasized that independent platforms like SeatGeek have limited means to authenticate the initial purchase price.
StubHub Canada echoed similar sentiments regarding Toronto International Film Festival (TIFF) listings on its platform. The company emphasized the difficulty in confirming ticket prices without data from the original ticketing platform.
StubHub mentioned the unresolved issues surrounding the verification of a ticket’s original price and expressed commitment to collaborating with the government to address these concerns.
Vivid Seats, another resale platform, defended its compliance efforts, stating it has been actively engaging with Ontario authorities to align with the new ticket resale regulations.
The province had previously notified 27 ticket resale websites, including StubHub and Vivid Seats, about potential non-compliance with the law. Subsequent inspections were warned of, with enforcement actions threatened for non-cooperation.
StubHub was later added to the province’s consumer watch list for alleged non-compliance, while Vivid Seats reported progress in rectifying identified issues.
Both companies emphasized ongoing dialogues with Ontario officials to ensure compliance with the legislation.