Ontario has issued what is potentially its initial fine against a ticket resale platform under the province’s anti-scalping legislation, as resellers continue to seek buyers for tickets to upcoming events like the Toronto International Film Festival.
The province’s consumer advisory website has indicated that SeatGeek Canada was fined $25,000 in late August, marking a notable enforcement action under the ticket resale law enacted in April, with no other fines listed for ticket sellers. The fine details reveal that SeatGeek was penalized $10,000 for allegedly selling a ticket above its face value, $5,000 for not disclosing the original purchase price of a ticket, and an additional $10,000 for purportedly facilitating a transaction without proof of the original price.
When asked about the specifics of the fines and potential future enforcement actions, Cristian Buzo Tingarov, a spokesperson for Ontario Minister of Public and Business Service Delivery Stephen Crawford, did not provide details.
“All ticket sellers in Ontario are required to adhere to legislation that prohibits ticket resale above face value,” Tingarov stated via email. “Violators could face fines of up to $250,000 and public disclosure.”
Regarding the fines imposed, SeatGeek’s vice president of government affairs, Joe Freeman, did not confirm whether the company intends to pay the fines or contest them. While SeatGeek has informed third-party sellers on its platform about the law, Freeman mentioned that the company is seeking guidance from the province on compliance measures.
Freeman highlighted the challenge of verifying the original value of tickets, particularly when sellers like season ticket holders may lack access to this information. He emphasized that independent platforms such as SeatGeek face limitations in obtaining or confirming the initial ticket prices.
StubHub Canada echoed similar sentiments when questioned about listings for TIFF screenings on its platform, stating that some tickets, including those from package deals, lack pricing information, making it difficult to validate original prices.
StubHub emphasized the need for data from the original ticket purchase platform to confirm prices and comply with the law, highlighting unresolved issues regarding the proof sellers need to provide for verifying a ticket’s original price.
Meanwhile, Vivid Seats disclosed that it has been engaged in active dialogue with the Ontario government to ensure compliance with the province’s new ticket resale framework, implementing changes to meet regulatory requirements.
The province had previously warned 27 ticket resale websites, including StubHub and Vivid Seats, about potential non-compliance with the law, with follow-up inspections and enforcement actions threatened for non-cooperation. StubHub was later added to the consumer beware list for alleged lack of compliance, while Vivid Seats indicated progress in addressing identified areas of non-compliance.
As the province continues its enforcement efforts, both SeatGeek and other ticket resale platforms face ongoing scrutiny and compliance challenges under Ontario’s anti-scalping legislation.
