Ontario has levied a potential initial fine against a ticket resale platform under the province’s anti-scalping legislation, as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
According to the province’s consumer alert website, SeatGeek Canada was fined $25,000 in late August, marking the first known financial penalty for a ticket seller under the new resale law implemented in April.
The breakdown of the fine reveals that SeatGeek 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 reportedly 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 on the event associated with the fines and whether more fines are forthcoming.
“All ticket sellers in Ontario are obligated to adhere to the legislation prohibiting ticket resale above face value,” Tingarov stated in an email. “Violators may face fines of up to $250,000 and public disclosure.”
The vice-president of government affairs at SeatGeek, Joe Freeman, refrained from commenting on whether the company intends to pay the fines or contest them. Despite informing third-party sellers on its platform about the law, Freeman mentioned that SeatGeek is seeking guidance from the province on compliance procedures.
Freeman highlighted the challenge in confirming the original ticket value, especially for sellers like season ticket holders who may not have access to that information. He emphasized that independent platforms such as SeatGeek have limited means to verify the initial purchase price from primary sellers.
StubHub Canada echoed similar sentiments when responding to queries regarding Toronto International Film Festival (TIFF) listings on its platform. The company argued that some tickets, particularly those acquired as part of a seasonal package, lack visible prices, making it difficult to ascertain the original cost.
The debate around listings exceeding face value stems from the absence of data from the original ticket purchasing platform, according to StubHub. The company stressed the unresolved issues regarding the proof sellers should provide to validate a ticket’s original price and expressed its commitment to collaborating with the government to address these concerns.
Vivid Seats, another ticket resale platform, refuted claims of non-compliance and emphasized ongoing dialogue with the Ontario government to ensure adherence to the province’s ticket resale regulations.
In response to the new legislation, the province issued notices in April and May to 27 ticket resale websites, including StubHub and Vivid Seats, warning of potential inspections for compliance. StubHub was later added to the province’s consumer alert list for alleged non-compliance, but no fines have been reported yet.
Vivid Seats indicated progress in rectifying identified areas of non-compliance and anticipated full compliance shortly, pending further discussions with the province.