Ontario has imposed a potential initial penalty against a ticket resale platform under the province’s anti-scalping legislation, which is being tested as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
The province’s consumer advisory website revealed that SeatGeek Canada was fined $25,000 in late August, marking the first known instance of a ticket seller facing financial consequences under the ticket resale law enacted in April.
Details of the fine indicate that the company was sanctioned $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 providing proof of the original price.
Cristian Buzo Tingarov, a representative for Ontario Minister of Public and Business Service Delivery Stephen Crawford, declined to comment on the specific event associated with 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,” he stated via email. “Violators could face fines up to $250,000 and public disclosure.”
Regarding the fines, SeatGeek’s Vice President of Government Affairs Joe Freeman did not indicate whether the company intends to pay the penalties or challenge 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 how to comply with the regulations.
Freeman highlighted the difficulty in verifying the original ticket value, particularly for sellers like season ticket holders who may not have access to that information. He noted that independent platforms such as SeatGeek face challenges in obtaining or confirming the price paid at the time of purchase.
StubHub Canada echoed similar sentiments when questioned about TIFF screenings recently listed on its platform. The company emphasized the lack of pricing information on certain tickets, as well as the potential for altered receipts by resellers seeking to inflate prices.
StubHub emphasized the need for data from the original ticket purchase platform to validate prices and ensure compliance with the law. The company expressed willingness to collaborate with the government to address unresolved issues related to verifying a ticket’s original price.
TIFF listings appearing above reported prices by fans during member sales also surfaced on Vivid Seats. A spot at the premiere of Fjord was listed for $933, while a ticket for the debut of Rapinoe was priced at $483 on the platform this week.
Vivid Seats spokesperson Julia Young refuted claims of non-compliance, stating that the company is actively engaging with the Ontario government to align with the province’s ticket resale regulations.
In April and May, the province notified 27 ticket resale websites, including StubHub and Vivid Seats, about upcoming compliance inspections. Failure to cooperate could lead to enforcement actions, as per the province’s warning.
After sending the inspection letters, the province listed StubHub on its consumer alert list for alleged non-compliance, though no fines have been reported. Vivid Seats indicated progress in addressing compliance issues highlighted by the government and aimed to achieve full compliance while continuing discussions with officials.
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