Ontario has imposed what could potentially be its inaugural penalty on 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.
According to the province’s consumer advisory website, SeatGeek Canada was fined $25,000 in late August, with no other fines recorded for ticket vendors, indicating that SeatGeek might be the first to face financial consequences under the ticket resale law enacted in April.
The breakdown of the penalty reveals that the company was fined $10,000 for allegedly selling a ticket above its face value, $5,000 for failing to disclose the original purchase price of a ticket, and an additional $10,000 for allegedly 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 comment on the specific event linked to the fines or whether the province plans to issue more penalties.
“All ticket sellers in Ontario must adhere to our legislation prohibiting ticket resale above face value,” he stated in an email, emphasizing that 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 indicate 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.
Freeman explained the challenges SeatGeek faces in verifying the original value of tickets, particularly when sellers like season ticket holders may not have access to this information. He highlighted that independent platforms like SeatGeek have limited means to confirm or validate the initial purchase price of tickets.
StubHub Canada raised similar concerns when questioned about listings for Toronto International Film Festival screenings on its platform. A pair of tickets for Werner Herzog’s film “Bucking Fastard” was listed for over $2,300 on StubHub, while a single seat for Hudson Williams’ TV show “Yaga” debut was priced at $777.
TIFF did not provide a comment on ticket pricing, while StubHub argued that its inability to confirm original ticket prices is due to the lack of data from the original ticket purchase platform. StubHub stated that sellers may not have prices on tickets purchased as part of a season package and that receipts can be manipulated by resellers to inflate prices.
The company emphasized the need for clarity on verifying original ticket prices and expressed its commitment to collaborating with the government to address these unresolved matters.
Similarly, some listings for TIFF events found on Vivid Seats appeared to exceed prices reported by fans during member sales. A spot for the premiere of “Fjord” was listed for $933, and a ticket for the debut of the soccer biopic “Rapinoe” was priced at $483.
Vivid Seats spokesperson Julia Young refuted claims of non-compliance, stating that the company is actively engaging with the Ontario government to ensure adherence to the new ticket resale regulations.
In late April and early May, the province notified 27 ticket resale websites, including StubHub and Vivid Seats, of impending inspections for compliance with the legislation. StubHub was later added to the province’s consumer warning list for alleged non-compliance.
Vivid Seats confirmed in July that they had rectified most identified areas of non-compliance and were working towards full compliance while continuing discussions with the province on meeting their obligations.
