Ontario has issued a potential initial penalty against a ticket resale platform under the province’s anti-scalping legislation, which is facing challenges as resellers attempt 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 known instance of a ticket seller facing financial consequences under the ticket resale law introduced in April.
The breakdown of the fine reveals that SeatGeek was docked $10,000 for allegedly selling a ticket above its face value, $5,000 for not disclosing the original purchase price of a ticket, and another $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 provide details on the specific event linked to the fines or if further penalties would be issued. Tingarov emphasized that all ticket sellers in Ontario must adhere to the legislation prohibiting ticket resale above face value, with potential fines of up to $250,000 and public disclosure for violators.
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 procedures.
According to Freeman, verifying the original ticket value is challenging, especially when sellers like season ticket holders lack access to this information. This limitation hampers independent platforms like SeatGeek from verifying the initial purchase price.
StubHub Canada echoed similar sentiments regarding Toronto International Film Festival screenings on its platform, citing difficulties in confirming original ticket prices due to the absence of pricing on certain tickets and the potential alteration of receipts by resellers.
The ongoing issue includes unresolved matters such as the proof sellers should furnish to validate a ticket’s original price, as highlighted by StubHub in a statement. The company reiterated its commitment to collaborating with the government to address these concerns.
Moreover, listings appearing above face value on some platforms, including Vivid Seats, have raised questions about compliance with legislation. Vivid Seats affirmed its efforts to work with Ontario officials to ensure adherence to the province’s ticket resale regulations.
In response to the compliance checks initiated by the province, StubHub and Vivid Seats were among 27 ticket resale websites notified of potential non-compliance. Subsequent inspections were mentioned in warning letters, with enforcement actions threatened for uncooperative businesses. StubHub was later added to the consumer beware list for alleged non-compliance, although no fines have been reported yet.
Vivid Seats indicated progress in rectifying non-compliant areas identified by the Ontario government, aiming for full compliance while engaging in discussions with provincial authorities to meet their obligations.
