Ontario has levied a potential initial fine against a ticket resale platform under the province’s anti-scalping legislation, which is being tested as resellers seek to sell 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 listed for ticket sellers, indicating that SeatGeek may be the first to face financial penalties under the ticket resale law enacted in April.
The fine details reveal that the company was penalized $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 supposedly 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 information on the specific event linked to the fines or whether more fines would be issued by the province.
“All ticket sellers in Ontario must adhere to our legislation prohibiting ticket resale above face value,” Tingarov stated in an email. “Violators may face fines up to $250,000 and public exposure.”
Regarding the fines imposed, SeatGeek’s vice-president of government affairs Joe Freeman did not disclose whether the company intends to pay the fines or contest them. Despite notifying third-party sellers about the law, Freeman mentioned that SeatGeek is seeking guidance from the province on compliance procedures.
Freeman highlighted the challenge in verifying the original ticket value, particularly for sellers like season ticket holders who may lack access to this information, limiting platforms like SeatGeek in confirming or validating purchase prices.
StubHub Canada echoed similar sentiments, arguing that the absence of prices on some tickets, such as those sold in packages, along with the ease of falsifying receipts by resellers, complicates efforts to verify original ticket prices and comply with the law.
The company emphasized the need for data from the original ticket purchase platform to confirm prices accurately, emphasizing their commitment to working with the government to resolve outstanding issues.
TIFF screenings listed on StubHub included tickets priced above face value, with the festival selling curated ticket packages at a lower rate earlier in the season. StubHub attributed these discrepancies to the challenge of confirming original purchase prices.
Vivid Seats, another resale platform, disputed claims of non-compliance, stating active engagement with Ontario officials to align with the new ticket resale regulations. The company emphasized the need for clear industry guidance to ensure compliance and continued collaboration with the province to clarify legislation requirements.