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 events like the Toronto International Film Festival. SeatGeek Canada was fined $25,000 in late August, as per the province’s consumer-protection website, making it the first known case of financial consequences under the ticket resale law enacted in April. The penalty breakdown includes $10,000 for allegedly selling a ticket above its face value, $5,000 for failing to disclose the original purchase price, and a further $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 details on the event linked to the fines or potential future penalties.
“All ticket sellers in Ontario must adhere to our law prohibiting ticket resale above face value. Violators could face fines of up to $250,000 and public disclosure,” stated a communication from the ministry.
Regarding the fines, SeatGeek’s vice president of government affairs, Joe Freeman, did not confirm whether the company intends to pay or contest them. Despite advising third-party sellers about the law, Freeman mentioned the company is seeking guidance from the province on compliance procedures. He also highlighted the challenge in verifying the original ticket value, especially for sellers without access to such information.
Similarly, StubHub Canada pointed out issues in confirming original ticket prices due to lack of information and potential for manipulated receipts by resellers. The company stressed the need for data from the original ticket platform to comply with the law.
Vivid Seats, another resale platform, defended its compliance efforts, stating it is in active dialogue with the Ontario government to meet the new resale regulations. The company emphasized the necessity for clear industry-wide guidance to ensure effective implementation of the legislation.
In response to non-compliance warnings sent by the province, StubHub and Vivid Seats have made efforts to rectify identified issues. Vivid Seats expects to achieve compliance soon but remains engaged in discussions with authorities to fulfill its obligations.
