Ontario has imposed a potential initial penalty on a ticket resale platform under the province’s anti-scalping legislation. The law is being tested as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
SeatGeek Canada has been fined $25,000 in late August, as revealed on the province’s consumer protection website. This marks the first instance of a ticket seller facing financial consequences under the ticket resale law enacted in April. The breakdown of the fine includes a $10,000 penalty for selling a ticket above face value, $5,000 for failing to disclose the original ticket purchase price, and another $10,000 for 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 associated with the fines or whether additional fines 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.
Regarding the fines, SeatGeek’s Vice President of Government Affairs, Joe Freeman, did not confirm whether the company intends to pay the fines or contest them. Freeman mentioned that while SeatGeek has advised third-party sellers on the law, the company is seeking guidance from the province on compliance procedures.
SeatGeek and StubHub Canada have both cited challenges in verifying original ticket prices, especially for tickets acquired in bundles or from season ticket holders. StubHub highlighted the difficulty in confirming buyers’ original ticket prices due to the lack of accessible data from the initial ticket purchase platform.
Moreover, some Toronto International Film Festival listings on various resale platforms exceed reported fan prices, triggering discussions on compliance with Ontario’s ticket resale laws. Vivid Seats defended its actions, stating that it has been actively engaging with the Ontario government to ensure adherence to the new regulations.
The province previously notified 27 ticket resale websites, including StubHub and Vivid Seats, of potential non-compliance with the law. Following these warnings, StubHub was added to the province’s consumer alert list for alleged non-compliance, although no fines have been reported to date. Vivid Seats indicated progress in addressing compliance issues identified by the government and expressed ongoing dialogue with provincial authorities to meet regulatory requirements.