Ontario has levied a potential inaugural fine against a ticket resale platform in accordance with the province’s anti-scalping legislation, which is currently undergoing tests as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
It was reported that SeatGeek Canada was fined $25,000 in late August, marking the absence of fines for other ticket vendors and indicating that SeatGeek might be the first to face financial penalties under the ticket resale law introduced 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 another $10,000 for allegedly facilitating a transaction without proof of the initial price.
When queried about the event associated with the fines and potential future penalties, Cristian Buzo Tingarov, a spokesperson for Ontario’s Minister of Public and Business Service Delivery Stephen Crawford, refrained from providing specific details.
“All ticket sellers in Ontario are mandated to adhere to the legislation prohibiting ticket resale above face value,” Tingarov mentioned in an email, emphasizing the potential fines of up to $250,000 for violators.
Regarding SeatGeek’s response to the fines, the company’s vice president of government affairs, Joe Freeman, did not clarify whether they intend to pay the fines or challenge them. Freeman highlighted that SeatGeek is striving to obtain guidance from the province on compliance with the regulations, particularly amid difficulties in confirming the original ticket value for various sellers.
StubHub Canada echoed a similar sentiment, stating challenges in verifying original ticket prices, particularly for season package tickets, and highlighted the potential for manipulated receipts by resellers to inflate prices.
In light of listings exceeding face value, StubHub emphasized the need for access to original purchase data to comply with the law, underscoring unresolved issues in confirming ticket prices.
Moreover, some Toronto International Film Festival (TIFF) listings appearing above reported prices by fans during member sales were also found on Vivid Seats. Vivid Seats spokesperson Julia Young rebutted claims of non-compliance, citing active engagement with the Ontario government to align with the province’s ticket resale regulations.
The province had previously notified 27 ticket resale websites, including StubHub and Vivid Seats, of impending inspections for compliance with the new law and warned of potential enforcement actions for non-cooperation.
While StubHub was added to the province’s consumer beware list for alleged non-compliance, Vivid Seats stated progress in rectifying non-compliance areas highlighted by the government and ongoing discussions to meet obligations.
The province has not updated its consumer beware list with information on any fines issued following the inspection notices sent out in April and May.
The developments underscore the evolving landscape of ticket resale regulations and the efforts by platforms to align with the legal framework while grappling with compliance challenges.