Ontario has potentially issued its first penalty against a ticket resale platform under the province’s anti-scalping legislation, which is being challenged as resellers seek to sell tickets for events like the Toronto International Film Festival. According to the province’s consumer-alert website, SeatGeek Canada was fined $25,000 in late August, marking a possible initial instance of financial consequences for a ticket seller under the law implemented in April. The penalty details indicate that SeatGeek was sanctioned $10,000 for purportedly vending a ticket above its original value, $5,000 for failing to disclose the ticket’s initial purchase price, and an additional $10,000 for allegedly facilitating a transaction without verifying the original price.
Cristian Buzo Tingarov, a representative for Ontario’s Minister of Public and Business Service Delivery Stephen Crawford, declined to provide specifics regarding the event associated with the fines and whether more penalties will be issued. “All ticket vendors in Ontario are required to adhere to the legislation prohibiting ticket resale above face value,” he stated in an email. “Any violator may face fines of up to $250,000 and public disclosure.”
Regarding the fines, SeatGeek’s vice president of government affairs, Joe Freeman, did not confirm whether the company intends to pay the penalties 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 complying with the regulations. He noted the challenge of verifying the original ticket value, especially when sellers like season ticket holders may lack access to such information.
StubHub Canada made a similar argument when asked about listings for Toronto International Film Festival screenings on its site. Notably, tickets for certain film premieres were listed at prices exceeding previous reports from fans during member sales, indicating potential violations of the legislation. StubHub explained that the absence of pricing information on certain tickets, along with the ease of altering receipts by resellers, hinders their ability to confirm original prices and comply with the law.
Furthermore, some TIFF listings showing prices above reported values have appeared on Vivid Seats as well. For instance, tickets for the premiere of films like Fjord and Rapinoe were listed at prices exceeding face value. A Vivid Seats spokesperson, Julia Young, emphasized the company’s efforts to engage with Ontario officials and implement changes to adhere to the ticket resale regulations. She underscored the need for clear guidance across the industry to ensure effective compliance with the new framework established by the province.
In response to potential non-compliance, the province had issued warnings to 27 ticket resale websites, including StubHub and Vivid Seats, earlier this year. The businesses were informed of upcoming inspections for adherence to the new legislation, with the possibility of enforcement action for non-cooperation. StubHub was subsequently added to the province’s consumer alert list for alleged non-compliance, though no updates on fines were provided. Vivid Seats indicated progress in addressing compliance issues highlighted by the government and expressed ongoing discussions with the province on meeting obligations.