Ontario has potentially issued its inaugural penalty against a ticket resale platform under the province’s anti-scalping legislation, which is being put to the test as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
According to Ontario’s consumer-alert website, SeatGeek Canada was fined $25,000 in late August, with no other fines listed for ticket vendors, indicating that SeatGeek might be the first to face financial consequences under the ticket resale law enacted in April.
The fine breakdown indicates that the company was penalized $10,000 for reportedly selling 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 verifiable proof of the original price.
Cristian Buzo Tingarov, a spokesperson for the Ontario Minister of Public and Business Service Delivery Stephen Crawford, declined to provide details on the specific event linked to the fines or whether additional penalties would be issued by the province.
“All ticket sellers in Ontario are required to adhere to our legislation prohibiting ticket resales above face value,” Tingarov stated via email. “Violators could face fines of up to $250,000 and public disclosure.”
Regarding the payment of fines, SeatGeek’s vice-president of government affairs Joe Freeman refrained from confirming whether the company intends to pay the fines or challenge them. Despite warning third-party sellers on its platform about the law, Freeman mentioned that SeatGeek is seeking guidance from the province on how to comply with the regulations.
Freeman cited challenges in verifying the original ticket value, particularly when sellers such as season ticket holders lack access to that information, limiting platforms like SeatGeek in confirming or validating the initial purchase price.
In a similar vein, StubHub Canada made analogous arguments when questioned about listings for Toronto International Film Festival (TIFF) screenings on its website.
A set of tickets for Werner Herzog’s film “Bucking Fastard” was listed on StubHub for over $2,300, while a single seat for the debut of the TV show “Yaga” was priced at $777.
TIFF did not comment on ticket pricing.
Fans who purchased tickets during recent member sales reported seeing premium screenings, often including Q-and-A sessions, listed for more than $128. Earlier in the season, TIFF offered a curated package of tickets to five premieres for $1,760, equating to approximately $352 per ticket.
StubHub explained that listings above face value may result from the platform’s inability to ascertain the original purchase price, especially for tickets bought as part of a package or when receipts can be manipulated by resellers aiming to sell above face value.
StubHub emphasized the need for data from the original ticket purchase platform to confirm prices and comply with the law. The company expressed a commitment to resolving issues related to validating a ticket’s original price in collaboration with the government.
Some TIFF listings, seemingly priced higher than reported by fans during member sales, were also found on Vivid Seats.
For instance, a ticket for the premiere of “Fjord” was listed for $933 on Vivid Seats, while a ticket for the debut of the soccer star biopic “Rapinoe” was priced at $483.
Vivid Seats spokesperson Julia Young refuted claims of non-compliance, stating the company has engaged in active discussions with the Ontario government to align with the new ticket resale regulations.
Following letters sent in April and May to 27 ticket resale websites, including StubHub and Vivid Seats, about potential non-compliance, the province warned of inspections and potential enforcement actions for non-cooperation.
After being added to the consumer beware list for alleged non-compliance, StubHub has not been updated with information on fines by the province. Vivid Seats indicated substantial progress in addressing non-compliance areas identified by the Ontario government and continued discussions with the province to fulfill its obligations.