Ontario has imposed what might be its initial penalty against a ticket resale platform under the province’s anti-scalping legislation, which is being challenged as resellers seek to offload tickets for upcoming events like the Toronto International Film Festival.
According to the province’s consumer warning site, SeatGeek Canada was fined $25,000 at the end of August, with no other fines listed for ticket vendors, indicating that SeatGeek could be the first to face financial consequences under the ticket resale law enacted in April.
The fine details reveal that the company was charged $10,000 for allegedly selling a ticket above its original value, $5,000 for failing to disclose the ticket’s initial purchase price, and another $10,000 for allegedly 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 which event the fines were related to and whether more fines would be issued by the province.
“All ticket vendors in Ontario are required to adhere to our legislation prohibiting ticket resale above face value,” Tingarov stated in an email. “Violators could 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 them or contest them. He explained that while SeatGeek has notified third-party sellers on its platform about the law, they are seeking guidance from the province on compliance methods.
Freeman highlighted the challenge in verifying the original ticket value, especially when sellers like season ticket holders may not have access to that information. Independent platforms such as SeatGeek have limited means to confirm or obtain the original price paid for tickets.
StubHub Canada made a similar argument in response to inquiries about Toronto International Film Festival (TIFF) screenings listed on its site. Tickets for various film premieres were priced above face value, with some premium screenings reported to be above $128.
StubHub stated that the inability to confirm the original purchase price of tickets, particularly those acquired as part of a package deal, led to listings above face value. The company emphasized the necessity of data from the original ticket platform to verify prices and comply with the legislation.
The ongoing dialogue with Ontario officials aims to address unresolved issues, including the proof required from sellers to verify a ticket’s original price, StubHub emphasized in an email.
Vivid Seats also faced scrutiny, with listings for TIFF events appearing above reported fan prices. A spot at the premiere of “Fjord” was listed for $933, and a ticket for the debut of “Rapinoe” was priced at $483 on the platform.
Vivid Seats defended its compliance efforts, stating that it had engaged with the Ontario government and made changes to align with the province’s ticket resale regulations. The company stressed the importance of clear guidance for industry compliance and continuous collaboration with officials.
In late April and early May, the province notified 27 ticket resale websites, including StubHub and Vivid Seats, of impending inspections for compliance with the new law. Subsequent enforcement actions were warned if businesses failed to cooperate.
While StubHub was added to the consumer beware list for alleged non-compliance, there has been no update on fines imposed by the province. Vivid Seats indicated progress in addressing identified compliance areas and ongoing discussions with Ontario to fulfill obligations.