The Ontario government has initiated actions against ticket scalpers and online resale platforms to ensure compliance with recently introduced regulations setting a cap on ticket resale prices at face value. Despite the regulations, some ticketing platforms are still openly listing tickets at prices well above their original cost.
Minister of Public and Business Service Delivery and Procurement, Stephen Crawford, mentioned in an interview with CBC News that inspection notifications were sent out to resellers last week, with inspections currently in progress. The targeted resellers include ticket brokers and major companies like StubHub and SeatGeek.
The new rule, part of Ontario’s provincial budget, prohibits the sale or facilitation of ticket sales at prices higher than their initial purchase price. Consequently, FIFA removed resale World Cup tickets for forthcoming Toronto games, and Ticketmaster adjusted its platform to prevent tickets from being listed above face value.
This week’s enforcement activities may involve communication with resellers regarding their business practices, requests for relevant documentation, site visits, and potential enforcement measures such as fines or charges. Customers are encouraged to report any concerns about potential violations to Consumer Protection Ontario. Fines for violations can range from $3,000 to $250,000, according to a spokesperson for the minister.
Despite the enforcement efforts, some companies continue to offer tickets above face value. StubHub, for instance, displays the face value of tickets on its website, but during checkout, the prices for some tickets are significantly higher before additional fees and taxes. Similar discrepancies are observed on SeatGeek, Vivid Seats, and Gametime platforms.
The companies have stated their commitment to complying with the regulations, with SeatGeek mentioning its efforts to adhere to the rules and Vivid Seats highlighting the need for guidance to ensure compliance. Gametime’s chief commercial officer, Larry Martin, assured full cooperation in resolving the issues appropriately.
Regarding compliance challenges, StubHub expressed uncertainty about the application of the price cap to listings posted before the new law came into effect. Frank Mulqueen, government affairs director for Viagogo, emphasized the need for integration to verify face value prices accurately.
Minister Crawford acknowledged the need for companies to adjust their systems for compliance and emphasized a collaborative approach. However, he warned that companies failing to comply may face penalties in the future.
Vass Bednar from the Canadian SHIELD Institute emphasized the importance of swift enforcement to address visible non-compliance and restore market integrity. Despite concerns about the emergence of a black market for tickets, experts believe that the new regulations will curb price gouging and promote fair ticket resale practices.
