Ticketmaster has initiated the process of removing resale tickets for events in Ontario in accordance with a new provincial law that limits the price of such tickets to their original face value. According to Shabnum Durrani, a spokesperson for the platform, customers will have the opportunity to relist their tickets once an updated resale marketplace is available next week.
Durrani emphasized Ticketmaster’s commitment to establishing a fair and secure ticket marketplace for all individuals while complying with relevant laws and regulations. This action follows the passing of the budget bill by the Ontario government, which included the imposition of a cap on resale ticket prices, receiving royal assent on Friday.
The price cap was introduced in response to consumer grievances regarding the resale of tickets for high-demand events like the World Series and Taylor Swift’s Eras tour at significantly inflated prices by resellers. Updates to the 2017 Ticket Sales Act were announced by the government last month in line with the premier’s pledge to address the issue of exorbitant resale ticket prices in Toronto.
Despite initial opposition from platforms like StubHub and SeatGeek, they are making efforts to comply with the law. StubHub expressed concerns over price caps potentially leading to increased ticket fraud without reducing costs. On the other hand, SeatGeek is reviewing the legislation to advocate for optimal outcomes for fans.
While the cap was expected to exempt tickets for FIFA World Cup events in Toronto, it was clarified that the cap would apply to the sporting event as well. The enforcement of the resale cap was confirmed to take immediate effect, with the government planning to engage with ticket-selling companies.
Regarding concerns about the impact of price caps, opinions vary. Vass Bednar from the Canadian SHIELD Institute views the law as a positive step towards a more predictable and accessible ticket market. However, Richard Powers from the Rotman School of Business highlighted the potential negative implications for reselling platforms like StubHub under the new rule.
The effectiveness of the law in curbing ticket resale practices and ensuring fair access to events remains a point of contention. While some believe that stringent enforcement with substantial fines for non-compliance may be necessary, others question whether these measures will be sufficient deterrents.
