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Ontario has issued what could be its first fine against a ticket reselling platform under the province’s anti-scalping law, which continues to get tested as resellers look to unload tickets to upcoming events such as the Toronto International Film Festival.
The province’s consumer-beware website states that SeatGeek Canada was fined $25,000 in late August, but showed no other fines for ticket sellers, suggesting SeatGeek may be the first to face financial repercussions under the ticket resale law enacted in April.
An outline of the fine states the company was penalized $10,000 for allegedly selling a ticket above face value, $5,000 for what’s described as a failure to disclose the original purchase price of a ticket, and another $10,000 for allegedly facilitating a transaction without having proof of the original price.
Cristian Buzo Tingarov, a spokesperson for the Ontario Minister of Public and Business Service Delivery Stephen Crawford, did not answer questions on Thursday about what event the fines were linked to and whether the province will issue others.
“All ticket sellers in Ontario must comply with our legislation that prohibits the resale of tickets above face value,” he said in an email. “Any seller who breaks those rules could face fines of up to $250,000 and be posted publicly.”
SeatGeek not saying if it will pay fines or fight them
SeatGeek’s vice-president of government affairs Joe Freeman did not say whether the company plans to pay the fines or fight them.
While SeatGeek has warned third-party sellers on its platform about the law, he said the company is still trying to get guidance from the province around how to comply with the regulations.
Freeman said it can be challenging for SeatGeek to confirm the original value of a ticket when “many sellers, including season ticket holders, don’t have access to the original face value of their tickets.”
“This means that independent platforms, like SeatGeek, have limited ability to obtain or verify the price paid when the ticket was purchased from the primary seller.”
StubHub Canada made the same argument in response to questions about Toronto International Film Festival (TIFF) screenings that were recently listed on its website.
A pair of tickets to Werner Herzog’s love triangle drama Bucking Fastard were posted on StubHub for more than $2,300, while a single seat at the debut of the Hudson Williams-led TV show Yaga was available for $777.
TIFF did provide comment on ticket pricing.
No way to know what buyers paid: StubHub
Fans who bought seats during member sales last week reported seeing premium screenings, which often include a Q-and-A with the cast or director, listed for upwards of $128.
Earlier this summer, TIFF was selling a curated package of tickets to five buzzy premieres for $1,760, which works out to about $352 per ticket.
StubHub suggested listings that appear to be above face value are a consequence of the platform not having a way to confirm what buyers originally paid for tickets.
Ontario has begun cracking down on ticket resellers to make sure they comply with the province’s ban on reselling tickets at prices above face value. But CBC News found tickets on StubHub that appeared to violate the ban.
The company argues some tickets, like those purchased as a package for a season, don’t have prices on them, and also that receipts can easily be doctored by resellers wanting to list tickets for more than face value.
StubHub says it would need data from the original platform a ticket was purchased from in order to confirm the prices, and comply with the law.
“Some core issues, like what proof sellers should provide to verify a ticket’s original price, remain unresolved,” the company said in an email. “We remain committed to working with the government to address these matters.”
Some TIFF listings that appear to be above the prices reported by fans during member sales also cropped up on Vivid Seats.
Spot at film premier selling for $933 on one platform
A spot at the premiere of Palme d’Or winner Fjord was for sale on the platform for $933 and a ticket to the debut of soccer star biopic Rapinoe was $483 this week.
Vivid Seats spokesperson Julia Young said it is “factually inaccurate” to suggest the company is disobeying legislation because it’s been in “an active dialogue with the Ontario government and has implemented changes to enable compliance with the requirements established by the province’s new ticket resale framework.”
“Changes of this scale require clear, consistent guidance across the industry, and we continue to work with Ontario officials to clarify the legislation and support its effective implementation,” she wrote in an email.
In late April and early May, the province sent 27 ticket resale websites, including StubHub and Vivid Seats, letters announcing the businesses would be inspected for non-compliance with the new law.
The province’s letter warned the process could result in follow-up inspections and said if a business “does not co-operate, enforcement action may be taken.”
After the letters were sent, the province added StubHub to its consumer beware list for alleged lack of compliance. It has not updated the entry with news of any fines.
Vivid Seats spokesperson Young told The Canadian Press in July that the company had remedied nearly all of the areas of non-compliance that were identified by the Ontario government.
She said Vivid Seats expected to be in compliance that month but was still in conversation with the province around how to meet its obligations.