The Ontario government has initiated actions against ticket scalpers and resale platforms to ensure compliance with recently implemented regulations that limit ticket resale prices to face value. Despite the new rules, some ticketing platforms continue to list tickets well above their original prices.
Minister of Public and Business Service Delivery and Procurement Stephen Crawford stated in an interview with CBC News that notifications for inspections have been sent out to resellers, with inspections currently ongoing this week. The targeted resellers include ticket brokers and major companies like StubHub and SeatGeek.
The legislation, part of Ontario’s provincial budget, prohibits the sale or facilitation of ticket sales at prices higher than the original purchase price. Enforcement measures, including fines or charges, may be taken against non-compliant entities following an enforcement blitz involving various methods such as phone inquiries, record requests, site visits, and potential penalties.
Violations can result in fines ranging from $3,000 to $250,000, according to a ministerial spokesperson. Despite enforcement efforts, some companies are still offering tickets above face value. For instance, StubHub and SeatGeek have been found listing tickets at significantly higher prices compared to their face values.
While these companies claim to be working towards compliance, issues persist regarding the interpretation and application of the new regulations. Stakeholders like Frank Mulqueen from Viagogo, the parent company of StubHub, emphasize the need for clearer guidelines to ensure adherence to the law.
Minister Crawford acknowledged the challenges companies face in adapting their systems but emphasized the importance of timely compliance. Failure to adhere to the regulations may result in further scrutiny and penalties.
Vass Bednar, managing director of The Canadian SHIELD Institute, noted that transitioning to compliance takes time and that public policy changes do not instantly alter market practices. However, he emphasized the significance of swift enforcement to address concerns regarding ticket resale practices.
While some experts raise concerns about the feasibility of enforcing resale price caps, others believe that the new regulations will curb exploitative practices in the ticket resale market. Despite potential challenges, the government aims to create a fairer ticketing environment for consumers and industry players alike.