The Ontario government has initiated actions against ticket scalpers and secondary market platforms to ensure compliance with recently introduced regulations that limit ticket resale prices to face value. Despite the new rules, some platforms continue to list tickets at inflated prices.
Minister of Public and Business Service Delivery and Procurement Stephen Crawford confirmed that notifications for inspections were sent out to resellers, with inspections currently in progress. Both independent ticket brokers and major companies like StubHub and SeatGeek are subject to these inspections.
The legislation, part of Ontario’s provincial budget, prohibits the sale or facilitation of ticket sales at prices exceeding their original purchase value. In response, FIFA removed resale World Cup tickets for Toronto games, and Ticketmaster adjusted its platform to prevent listings above face value.
The current enforcement phase may involve communication with resellers regarding their practices, requests for records, site visits, and potential penalties, as mentioned by the minister’s office. Customers can report concerns about potential violations to Consumer Protection Ontario, with fines ranging from $3,000 to $250,000 for non-compliance.
Despite enforcement efforts, some companies like StubHub are still offering tickets above face value. While these companies claim to be working towards compliance, discrepancies persist in pricing practices. Cooperation with government authorities is emphasized, with plans to address any remaining non-compliance promptly.
Minister Crawford emphasized the need for companies to act swiftly to rectify any violations, with potential penalties for non-compliance. Concerns regarding the enforcement of price caps are raised by industry insiders, acknowledging the complexity of transitioning to the new regulations.
Experts such as Pascal Courty caution that restricting resale prices may drive transactions towards unofficial channels, potentially increasing the risk of scams. However, proponents believe that the new law will deter price gouging and encourage a shift in consumer expectations regarding ticket resale practices.