Ontario's New Law
Ticketmaster Canada has removed resale tickets from their site to comply with Ontario's new law, which places a price cap on ticket resales at face value. The law, passed on Thursday, received royal assent on Friday, and businesses that do not comply will face penalties starting at $3,000, with a maximum penalty of $250,000 for continued non-compliance. According to Shabnum Durrani, Ticketmaster's spokesperson, customers will be able to relist their tickets next week when the platform updates its resale marketplace.
Impact on Resale Platforms
Resale platform StubHub said it complies with the law but didn’t say whether it will immediately take down tickets listed for above face value. StubHub also said it needs more guidance on Ontario’s new regulations. Meanwhile, SeatGeek said the new legislation has downsides, including limiting access to tickets for high-demand events and hurting the ability to resell tickets at market prices.
Stephen Crawford, minister of public and business service delivery, said the government expects all ticket resale companies operating in the province to comply and will have no tolerance for bad actors trying to overcharge families. The legislation arrives ahead of the World Cup’s kickoff in June, which will be hosted by Toronto, Vancouver, and some U.S. and Mexican cities.
Enforcement and Concerns
Experts have said it will be hard to enforce the cap without Ticketmaster and other primary ticket sellers revealing what people pay for each individual seat. They also said the government would need to step up policing informal marketplaces like online communities and people who walk around venues ahead of the event looking to buy or sell tickets. They worry the cap would drive up the original price of tickets and lure people into riskier transactions.
Original reporting by CityNews Toronto.
