The Ontario government has initiated actions against ticket scalpers and resale platforms to ensure compliance with recently introduced regulations that limit the resale price of tickets to face value. Despite the new rules, some ticketing platforms continue to list tickets well above their original prices.
In an interview with CBC News, Minister of Public and Business Service Delivery and Procurement Stephen Crawford stated that letters informing resellers of inspections were sent out last week, with inspections currently in progress. The targeted resellers include ticket brokers and major companies like StubHub and SeatGeek.
Enforced as part of Ontario’s provincial budget, the rule prohibits individuals from reselling tickets for more than their original purchase price. Consequently, FIFA withdrew resale World Cup tickets for upcoming Toronto games, while Ticketmaster adjusted its site to prevent tickets from being listed above face value.
This week’s enforcement activities may encompass phone conversations with resellers regarding their business practices, requests for relevant records, site visits, and enforcement measures such as fines or charges. Penalties for violations, according to the minister’s office, can range from $3,000 to $250,000.
While some companies, like StubHub, are still selling tickets above face value, efforts are being made to cooperate with the government and adhere to the regulations. Compliance details regarding older listings and the application of price caps are being clarified with the government.
Minister Crawford emphasized the importance of companies promptly removing tickets listed above face value. He expressed willingness to collaborate with companies for compliance but warned of potential fines if necessary changes are not made.
Some concerns have been raised regarding the enforcement of price caps. Pascal Courty, an economics professor, highlighted potential challenges in limiting resale prices, leading to transactions on unofficial channels. Despite concerns, experts believe the new rule will help curb excessive price inflation in the ticket resale market.
