Entertainment

Ontario Cracks Down On Scalpers Over High-Priced Ticket Resales

📷 Ontario (PHOTO: CBC)

Ontario has started taking action against ticket scalpers and resale platforms to ensure they follow new rules introduced last month that ban tickets from being resold above their original face value. Despite the law, several resale websites are still listing tickets at significantly higher prices.

Speaking with CBC News, Ontario’s Minister of Public and Business Service Delivery and Procurement, Stephen Crawford, said the province sent inspection notices to resellers last week, with investigations now underway.

The inspections target both independent ticket brokers and major resale companies, including StubHub and SeatGeek.

“Whether you’re a small vendor or a large vendor, you’re part of the secondary market; you are going to be receiving a letter and you are gonna be receiving an inspection,” Crawford said.

The new regulation was included in Ontario’s provincial budget and prohibits anyone from selling — or helping sell — tickets for more than their original purchase price.

Following the rule change, FIFA removed resale World Cup tickets for upcoming games in Toronto, while Ticketmaster updated its platform so tickets cannot be listed above face value.

According to the minister’s office, the current enforcement push may involve phone interviews with resellers, requests for business records, site inspections, and possible penalties, including fines or charges.

Consumers can also report suspected violations through Consumer Protection Ontario.

A spokesperson for the ministry said penalties for breaking the rules range from $3,000 to $250,000.

CBC News obtained one of the government’s enforcement letters sent to a ticket broker. The letter, dated April 30 — roughly a week after the law took effect — outlines the inspection process and warns that enforcement measures may follow if the recipient fails to comply.

Even with enforcement underway, several resale sites continue to advertise tickets above face value.

On StubHub, the listed face value appears on ticket pages. However, during checkout, some tickets show prices — before fees and taxes — that are much higher than the original cost.

SeatGeek does not display face values on its listings, but comparisons with similar seats on Ticketmaster reveal substantially higher resale prices.

The same pattern appears on Vivid Seats and Gametime, where comparable tickets in identical sections are listed far above Ticketmaster’s face-value pricing.

All of the companies said they are working with the government to comply with the new law. SeatGeek stated it is “working to comply,” while Vivid Seats noted that major regulatory changes often require additional guidance before full compliance is possible.

Gametime chief commercial officer Larry Martin said in an emailed statement that the company is “co-operating fully and remain[s] committed to resolving these matters appropriately.”

A spokesperson for StubHub, Jack Sterne, said he could not fully explain why some ticket prices shown during checkout exceeded the stated face value in examples shared by CBC News.

He added that StubHub is still seeking clarification from the government on whether the price cap applies to listings posted before the law came into effect, suggesting that some older listings may still exceed face value.

Frank Mulqueen, who works for Viagogo — the parent company of StubHub — also said the platform currently lacks a direct system for verifying original ticket prices. He explained that doing so would require integration with primary sellers such as Ticketmaster, an idea StubHub has proposed but which has not yet been implemented.

As a result, StubHub currently depends on sellers to provide face-value information, along with its own internal checks, according to Mulqueen.

Although Mulqueen said the company intends to comply with the law, he believes many operational questions should have been settled before the regulation took effect.

“I think there’s a lot of uncertainty amongst some of … the lawmakers, amongst some of the regulators and certainly amongst not just us, but across the industry,” Mulqueen said.

Minister Stephen Crawford acknowledged that companies may need time to update their systems and meet the new requirements.

“We want to work hand-in-hand with these companies. We’re not here to put the hammer down at this point,” Crawford said.

However, he warned that stricter action could follow if companies fail to adjust.

“But, as time moves on and if we don’t see any changes with certain companies, they will be talked to and fined.”

When asked specifically about companies still listing tickets above face value, Crawford urged them to remove those listings immediately.

“If they are blatantly doing that at this point, I would encourage them to take those down very quickly.”

Vass Bednar, managing director of the non-partisan think tank Canadian SHIELD Institute, said some of the implementation concerns raised by StubHub are legitimate and will take time to resolve.

“A public policy change, unfortunately, doesn’t change reality overnight,” Bednar said. “It just changed how the market is supposed to work.”

Still, Bednar noted that online ticket sales make compliance highly visible, especially as Ontario consumers continue noticing tickets priced above face value. Because of that, she said quick enforcement will be important.

Not everyone believes enforcing the cap will be effective. Pascal Courty, an economics professor at University of Victoria, argued that limiting resale prices could push ticket sales away from regulated platforms like StubHub and SeatGeek and into underground markets, where scams may be more common.

“If a small broker wants to trade outside the main platform in the dark with someone who wants a ticket … as long as the owner of the ticket can convince the buyer that the ticket is real, both of them wanna do it, what can the government do to prevent [it]?” Courty said.

Bednar acknowledged concerns about black-market ticket sales but said the law should still reduce widespread “price gouging.”

“People are going to find ways to resell their tickets above face value, but the new law should be making it harder … for that to occur, making it not the norm. And also changing our own expectations as consumers, as fans who want to support artists and sports teams.”

Harnaik Singh Rathor is the Founder, Publisher, and Editor-in-Chief of StudioX News Canada, Canada's multilingual digital news network serving diaspora communities across 44 languages. With a background in media production, public relations, and multicultural communications, he founded StudioX Film and TV Corporation to bridge the gap between mainstream Canadian media and the country's diverse immigrant communities. He is a member of the Canadian Association of Journalists (CAJ), RTDNA Canada, CPRS Vancouver, Unifor, NEPMCC, and the Canada Freelance Union. He holds CAVCO Personnel Number SINH0106. Based in Surrey, British Columbia. | LinkedIn: https://www.linkedin.com/in/harnaiksinghrathor/ | Muck Rack: https://muckrack.com/harnaiksinghrathor | Email: editor@studioxnews.ca

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