Ticketmaster has started removing resale tickets for Ontario events as per a new provincial law that limits the resale price of tickets to their original face value. The platform’s spokesperson, Shabnum Durrani, mentioned that customers will have the opportunity to list their tickets again next week once the resale marketplace has been updated. Durrani emphasized Ticketmaster’s dedication to establishing a fair and secure ticket marketplace in accordance with all relevant laws and regulations. The recent action follows the passage of Ontario’s budget bill, which included the resale ticket price cap and received royal assent on Friday.
The price cap initiative was prompted by consumer grievances regarding resellers acquiring tickets to high-demand events, such as the World Series and Taylor Swift’s Eras tour, and reselling them at significantly inflated prices. Amendments to the 2017 Ticket Sales Act were introduced by the government last month, following the Premier’s pledge to review legislation in response to exorbitant resale ticket prices in Toronto. The legislation change marks a departure from a previous decision in 2019 when part of an anti-scalping law was revoked, which would have limited ticket resale prices to 50% above their original value.
While initially expected to be exempt from the resale cap, tickets for FIFA World Cup events in Toronto this summer will also fall under the price restriction. The implementation of the new rule was highlighted by Minister Stephen Crawford, who stated that the cap applies immediately, with the government engaging with ticket-selling companies for compliance.
StubHub and SeatGeek, two prominent resale platforms, expressed differing views on the price cap regulation. While StubHub intends to comply with the law despite its opposition, SeatGeek is evaluating the legislation and aims to advocate for favorable outcomes for fans. Concerns were raised by Joe Freeman of SeatGeek, who emphasized potential negative impacts on fans, suggesting that price controls could lead to increased ticket fraud and push transactions to unregulated platforms.
The new law has received mixed reactions from experts, with Vass Bednar viewing it as a positive step towards enhancing accessibility to tickets, despite uncertainties about its practical implementation. On the other hand, Richard Powers from the Rotman School of Business raised concerns about the impact on resale platforms like StubHub, questioning their viability under the new rule. He suggested that a service charge allowing these companies to generate sufficient revenue might be necessary to sustain their operations.
As the law’s effectiveness remains uncertain, questions have been raised about its enforcement. While potential fines of $10,000 for non-compliance have been proposed, doubts persist about whether they will effectively deter reselling activities. The ultimate success of the legislation in curbing ticket reselling practices will depend on how rigorously it is enforced.