Ticketmaster has initiated the process of removing resale tickets for events in Ontario to adhere to a new provincial law limiting the resale price to the face value of the tickets. The platform’s representative, 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 compliance with all relevant laws and regulations and stated that customers have been informed about the alterations.
This action follows the passing of the budget bill by the Ontario government, which included the implementation of the resale ticket price cap. The bill was granted royal assent on Friday after receiving widespread complaints from consumers regarding the resale of tickets for popular events at exorbitant prices compared to their original face value.
Amendments to the 2017 Ticket Sales Act were revealed by the government last month after the premier vowed to review legislation due to the high resale prices of World Series tickets in Toronto. The promise marked a significant shift in stance by Premier Doug Ford, who had previously eliminated part of an anti-scalping law in 2019 that aimed to cap ticket resale prices at 50% above the original value.
Despite expectations that tickets for FIFA World Cup events in Toronto would be exempt from the price cap, a spokesperson for the minister of public and business service delivery and procurement clarified that the cap would apply to the sporting event as well. The immediate enforcement of the resale cap rule was announced by Stephen Crawford’s press secretary, Giulia Paikin, who also mentioned ongoing communication with ticket-selling companies.
StubHub and SeatGeek expressed opposition to the price cap change, with a StubHub spokesperson highlighting concerns about potential ticket fraud and asserting the need for further guidance from the province. SeatGeek’s vice-president of government relations, Joe Freeman, indicated that the company is assessing the legislation and striving for the best outcome for fans.
The concerns surrounding price caps persist despite the new law being viewed as a positive step by some experts. While Vass Bednar from the Canadian SHIELD Institute sees the law as making ticket access more predictable and accessible, Richard Powers from Rotman School of Business raised concerns about the impact on reselling platforms like StubHub. Powers suggested that a service charge might be essential for these companies to maintain profitability.
Critics like Jay Goldberg from the Consumer Choice Center noted that the law could potentially strengthen the position of major companies like Ticketmaster by allowing them to set higher initial ticket prices. The effectiveness of the law will depend on enforcement, with possible fines of $10,000 for non-compliant companies being considered. Powers emphasized the need to observe the law’s enforcement to determine its true impact.