TORONTO – The Ontario government has imposed a $20,000 fine on ticket reseller StubHub Canada Ltd. under a newly enacted law that restricts the resale of tickets above face value. The penalties, disclosed on the province's Consumer Beware List, include a $10,000 fine for allegedly listing a ticket for sale above its original price, and another $10,000 for facilitating a transaction without proof of the original ticket price.
Both penalties were issued on September 9, but the government did not specify the events related to these infringements. StubHub has refrained from providing further details about the fines but has indicated its intention to contest the penalties.
Jack Sterne, a spokesperson for StubHub, expressed the company's commitment to addressing the legal challenges posed by the Ontario law, which lacks clarity on how marketplaces should verify original ticket prices. He noted that the government has recognized this ambiguity and is expected to amend regulations to resolve it. Despite this, StubHub plans to engage in discussions with the authorities while simultaneously pursuing an appeal against the fines.
Giulia Paikin, a spokesperson for Ontario’s Minister of Public and Business Service Delivery, Stephen Crawford, did not directly address inquiries about the nature of StubHub's fines. Instead, she reiterated the government’s stance on ticket resale regulations, stating, “All ticket sellers in Ontario must comply with our legislation that prohibits the resale of tickets above face value. Any seller who breaks those rules could face fines of up to $250,000 and be publicly identified on the Consumer Beware List. We will not hesitate to hold bad actors who break the rules accountable.”
StubHub has been under scrutiny since the spring, when Ontario authorities sent notices to 27 ticket resale websites indicating that they would be inspected for compliance with the new legislation. Subsequently, the province added StubHub and SeatGeek Canada to its Consumer Beware List, with SeatGeek Canada receiving a $25,000 fine in August for similar violations of the price cap law.
The legislation in question was enacted earlier in the year in anticipation of World Cup soccer matches in Toronto. The law aims to combat rapidly rising ticket resale prices and curb the practices of scalpers who profit from securing tickets for major events. High-profile events that intensified discussions around resale prices include the Toronto Blue Jays' playoff run last year and upcoming Taylor Swift concerts in 2024.
Since the law’s implementation, fans have voiced concerns that tickets are still being sold above face value. Resale platforms have expressed difficulties in complying with the law due to challenges in verifying original ticket prices accurately. StubHub, for instance, pointed out that it complicates compliance as some tickets are sold as part of season packages without clearly defined prices, and that receipts can be easily manipulated by resellers aiming to list tickets at inflated rates.
The company stresses the need for data from the original purchase platforms to confirm ticket prices and align with the law effectively. The ongoing dialogue between StubHub and the Ontario government may lead to further clarifications regarding the legal obligations for ticket resellers moving forward.
