Ticketmaster has initiated the process of removing resale tickets for Ontario events to adhere to a new provincial law that limits the price of such tickets to their original face value. The platform’s representative, Shabnum Durrani, mentioned that customers will have the opportunity to re-list their tickets next week once the resale marketplace has been updated. Durrani emphasized Ticketmaster’s commitment to establishing a fair and secure ticket marketplace for all while complying with relevant laws and regulations.
This action follows the passing of the budget bill by the Ontario government, which included the imposition of a cap on resale ticket prices. The bill was granted royal assent last Friday. The introduction of the price cap was prompted by consumer grievances regarding the exorbitant prices of tickets for popular events, like last year’s World Series and Taylor Swift’s Eras tour, sold by resellers at multiples of their original value.
Adjustments to the 2017 Ticket Sales Act were declared by the government last month following the premier’s pledge to review legislation due to the high resale prices of World Series tickets in Toronto. Although it was anticipated that tickets for FIFA World Cup events in Toronto this summer would be exempt from the resale cap, a spokesperson for the minister of public and business service delivery and procurement confirmed that the cap would indeed apply to the sporting event as well.
StubHub and SeatGeek expressed their opposition to the change, with StubHub noting that while they intend to comply with the law, they believe price caps could lead to increased ticket fraud. SeatGeek stated that they are evaluating the legislation and will continue to advocate for the best outcomes for fans.
Despite some concerns about the effectiveness of the new law, Vass Bednar, managing director of the Canadian SHIELD Institute, viewed it as a positive step, making ticket access more predictable and accessible. However, Richard Powers, a professor at the Rotman School of Business, raised doubts about the impact on reselling platforms like StubHub, as the new rule eliminates their ability to profit from resales.
The effectiveness of the law will depend on enforcement, with potential fines of $10,000 for non-compliant companies being considered. The implications of the law on promoting competition and controlling reselling activities remain uncertain and will only become clearer with time.