Ticketmaster has started removing resale tickets for events in Ontario to adhere to a recent provincial law that limits the resale price of tickets to their original face value. According to a spokesperson for the platform, Shabnum Durrani, customers will have the opportunity to relist their tickets once Ticketmaster updates its resale marketplace next week. Durrani emphasized Ticketmaster’s commitment to maintaining a fair and secure ticket marketplace that complies with all relevant laws and regulations, noting that customers have been informed of the adjustments.
This action follows the passing of a budget bill by the Ontario government, which included the introduction of the resale ticket price cap. The bill was granted royal assent on Friday in response to consumer complaints about resellers acquiring tickets to high-demand events, such as last year’s World Series and Taylor Swift’s Eras tour, and reselling them at significantly inflated prices.
Updates to the 2017 Ticket Sales Act were announced by the government last month, prompted by the Premier’s pledge to review legislation following the exorbitant resale prices of World Series tickets in Toronto. Notably, the resale cap will also apply to FIFA World Cup events in Toronto this summer, contrary to initial expectations of an exemption. The Minister’s spokesperson confirmed that FIFA events will not be exempt from the price cap.
In response to the new law, StubHub and SeatGeek expressed varying degrees of opposition. StubHub indicated its intention to comply with the law while seeking further guidance, highlighting concerns about potential ticket fraud and questioning the effectiveness of price caps. SeatGeek, on the other hand, stated that it is reviewing the legislation and will advocate for favorable outcomes for fans.
Concerns remain about the implications of price caps on the ticket resale market. While some view the law as a positive step towards accessibility and predictability in ticket purchasing, others, like Rotman School of Business professor Richard Powers, are skeptical about its impact on reselling platforms’ viability. Powers suggested that a service charge may be necessary to sustain the operations of companies like StubHub under the new regulations.
The effectiveness of the law and its enforcement are subjects of ongoing debate. Consumer advocates worry that the legislation may consolidate power in the hands of major companies like Ticketmaster, potentially leading to increased ticket prices from the outset. Observers like Jay Goldberg from the Consumer Choice Center and Richard Powers emphasize the importance of robust enforcement mechanisms to deter non-compliance and ensure the law’s effectiveness.