A recent press release indicates that the provincial government of Ontario intends to prohibit excessively inflated prices for event tickets on the secondary market.
Premier Ford declared on social media Friday, “We are alerting ticket resellers: Your era of overcharging the public has ended.”
Proposed revisions to the Ticket Sales Act of 2017, originally brought forward by the previous Liberal administration, are being considered by the province. These changes would prohibit the resale of live event tickets at a price exceeding their initial face value.
This maximum price would be enforced for individuals engaged in ticket resales and any platforms that facilitate such transactions.
This current initiative follows several years after the Ford administration eliminated a component of anti-scalping legislation in 2019, which had aimed to limit resale markups to 50 percent beyond the initial face value.
Stephen Crawford, who serves as the minister responsible for public and business service delivery and procurement, stated in the release, “We are acting to guarantee that residents of Ontario can obtain resale tickets at reasonable rates and are not subjected to predatory pricing when purchasing passes for popular events.”
Additionally, the Ford government plans to enhance regulations to prevent the sale of counterfeit tickets and to establish fresh guidelines aimed at curbing excessive service fees.
We’re a little more than six months away from the FIFA World Cup games and fans are already battling eye-popping resale costs. CBC’s Julia Knope breaks down what you need to know about securing yourself tickets — and why a lack of scalping regulations in Ontario could mean you’re paying a high premium.
On Friday, Stan Cho, the minister overseeing tourism, culture, and gaming, informed CBC Toronto that this marks a significant achievement for consumer safeguards, while acknowledging that it doesn’t resolve the issue of supply and demand discrepancies.
He explained, “Technological advancements have occurred. Automated programs are acquiring vast quantities of tickets and then reselling them at exorbitant rates, rendering them inaccessible for individuals simply aiming to attend a sporting event or watch their preferred performer live.”
“Should you be among the lucky individuals who secure entry to a performance, you will not face exploitation through inflated costs for that occasion.”
According to Cho, considerable consultation is still necessary before the price ceiling can be put into effect, particularly concerning methods of legal enforcement. He stated, “The truth is, if this legislation passes, it will constitute an unlawful act… and consequently, akin to other law violators, we will pursue them through suitable legal channels.”
Ford reversed his position on ticket resales previously
In 2019, Bill Walker, who previously held the role of minister for government and consumer services, characterized the initial legislation proposed by the Ontario Liberals as both “impossible to enforce” and merely “a catchy phrase.”
However, Ford retracted this position last year, prompted by extremely high prices for the World Series in Toronto, indicating his intention to re-examine the laws.
In October, Ford commented, “They are exploiting consumers.” He added, “A single entity dominates the ticket market, which is unjust for the populace.”
Both the Liberal and NDP parties similarly pressed the provincial government to intervene. The Liberals, in fact, introduced a bill last year advocating for the reinstatement of the initial resale price limit.
Rob Cerjanec, the Ontario Liberal critic for tourism and culture, remarked in an October press statement, “Should the Premier restore the maximum price on resold tickets, it would represent his most significant policy reversal to date.”
During a separate press conference on Friday, Transportation Minister Prabmeet Sarkaria stated that Ford has “consistently championed consumer interests” and desires “equity within the secondary market.”
Sarkaria explained that ticket touts employ automated programs and artificial intelligence to acquire substantial quantities of initial release tickets, subsequently selling them at “outrageous” sums. He indicated that the provincial strategy aims to “mitigate” this problem and address individuals capitalizing on the market.
Baseball fans are set to bring their energy, and their wallets, to Toronto to see the Blue Jays play the first two games of the World Series. CBC’s Marianne Dimain and Meagan Fitzpatrick report on how much tickets and merch are going for.
Kristyn Wong-Tam, the Ontario NDP’s shadow attorney general, expressed in an emailed statement that this policy alteration is a positive development.
She asserted, “Doug Ford has exposed residents of Ontario to a system plagued by deception, automated programs, and exploitative secondary sellers,” further emphasizing that the province must implement measures that “cannot be bypassed by those reselling tickets.”
“Attending a game to cheer for your team or watching your most-loved performer should not necessitate a substantial financial commitment.”
Ontario NDP leader Marit Stiles posted on social media that if Ford genuinely intends to implement reforms, he must guarantee the absence of any loopholes or “insufficient actions,” unlike the plan put forth by the previous Liberal administration.
On Friday, Mike Schreiner, the leader of the Ontario Green Party, stated that Ford took no action regarding ticket costs for a period of seven years.
He remarked, “He has guided us in the reverse direction.” He continued, “This is the very government that claimed they were removing these limitations – the maximum prices on ticket resales – citing unenforceability.”
Schreiner expressed astonishment at their change of strategy.
He speculated, “I believe it serves as a diversion from the Ford government’s inability to enact policies that simplify life and reduce expenses for Ontarians.” He added, “For the past seven years, the premier has favored affluent and influential individuals over the average citizens of Ontario. Therefore, I am pleased that he is at last recognizing the issue.”
Price limit could ‘exacerbate issues’ for spectators: SeatGeek VP
In the absence of such a ceiling, secondary market platforms such as Ticketmaster, StubHub, and SeatGeek operate without limitations on ticket resale values.
Tickets for highly sought-after events in Toronto, including Taylor Swift’s Eras Tour and the World Series, commanded prices reaching into the thousands, causing considerable frustration among attendees.
Joe Freeman, SeatGeek’s vice president of government affairs, asserted in a statement that regulating prices would only “complicate matters” for supporters, possibly leading to increased foundational costs or hidden charges within transactions.
He elaborated, “Should resale prices be artificially restrained beneath their market worth, tickets will shift from clear, regulated venues to unofficial avenues where buyers lack safeguards if issues arise — leading to a rise in scams and a loss of consumer safeguards.”
Freeman suggested that the province ought to implement policies designed to foster greater competition and enhance consumer safeguards instead.
Similar apprehensions were articulated in a communiqué from Jay Goldberg, the Canadian affairs manager for the Consumer Choice Centre.
He urged the provincial authorities to abandon their proposed price ceiling, cautioning that entities such as Ticketmaster and its parent company, Live Nation Entertainment, hold an exclusive grip on the initial ticket sales market.
He noted that in the absence of any competition in the secondary market, the cost of original tickets might escalate.
Shabnum Durrani, a spokesperson for Live Nation Entertainment, conveyed in an emailed message that the company supports policies that “foster equitable, clear ticketing” and “restrain abusive resale conduct.”
Durrani also mentioned that Live Nation expressed openness to “continuing discussions” with the province regarding enhancing access to live events.
Following a lawsuit initiated by the U.S. Federal Trade Commission in September, Ticketmaster committed in October to intensifying efforts against ticket touts.
Jack Sterne, StubHub’s head of policy communications, stated that Ticketmaster and Live Nation emerged from an American antitrust proceeding “with a minimal penalty… and their market dominance undisturbed.”
He further commented, “Presently, Ontario aims to favor them by introducing legislation that mirrors Ticketmaster’s strategies to disadvantage its rivals,” asserting that leaders should concentrate on regulations that “control Ticketmaster’s pricing.”
Ontario is currently adopting a course of action similar to Quebec’s proposed laws and a prohibition enacted in the U.K. during the previous year.
According to Quebec’s proposed legislation, ticket resale prices would be forbidden from surpassing their initial cost, unless explicitly sanctioned by the event organizer.
