Ticketmaster has started removing resale tickets for Ontario events in line with a new provincial law that limits the price of these tickets to their original face value. The platform’s spokesperson, Shabnum Durrani, announced that customers can relist their tickets next week after the platform updates its resale marketplace. Emphasizing their commitment to a fair and compliant ticket marketplace, Durrani mentioned that Ticketmaster has been informing customers about these changes.
This development follows the recent passage of the budget bill by the Ontario government, which includes the cap on resale ticket prices. The move comes after complaints from consumers regarding resellers acquiring tickets for popular events, like 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 revealed by the government last month, following Premier Doug Ford’s pledge to review legislation due to the exorbitant resale ticket prices for the World Series in Toronto. While FIFA World Cup tickets were initially thought to be exempt from the price cap, it was clarified that the cap would apply to the sporting event as well.
Amidst the changes, StubHub and SeatGeek expressed opposition to the price cap. StubHub stated its intent to comply with the law despite its reservations, highlighting concerns about potential ticket fraud. On the other hand, SeatGeek is reviewing the legislation and aims to advocate for favorable outcomes for fans.
Regarding these developments, concerns remain about the impact of price caps on the ticket market. While some view the law as a positive step, others, like Rotman School of Business professor Richard Powers, question the sustainability of reselling platforms under the new regulations. Powers suggests that incorporating a service charge may be necessary for these companies to remain profitable.
Critics, such as Jay Goldberg of the Consumer Choice Center, fear that the new law could consolidate power among major companies like Ticketmaster. However, the effectiveness of the law will depend on enforcement measures. While potential fines for non-compliance have been mentioned, it remains to be seen if they will effectively deter reselling practices.