Ontario’s upcoming legislation to limit prices on resold sports and concert tickets, set to come into effect on July 1, is facing skepticism from critics who argue that without additional staff for enforcement, the law may not be effective. The Ministry of the Attorney General of Ontario stated that they will utilize existing resources to implement the new Ticket Sales Act.
The new law has sparked discussions at the Canadian Music Week in Toronto, with industry experts questioning its feasibility. Music journalist Alan Cross expressed concerns about the law’s enforcement, emphasizing the need for resources to ensure compliance.
During a conference at the event, Ticketmaster’s North American president, Jared Smith, criticized the legislation, particularly the price cap, stating that it would be challenging to enforce. Similarly, a representative from StubHub echoed these sentiments, calling price caps futile.
Following the Tragically Hip’s farewell tour in 2016, which saw a significant number of tickets being resold by scalpers for substantial profits, Ontario introduced the Ticket Sales Act to address ticket scalping issues. The law permits a 50% markup above face value, with fines of up to $5,000 for violations.
Resale platforms like StubHub and Ticketmaster are now faced with the challenge of complying with Ontario’s price cap, as facilitating sales above the limit could result in penalties. Despite efforts to adjust to the new regulations, concerns remain about the practicality of enforcing the law, especially against online scalpers operating globally.
The Ontario government has delegated the enforcement of anti-scalping measures to the police, while the Ministry of Consumer Services will oversee price cap enforcement without additional staffing. The effectiveness of the law’s implementation remains uncertain, with some critics questioning the feasibility of policing online resale activities.
In light of these challenges, stakeholders are advocating for a robust enforcement strategy to tackle ticket scalping effectively. The ultimate success of the legislation will depend on the commitment of authorities to monitor and regulate ticket resale practices in Ontario.