Humber Polytechnic Music Business Professor Thom McKercher on the ban of resale tickets and fears that it may become another \u2018rule with no teeth behind it.\u2019 <\/p>\n
The province\u2019s plan to protect buyers from exorbitant resale ticket<\/a> prices could leave them worse off, with experts warning that banning the sale of tickets for more than face value could drive more tickets to third-party markets.<\/p>\n The Doug Ford government announced earlier this month its plans to outlaw the resale of tickets for more than their original value ahead of the FIFA World Cup. The premier called ticket scalpers out directly, saying their \u201cdays of ripping off are done.\u201d<\/p>\n Ford first indicated he would review resale tickets after the Toronto Blue Jays\u2019 improbable deep season run, where prices soared out of the park<\/a>. Some tickets for Game 7 were listed for as much as $16,000 on resale platforms.<\/p>\n \u201cWhen you have one player in the market that controls the tickets, that\u2019s not right for the people,\u201d Ford told reporters in October.<\/p>\n The ministry of public and business service delivery and procurement confirmed to CTV News Toronto that the government\u2019s proposed amendments to the Ticket Sales Act of 2017 would prohibit the resale of tickets to concerts, sports, and other live events in the province for more than the original all-in purchase price. That price includes fees, service changes, and applicable taxes, the ministry notes. <\/p>\n \u201cThe rules, once passed, will take effect immediately and apply across all resale platforms, ensuring a consistent, province-wide approach. These changes are putting fans first,\u201d Giulia Paikin, press secretary to the minister\u2019s office, said in a statement. <\/p>\n The new framework means that if a fan bought a concert ticket for $600 and resold it to someone else for $1,200, that other person would have to resell it at the original price of $600.<\/p>\n \u2018There has to be an incentive\u2019<\/p>\n But these proposed changes might do more harm to the average consumer, as it could darken the resale market by paving the way for more scammers and unregulated marketplaces, experts say.<\/p>\n Richard Powers, associate professor at Rotman School of Management, outlined the trickle-down effects implementing this cap would have, as it could create a lack of incentive for legitimate resale platforms, like Ticketmaster and StubHub. <\/p>\n \u201cThere has to be an incentive. They have to be still making a profit,\u201d Powers said in an interview with CTV News Toronto. \u201cWhy else would they do it? \u2026 It is certainly going to push sales over to the black market, if you want to call it, or the unregulated market.\u201d<\/p>\n For its part, Live Nation Entertainment<\/a>, the parent company to Ticketmaster, expressed support for the changes as it is in favour of promoting \u201cfair, transparent ticketing.\u201d<\/p>\n Powers questioned how the province would monitor platforms like Facebook Marketplace and Kijiji, since the owner of those companies are based outside of Ontario. <\/p>\n \u201cMy point is, as long as demand outstrips supply, a viable second market will always exist, and the legislation may curb legal resellers, but it\u2019s not going to curb the black market,\u201d Powers said. <\/p>\n This could clear the way for scammers, Powers noted. <\/p>\n \u201cThe advantage that consumers had with the secondary market\u2014the legal secondary market\u2014is that it was legal and it was harder to scam,\u201d Powers said. \u201cOnce you get into Kijiji and all those, you don\u2019t have those protections at all.\u201d<\/p>\n The province scrapped a law in 2019 that would have limited resale prices at 50 per cent above face value, calling it \u201cunenforceable.\u201d Both experts CTV News Toronto spoke with questioned how the province does plan to enforce implementing these price caps. <\/p>\n \u201cI mean in theory, it\u2019s great,\u201d Vijay Setlur, marketing instructor at York University\u2019s Schulich School of Business, said in an interview. \u201cWhat mechanisms are in place to enforce this, and find people, and deal with the violators?\u201d<\/p>\n Ontario included its plans to outlaw overpriced resale tickets in its budget, revealed Thursday, where the province said it will address \u201clongstanding concerns about unfair resale practices.\u201d<\/p>\n \u201cRecent high-demand events have highlighted how quickly tickets can be purchased and relisted at significantly higher prices,\u201d the budget reads.<\/p>\n Since this legislation is included in this year\u2019s budget, the policy will be implemented prior to the FIFA World Cup in Toronto later this summer. Setlur questioned how Ontario\u2019s legislation would play into FIFA\u2019s personal resale platform. <\/p>\n \u201cAll the ticketing has been handled through their (FIFA\u2019s) own platform, and they also have their own resale platform,\u201d Setlur said. \u201cIf the government is going to go into that platform, I mean, I don\u2019t know how that\u2019s going to work because that platform belongs to the primary channel, it\u2019s not Ontario.\u201d<\/p>\n While FIFA did not directly comment on how it will adjust its resale platform once this legislation is in place, a spokesperson said its marketplace has to adhere to local policies.<\/p>\n \u201cThis initiative (FIFA Resale Marketplace) is designed to protect fans from invalid or unauthorized resale\/exchange and is subject to federal and local regulations, as well as the applicable terms and conditions,\u201d FIFA said. \u201cThis initiative is aimed at safeguarding fans against invalid or unauthorized resale\/exchange and is available to fans subject to federal and local regulations.\u201d<\/p>\n British Columbia, who is also hosting World Cup matches in Vancouver this summer, is keeping an eye on how Ontario\u2019s amendments<\/a> play out before implementing a ban themselves on for-profit resales.<\/p>\n